COVER PAGE
COVER PAGE - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 31, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
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 Ave | |
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 $0.01 per share | |
Trading Symbol | WSFS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 60,731,884 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000828944 | |
Current Fiscal Year End Date | --12-31 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Interest income: | ||||
Interest and fees on loans and leases | $ 218,903 | $ 152,887 | $ 620,511 | $ 401,110 |
Interest on mortgage-backed securities | 26,654 | 28,338 | 81,310 | 78,828 |
Interest and dividends on investment securities: | ||||
Taxable | 699 | 703 | 2,103 | 2,107 |
Tax-exempt | 1,481 | 1,278 | 4,496 | 2,535 |
Other interest income | 3,402 | 3,359 | 10,871 | 6,142 |
Total interest income | 251,139 | 186,565 | 719,291 | 490,722 |
Interest expense: | ||||
Interest on deposits | 57,255 | 6,643 | 142,501 | 13,537 |
Interest on Federal Home Loan Bank advances | 167 | 42 | 5,135 | 42 |
Interest on senior and subordinated debt | 2,453 | 2,061 | 7,360 | 5,939 |
Interest on federal funds purchased | 185 | 28 | 1,324 | 28 |
Interest on trust preferred borrowings | 1,764 | 951 | 4,954 | 2,146 |
Interest on other borrowings | 6,713 | 9 | 11,041 | 26 |
Total interest expense | 68,537 | 9,734 | 172,315 | 21,718 |
Net interest income | 182,602 | 176,831 | 546,976 | 469,004 |
Provision for credit losses | 18,414 | 7,454 | 63,255 | 34,693 |
Net interest income after provision for credit losses | 164,188 | 169,377 | 483,721 | 434,311 |
Noninterest income: | ||||
Loan and lease fee income | 1,621 | 1,425 | 4,183 | 4,457 |
Unrealized (loss) gain on equity investments, net | (5) | 0 | (9) | 5,988 |
Bank owned life insurance income | 1,697 | 195 | 3,967 | 674 |
Total non interest income | 72,668 | 62,651 | 202,666 | 195,254 |
Noninterest expense: | ||||
Salaries, benefits and other compensation | 74,453 | 72,294 | 219,669 | 211,413 |
Occupancy expense | 9,529 | 9,699 | 30,069 | 30,393 |
Equipment expense | 10,563 | 9,913 | 31,165 | 30,674 |
Data processing and operations expenses | 4,867 | 5,362 | 14,362 | 16,009 |
Professional fees | 4,612 | 3,561 | 15,169 | 12,285 |
Marketing expense | 2,049 | 2,082 | 5,930 | 4,985 |
FDIC expenses | 2,534 | 1,540 | 7,979 | 4,399 |
Loan workout and other credit costs | (189) | 1,001 | 292 | 1,103 |
Corporate development expense | 113 | 1,248 | 3,649 | 41,679 |
Restructuring expense | 0 | 1,344 | (787) | 22,792 |
Other operating expense | 31,158 | 24,873 | 86,490 | 65,691 |
Noninterest expenses | 139,689 | 132,917 | 413,987 | 441,423 |
Income before taxes | 97,167 | 99,111 | 272,400 | 188,142 |
Income tax provision | 22,904 | 25,767 | 66,880 | 49,929 |
Net income | 74,263 | 73,344 | 205,520 | 138,213 |
Less: Net income (loss) attributable to noncontrolling interest | 97 | (38) | 272 | 287 |
Net income attributable to WSFS | $ 74,166 | $ 73,382 | $ 205,248 | $ 137,926 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 1.22 | $ 1.16 | $ 3.35 | $ 2.15 |
Diluted (in dollars per share) | $ 1.22 | $ 1.16 | $ 3.34 | $ 2.15 |
Weighted average shares of common stock outstanding: | ||||
Basic (in shares) | 60,941,922 | 63,047,675 | 61,264,862 | 64,064,488 |
Diluted (in shares) | 61,039,317 | 63,227,983 | 61,367,802 | 64,282,992 |
Total credit/debit card and ATM income | ||||
Noninterest income: | ||||
Noninterest income | $ 14,869 | $ 10,993 | $ 42,660 | $ 27,446 |
Investment management and fiduciary income | ||||
Noninterest income: | ||||
Noninterest income | 32,720 | 29,504 | 95,575 | 90,877 |
Deposit service charges | ||||
Noninterest income: | ||||
Noninterest income | 6,534 | 6,262 | 18,850 | 18,158 |
Mortgage banking activities, net | ||||
Noninterest income: | ||||
Noninterest income | 1,254 | 1,420 | 3,680 | 6,529 |
Total other income | ||||
Noninterest income: | ||||
Noninterest income | $ 13,978 | $ 12,852 | $ 33,760 | $ 41,125 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income | $ 74,263 | $ 73,344 | $ 205,520 | $ 138,213 | |
Less: Net income (loss) attributable to noncontrolling interest | 97 | (38) | 272 | 287 | |
Net income attributable to WSFS | 74,166 | 73,382 | 205,248 | 137,926 | |
Net change in unrealized losses on investment securities available-for-sale | |||||
Net unrealized losses arising during the period, net of tax benefit of $40,270, $63,954, $36,278, and $178,061, respectively | (127,523) | (202,520) | (114,880) | (563,860) | |
Net change in securities held-to-maturity | |||||
Net change unrealized gains (losses) on available-for-sale securities reclassified to held-to-maturity, net of tax (benefit) expense of $(1,379), $(1,884), $(4,080), and $35,955, respectively(1) | [1] | 4,366 | 5,966 | 12,924 | (113,858) |
Net change in unfunded pension liability | |||||
Change in unfunded pension liability related to unrealized gain and prior service cost, net of tax expense of $16, $10, $44, and $27, respectively | (51) | (31) | (140) | (86) | |
Net change in cash flow hedge | |||||
Net unrealized loss arising during the period, net of tax benefit of $508, $—, $869, and $—, respectively | (1,608) | 0 | (2,752) | 0 | |
Amortization of unrealized gain on terminated cash flow hedges, net of tax expense of $9, $13, $34, and $38, respectively | (28) | (41) | (107) | (120) | |
Net change in cash flow hedge | (1,636) | (41) | (2,859) | (120) | |
Net change in equity method investments | |||||
Net change in other comprehensive income of equity method investments, net of tax expense of $61, $8, $28, and $67, respectively | 192 | 25 | 88 | 213 | |
Net current-period other comprehensive (loss) income | (124,652) | (196,601) | (104,867) | (677,711) | |
Total comprehensive (loss) income | $ (50,486) | $ (123,219) | $ 100,381 | $ (539,785) | |
[1]Includes $119.8 million, net of tax benefit, of unrealized losses on transferred investment securities with a book value of $1.1 billion from available-for-sale to held-to-maturity that were transferred in June 2022. |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Unrealized gains (losses) | $ (40,270) | $ (63,954) | $ (36,278) | $ (178,061) |
Amortization of unrealized (gains) losses on securities reclassified to held-to-maturity, tax (benefit) expense | (1,379) | (1,884) | (4,080) | 35,955 |
Change in unfunded pension liability related to unrealized loss, prior service cost and transition obligation, tax benefit | (16) | (10) | (44) | (27) |
Reclassification adjustment related to derivatives, tax expense | (508) | 0 | (869) | 0 |
Amortization of unrealized gain on terminated cash flow hedges, tax benefit | (9) | (13) | (34) | (38) |
Equity method investment tax benefit | $ 61 | $ 8 | $ 28 | 67 |
Fannie Mae (FNMA) mortgage-backed securities (MBS) | ||||
Amortization of unrealized (gains) losses on securities reclassified to held-to-maturity, tax (benefit) expense | 119,800 | |||
Securities transferred to held-to-maturity from available-for-sale, book value | $ 1,100,000 |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets: | ||
Cash and due from banks | $ 260,200 | $ 332,961 |
Cash in non-owned ATMs | 345,754 | 499,017 |
Interest-bearing deposits in other banks including collateral (restricted cash) of $5,010 at September 30, 2023 and $4,650 at December 31, 2022 | 5,526 | 5,280 |
Total cash, cash equivalents, and restricted cash | 611,480 | 837,258 |
Investment securities, available-for-sale (amortized cost of $4,584,190 at September 30, 2023 and $4,834,550 at December 31, 2022 | 3,691,541 | 4,093,060 |
Investment securities, held-to-maturity, net of allowance for credit losses of $8 at September 30, 2023 and $10 at December 31, 2022 (fair value $927,680 at September 30, 2023 and $1,040,104 at December 31, 2022) | 1,068,871 | 1,111,619 |
Other investments | 21,741 | 26,120 |
Loans, held for sale at fair value | 36,658 | 42,985 |
Loans and leases, net of allowance for credit losses of $175,988 at September 30, 2023 and $151,861 at December 31, 2022 | 12,502,404 | 11,759,992 |
Bank owned life insurance | 101,424 | 101,935 |
Stock in Federal Home Loan Bank (FHLB) of Pittsburgh at cost | 12,199 | 24,116 |
Other real estate owned | 298 | 833 |
Accrued interest receivable | 81,909 | 74,448 |
Premises and equipment | 105,001 | 115,603 |
Goodwill | 885,898 | 883,637 |
Intangible assets | 122,574 | 128,595 |
Other assets | 798,994 | 714,554 |
Total assets | 20,040,992 | 19,914,755 |
Deposits: | ||
Noninterest-bearing | 4,913,517 | 5,739,647 |
Interest-bearing | 11,072,852 | 10,463,922 |
Total deposits | 15,986,369 | 16,203,569 |
Federal funds purchased | 25,000 | 0 |
FHLB advances | 0 | 350,000 |
Trust preferred borrowings | 90,589 | 90,442 |
Senior and subordinated debt | 218,342 | 248,169 |
Other borrowed funds | 583,902 | 38,283 |
Accrued interest payable | 42,481 | 5,174 |
Other liabilities | 858,931 | 777,232 |
Total liabilities | 17,805,614 | 17,712,869 |
Stockholders’ Equity: | ||
Common stock $0.01 par value, 90,000,000 shares authorized; issued 76,043,902 at September 30, 2023 and 75,921,997 at December 31, 2022 | 761 | 759 |
Capital in excess of par value | 1,981,474 | 1,974,210 |
Accumulated other comprehensive loss | (780,711) | (675,844) |
Retained earnings | 1,588,858 | 1,411,243 |
Treasury stock at cost, 15,316,263 shares at September 30, 2023 and 14,310,085 shares at December 31, 2022 | (547,587) | (505,255) |
Total stockholders’ equity of WSFS | 2,242,795 | 2,205,113 |
Noncontrolling interest | (7,417) | (3,227) |
Total stockholders' equity | 2,235,378 | 2,201,886 |
Total liabilities and stockholders' equity | $ 20,040,992 | $ 19,914,755 |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Interest-bearing deposits in banks and other financial institutions, collateral | $ 5,010 | $ 4,650 |
Amortized cost | 4,584,190 | 4,834,550 |
Allowance for credit losses | 8 | 10 |
Held-to-maturity securities, fair value | 927,680 | 1,040,104 |
Allowance for credit losses | $ 175,988 | $ 151,861 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 90,000,000 | 90,000,000 |
Common stock, issued (in shares) | 76,043,902 | 75,921,997 |
Treasury stock, shares (in shares) | 15,316,263 | 14,310,085 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Total Stockholders' Equity of WSFS | Common Stock | Capital in Excess of Par Value | Accumulated Other Comprehensive Loss | Retained Earnings | Treasury Stock | Non-controlling Interest | |
Beginning balance (in shares) at Dec. 31, 2021 | 57,695,676 | ||||||||
Beginning balance at Dec. 31, 2021 | $ 1,937,016 | $ 1,939,099 | $ 577 | $ 1,058,997 | $ (37,768) | $ 1,224,614 | $ (307,321) | $ (2,083) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 138,213 | 137,926 | 137,926 | 287 | |||||
Other comprehensive loss | (677,711) | (677,711) | (677,711) | ||||||
Cash dividend | (26,501) | (26,501) | (26,501) | ||||||
Contributions from noncontrolling shareholders | (53) | (53) | |||||||
Issuance of common stock including proceeds from exercise of common stock options (in shares) | 83,830 | ||||||||
Issuance of common stock including proceeds from exercise of common stock options | 2,519 | 2,519 | $ 1 | 2,518 | |||||
Issuance of common stock in acquisition of BMT (in shares) | 18,116,848 | ||||||||
Issuance of common stock in acquisition of BMT | 908,016 | 908,016 | $ 181 | 907,835 | |||||
Noncontrolling interest assumed in acquisition | (913) | (913) | |||||||
Stock-based compensation expense | 4,427 | 4,427 | 4,427 | ||||||
Repurchases of common stock | [1] | (184,182) | (184,182) | (2,149) | (182,033) | ||||
Ending balance (in shares) at Sep. 30, 2022 | 75,896,354 | ||||||||
Ending balance at Sep. 30, 2022 | 2,100,831 | 2,103,593 | $ 759 | 1,971,628 | (715,479) | 1,336,039 | (489,354) | (2,762) | |
Beginning balance (in shares) at Jun. 30, 2022 | 75,870,300 | ||||||||
Beginning balance at Jun. 30, 2022 | 2,312,876 | 2,315,360 | $ 759 | 1,968,175 | (518,878) | 1,272,192 | (406,888) | (2,484) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 73,344 | 73,382 | 73,382 | (38) | |||||
Other comprehensive loss | (196,601) | (196,601) | (196,601) | ||||||
Cash dividend | (9,535) | (9,535) | (9,535) | ||||||
Contributions from noncontrolling shareholders | (240) | (240) | |||||||
Issuance of common stock including proceeds from exercise of common stock options (in shares) | 26,054 | ||||||||
Issuance of common stock including proceeds from exercise of common stock options | 2,087 | 2,087 | 2,087 | ||||||
Stock-based compensation expense | 1,366 | 1,366 | 1,366 | ||||||
Repurchases of common stock | [2] | (82,466) | (82,466) | (82,466) | |||||
Ending balance (in shares) at Sep. 30, 2022 | 75,896,354 | ||||||||
Ending balance at Sep. 30, 2022 | 2,100,831 | 2,103,593 | $ 759 | 1,971,628 | (715,479) | 1,336,039 | (489,354) | (2,762) | |
Beginning balance (in shares) at Dec. 31, 2022 | 75,921,997 | ||||||||
Beginning balance at Dec. 31, 2022 | 2,201,886 | 2,205,113 | $ 759 | 1,974,210 | (675,844) | 1,411,243 | (505,255) | (3,227) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 205,520 | 205,248 | 205,248 | 272 | |||||
Other comprehensive loss | (104,867) | (104,867) | (104,867) | ||||||
Cash dividend | (27,633) | (27,633) | (27,633) | ||||||
Distributions to noncontrolling shareholders | (4,462) | (4,462) | |||||||
Issuance of common stock including proceeds from exercise of common stock options (in shares) | 121,905 | ||||||||
Issuance of common stock including proceeds from exercise of common stock options | 2,420 | 2,420 | $ 2 | 2,418 | |||||
Stock-based compensation expense | 7,211 | 7,211 | 7,211 | ||||||
Repurchases of common stock | [3] | (44,697) | (44,697) | (2,365) | (42,332) | ||||
Ending balance (in shares) at Sep. 30, 2023 | 76,043,902 | ||||||||
Ending balance at Sep. 30, 2023 | 2,235,378 | 2,242,795 | $ 761 | 1,981,474 | (780,711) | 1,588,858 | (547,587) | (7,417) | |
Beginning balance (in shares) at Jun. 30, 2023 | 76,021,963 | ||||||||
Beginning balance at Jun. 30, 2023 | 2,307,384 | 2,314,659 | $ 760 | 1,977,945 | (656,059) | 1,523,849 | (531,836) | (7,275) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 74,263 | 74,166 | 74,166 | 97 | |||||
Other comprehensive loss | (124,652) | (124,652) | (124,652) | ||||||
Cash dividend | (9,157) | (9,157) | (9,157) | ||||||
Distributions to noncontrolling shareholders | (239) | (239) | |||||||
Issuance of common stock including proceeds from exercise of common stock options (in shares) | 21,939 | ||||||||
Issuance of common stock including proceeds from exercise of common stock options | 2,058 | 2,058 | $ 1 | 2,057 | |||||
Stock-based compensation expense | 1,472 | 1,472 | 1,472 | ||||||
Repurchases of common stock | [4] | (15,751) | (15,751) | (15,751) | |||||
Ending balance (in shares) at Sep. 30, 2023 | 76,043,902 | ||||||||
Ending balance at Sep. 30, 2023 | $ 2,235,378 | $ 2,242,795 | $ 761 | $ 1,981,474 | $ (780,711) | $ 1,588,858 | $ (547,587) | $ (7,417) | |
[1]Repurchase of common stock includes 3,789,137 shares repurchased in connection with the Company's share repurchase program approved by the Board of Directors and 104,965 shares withheld to cover tax liabilities.[2]Repurchase of common stock includes 1,664,550 shares repurchased in connection with the Company's share repurchase program approved by the Board of Directors, and 4,872 shares withheld to cover tax liabilities.[3]Repurchase of common stock includes 1,006,178 shares repurchased in connection with the Company's share repurchase program approved by the Board of Directors, and 45,489 shares withheld to cover tax liabilities.[4]Repurchase of common stock includes 386,900 shares repurchased in connection with the Company's share repurchase program approved by the Board of Directors. |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Cash dividend (in dollars per share) | $ 0.15 | $ 0.15 | $ 0.45 | $ 0.41 |
Shares withheld for tax liabilities (in shares) | 45,489 | 104,965 | ||
Treasury Stock | ||||
Repurchase of common stock (in shares) | 386,900 | 1,664,550 | 1,006,178 | 3,789,137 |
Shares withheld for tax liabilities (in shares) | 4,872 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Operating activities: | ||
Net income | $ 205,520 | $ 138,213 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for credit losses | 63,255 | 34,693 |
Depreciation of premises and equipment, net | 13,552 | 20,009 |
Accretion of fees and discounts, net | (20,891) | (16,965) |
Amortization of intangible assets | 11,596 | 14,505 |
Amortization of right-of-use lease assets | 11,559 | 14,715 |
Decrease in operating lease liability | (9,328) | (12,856) |
Income from mortgage banking activities, net | (3,680) | (6,529) |
Loss (gain) on sale of other real estate owned and valuation adjustments, net | 195 | (235) |
Stock-based compensation expense | 7,211 | 4,427 |
Unrealized loss (gain) on equity investments, net | 9 | (5,988) |
Deferred income tax benefit | (1,681) | (6,439) |
Increase in accrued interest receivable | (7,461) | (11,096) |
Decrease in other assets | (42,228) | (39,991) |
Origination of loans held for sale | (206,979) | (453,952) |
Proceeds from sales of loans held for sale | 144,990 | 421,098 |
Decrease (increase) in value of bank owned life insurance | 511 | (437) |
Increase in capitalized interest, net | (1,702) | (1,650) |
Increase in accrued interest payable | 37,307 | 1,590 |
Increase in other liabilities | 86,052 | 313,791 |
Net cash provided by operating activities | 287,807 | 406,903 |
Investing activities: | ||
Purchases of investment securities held to maturity | 0 | (120,868) |
Repayments, maturities and calls of investment securities held-to-maturity | 57,826 | 49,768 |
Purchases of investment securities available-for-sale | (21,080) | (1,218,022) |
Repayments, maturities and calls of investment securities available-for-sale | 269,156 | 911,125 |
Proceeds from bank-owned life insurance death benefit | 0 | 1,437 |
Net (increase) decrease in loans | (486,508) | 11,642 |
Net cash (paid for) from business combinations | (3,000) | 573,745 |
Purchase of loans held-for-investment | (238,047) | (252,185) |
Purchases of stock of Federal Home Loan Bank of Pittsburgh | (119,479) | (15,318) |
Redemptions of stock of Federal Home Loan Bank of Pittsburgh | 131,396 | 6 |
Sales of other real estate owned | 833 | 1,844 |
Investment in premises and equipment | (2,953) | (7,665) |
Sales of premises and equipment | 3 | 891 |
Net cash used in investing activities | (411,853) | (63,600) |
Financing activities: | ||
Net decrease in demand and saving deposits | (816,546) | (466,105) |
Increase (decrease) in time deposits | 612,672 | (132,825) |
Decrease in brokered deposits | (33,486) | (37,704) |
Receipts from FHLB advances | 5,945,000 | 458,100 |
Repayments of FHLB advances | (6,295,000) | (458,100) |
Receipts from federal funds purchased | 6,033,000 | 310,001 |
Repayments of federal funds purchased | (6,008,000) | (310,001) |
Receipts from Bank Term Funding Program | 565,000 | 0 |
Distributions to noncontrolling shareholders | (4,462) | (53) |
Cash dividend | (27,633) | (26,501) |
Issuance of common stock including proceeds from exercise of common stock options | 2,420 | 2,519 |
Redemption of senior and subordinated debt | (30,000) | 0 |
Repurchases of common shares | (44,697) | (184,182) |
Net cash used in financing activities | (101,732) | (844,851) |
Decrease in cash, cash equivalents, and restricted cash | (225,778) | (501,548) |
Cash, cash equivalents, and restricted cash at beginning of period | 837,258 | 1,532,939 |
Cash, cash equivalents, and restricted cash at end of period | 611,480 | 1,031,391 |
Cash paid during the period for: | ||
Interest | 135,008 | 16,886 |
Income taxes | 72,789 | 26,237 |
Non-cash information: | ||
Loans transferred to other real estate owned | 298 | 502 |
Loans transferred to portfolio from held-for-sale at fair value | 68,022 | 84,829 |
Held-to-maturity securities purchased, not settled | 0 | 5,136 |
Securities transferred to held-to-maturity from available-for-sale at fair value | 0 | 931,421 |
Fair value of assets acquired, net of cash received | 7,993 | 4,713,544 |
Fair value of liabilities assumed | $ 4,993 | $ 4,379,273 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | 1. BASIS OF PRESENTATION General These unaudited Consolidated Financial Statements include the accounts of WSFS Financial Corporation (WSFS, and together with its subsidiaries, the Company), and its consolidated subsidiaries. WSFS’ primary subsidiary is Wilmington Savings Fund Society, FSB (WSFS Bank or the Bank). As of September 30, 2023, the other subsidiaries of WSFS include The Bryn Mawr Trust Company of Delaware (BMT-DE), Bryn Mawr Capital Management, LLC (BMCM), WSFS Wealth Management, LLC (Powdermill ® ), WSFS SPE Services, LLC, and 601 Perkasie, LLC. The Company also has three unconsolidated subsidiaries: WSFS Capital Trust III, Royal Bancshares Capital Trust I, and Royal Bancshares Capital Trust II . WSFS Bank has two wholly-owned subsidiaries: Beneficial Equipment Finance Corporation (BEFC) and 1832 Holdings, Inc. , and one majority-owned subsidiary, NewLane Finance Company (NewLane Finance ® ). On January 1, 2023, WSFS completed the merger and brand conversion of WSFS Capital Management, LLC (West Capital) and Cypress Capital Management, LLC and renamed the combined entity Bryn Mawr Capital Management, LLC. BMCM is registered as an investment advisor with the U.S. Securities and Exchange Commission and is a wholly-owned subsidiary of WSFS. Overview Founded in 1832, the Bank is one of the ten oldest bank and trust companies continuously operating under the same name in the United States (U.S.). The Company provides residential and commercial real estate, commercial and consumer lending services, as well as consumer deposit and treasury management services. The Company's core banking business is commercial lending funded primarily by customer-generated deposits. In addition, the Company offers a variety of wealth management and trust services to individuals, institutions and corporations. The Federal Deposit Insurance Corporation (FDIC) insures the customers’ deposits to their legal maximums. The Company serves its customers primarily from 116 offices located in Pennsylvania (59 ), Delaware ( 40) , New Jersey (14 ), Florida (1), Nevada (1) and Virginia (1) , its ATM network, website at www.wsfsbank.com and mobile app. Information on the website is not incorporated by reference into this Quarterly Report on Form 10-Q. Basis of Presentation In preparing the unaudited Consolidated Financial Statements, the Company is required to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. Amounts subject to significant estimates include the allowance for credit losses (including loans and leases held for investment, investment securities available-for-sale and held-to-maturity), lending-related commitments, goodwill, intangible assets, post-retirement benefit obligations, the fair value of financial instruments, and income taxes. Among other effects, changes to these estimates could result in future impairments of investment securities, goodwill and intangible assets, the establishment of additional allowance and lending-related commitment reserves, changes in the fair value of financial instruments, as well as increased post-retirement benefits and income tax expense. The Company's accounting and reporting policies conform to Generally Accepted Accounting Principles in the U.S. (GAAP), prevailing practices within the banking industry for interim financial information and Rule 10-01 of SEC Regulation S-X (Rule 10-01). Rule 10-01 does not require us to include all information and notes that would be required in audited financial statements. Certain prior period amounts have been reclassified to conform with current period presentation. Operating results for the periods presented are not necessarily indicative of the results that may be expected for any future quarters or for the year ending December 31, 2023. These unaudited, interim Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and related notes included in the Annual Report on Form 10-K for the year ended December 31, 2022 (the 2022 Annual Report on Form 10-K) that was filed with the SEC on February 28, 2023 and is available at www.sec.gov or on the website at www.wsfsbank.com . All significant intercompany accounts and transactions were eliminated in consolidation. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SIGNIFICANT ACCOUNTING POLICIES: The significant accounting policies used in preparation of the Consolidated Financial Statements are disclosed in the Company's 2022 Annual Report on Form 10-K. Those significant accounting policies remain unchanged at September 30, 2023, except for the following: Past Due and Nonaccrual Loans Past due loans are defined as loans contractually past due 90 days or more as to principal or interest payments. Past due loans 90 days or more that remain in accrual status are considered well secured and in the process of collection. Nonaccruing loans are those on which the accrual of interest has ceased. Loans are placed on nonaccrual status immediately if, in the opinion of the Company, collection is doubtful, or when principal or interest is past due 90 days or more and the loan is not well secured and in the process of collection. Interest accrued but not collected at the date a loan is placed on nonaccrual status is reversed and charged against interest income. In addition, the amortization of net deferred loan fees is suspended when a loan is placed on nonaccrual status. Subsequent cash receipts are applied either to the outstanding principal balance or recorded as interest income, depending on the Company’s assessment of the ultimate collectability of principal and interest. Loans are returned to accrual status when the Company assesses that the borrower has the ability to make all principal and interest payments in accordance with the terms of the loan (i.e., a consistent repayment record, generally six consecutive payments, has been demonstrated). For loans greater than 90 days past due, unless loans are well-secured and collection is imminent, their respective reserves are generally charged off once the loss has been confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged off and expected to be charged off. A loan, for which the terms have been modified in the current reporting period in the form of principal forgiveness, an interest rate reduction, an other than-insignificant payment delay, or a term extension to a borrower experiencing financial difficulty, is considered a troubled loan. The assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification. Principal balances are generally not forgiven when a loan is modified as a troubled loan. Nonaccruing troubled loans remain in nonaccrual status until there has been a period of sustained repayment performance demonstrated and repayment is reasonably assured. Since the effect of most troubled loans are already included in the Company’s estimate of expected credit losses, a change to the allowance for credit losses is generally not recorded upon modification. For additional detail regarding past due and nonaccrual loans, see Note 7. Allowance for Credit Losses - Loans and Leases The Company establishes its allowance in accordance with guidance provided in ASC 326, Financial Instruments - Credit Losses . The allowance for credit losses includes quantitative and qualitative factors that comprise the Company's current estimate of expected credit losses, including the Company's portfolio mix and segmentation, modeling methodology, historical loss experience, relevant available information from internal and external sources relating to qualitative adjustment factors, prepayment speeds and reasonable and supportable forecasts about future economic conditions. The Company's portfolio segments, established based on similar risk characteristics and loss behaviors, are: • Commercial Loans and Leases: Commercial and industrial - real estate secured, commercial and industrial - non-real estate secured, owner-occupied commercial, commercial mortgages, construction and commercial small business leases, and • Residential and Consumer Loans: Residential mortgage, equity secured lines and loans, installment loans, unsecured lines of credit, originated education loans and previously acquired education loans. Expected credit losses are net of expected recoveries and estimated over the contractual term, adjusted for expected prepayments. The contractual term excludes any extensions, renewals and modifications unless they are not unconditionally cancellable. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Expected prepayments are based on historical experience and considers adjustments for current and future economic conditions. The allowance includes two primary components: (i) an allowance established on loans which share similar risk characteristics collectively evaluated for credit losses (collective basis) and (ii) an allowance established on loans which do not share similar risk characteristics with any loan segment and are individually evaluated for credit losses (individual basis). Loans that share similar risk characteristics are collectively reviewed for credit loss and are evaluated based on historical loss experience, adjusted for current economic conditions and future economic forecasts. Estimated losses are determined differently for commercial and residential and consumer loans, and each portfolio segment is further segmented by internally assessed risk ratings. The Company uses a single scenario third-party economic forecast to adjust the calculated historical loss rates of the portfolio segments to incorporate the effects of current and future economic conditions. The Company's economic forecast considers the general health of the economy, the interest rate environment, real estate pricing and market risk. The Company's forecast extends out 6 quarters (the forecast period) and reverts to the historical loss rates on a straight-line basis over 4 quarters (the reversion period) as it believes this to be reasonable and supportable in the current environment. The economic forecast and reversion periods will be evaluated periodically by the Company and updated as appropriate. The historical loss rates for commercial loans are estimated by determining the probability of default (PD) and expected loss given default (LGD) and are applied to the loans' exposure at default. The probability of default is calculated based on the historical rate of migration to an event of credit loss during the look-back period. The historical loss rates for consumer loans is calculated based on average net loss rates over the same look-back period. The current look-back period is 51 quarters which ensures historical loss rates are adequately considering losses within a full credit cycle. Loans that do not share similar risk characteristics with any loan segments are evaluated on an individual basis. These loans, which may include troubled loans, are not included in the collective basis evaluation. When it is probable the Company will not collect all principal and interest due according to their contractual terms, which is assessed based on the credit characteristics of the loan and/or payment status, these loans are individually reviewed and measured for potential credit loss. The amount of the potential credit loss is measured using any of the following three methods: (i) the present value of expected future cash flows discounted at the loan’s effective interest rate; (ii) the fair value of collateral if the loan is collateral dependent; or (iii) the loan’s observable market price. If the measured fair value of the loan is less than the amortized cost basis of the loan, an allowance for credit loss is recorded. For collateral dependent loans, the expected credit losses at the individual asset level are the difference between the collateral's fair value (less cost to sell) and the amortized cost. Qualitative adjustment factors consider various internal and external conditions which are allocated among loan segments and take into consideration: • Current underwriting policies, staff and portfolio concentrations, • Risk rating accuracy, credit and administration, • Internal risk emergence (including internal trends of delinquency, and criticized loans by segment), • Economic forecasts and conditions - locally and nationally (including market trends impacting collateral values), which is separate from or in addition to the third-party economic forecast described above, and • Competitive environment, as it could impact loan structure and underwriting. These factors are based on their relative standing compared to the period in which historical losses are used in quantitative reserve estimates and current directional trends, and reasonable and supportable forecasts. Qualitative factors can add to or subtract from quantitative reserves. The Company's loan officers and risk managers meet at least quarterly to discuss and review the conditions and risks associated with individual problem loans. In addition, various regulatory agencies periodically review the Company's loan ratings and allowance for credit losses and the Bank's internal loan review department performs recurring loan reviews. Accrued interest receivable on loans is excluded from the estimate of credit losses and is included in Accrued interest receivable on the unaudited Consolidated Statements of Financial Condition. For additional detail regarding the allowance for credit losses and the provision for credit losses, see Note 7. RECENT ACCOUNTING PRONOUNCEMENTS Accounting Guidance Adopted in 2023 ASU No. 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures: In March 2022, the FASB issued ASU No. 2022-02 , Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The guidance eliminates the accounting guidance for troubled debt restructurings by creditors (ASC 310-40) while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. The guidance also requires that an entity disclose current-period write-offs by year of origination for financing receivables and net investments in leases within the scope of Topic 326. The Company adopted this guidance prospectively on January 1, 2023. For further details on the impact of the adoption and accounting policies, see updated Significant Accounting Policies, as described above, and troubled loans disclosures in Note 7 - Allowance for Credit Losses and Credit Quality Information . Accounting Guidance Pending Adoption as of September 30, 2023 ASU No. 2023-01, Leases (Topic 842) Common Control Agreements: In March 2023, the FASB issued ASU No. 2023-01 , Leases (Topic 842) Common Control Agreements. The amendment clarifies the accounting for leasehold improvements associated with common control leases by allowing the lessee to amortize the leasehold improvements over the useful life of the common control group’s use of the underlying asset, regardless of the lease term. The guidance is effective for fiscal years beginning after December 15, 2023. Early adoption is permitted. Adoption is required on a modified retrospective basis, consistent with the Company's adoption of Topic 842. The Company does not expect this update to have a material impact on the Consolidated Financial Statements. ASU No. 2023-02, Investments—Equity Method and Joint Ventures (Topic 323) Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method: In March 2023, The FASB issued ASU 2023-02, Investments—Equity Method and Joint Ventures (Topic 323) Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method . The amendments permit reporting entities to elect to account for any equity investments in a tax credit program using the proportional amortization method if certain conditions are met. The amendments are effective for fiscal years beginning after December 15, 2023. Early adoption is permitted. Adoption is required on a prospective, modified retrospective, or retrospective basis depending on the amendment. The Company does not expect this update to have a material impact on the Consolidated Financial Statements. |
NONINTEREST INCOME
NONINTEREST INCOME | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
NONINTEREST INCOME | 3. NONINTEREST INCOME Credit/debit card and ATM income The following table presents the components of credit/debit card and ATM income: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2023 2022 2023 2022 Bailment fees $ 9,982 $ 6,306 $ 28,051 $ 13,105 Interchange fees 3,885 3,870 11,764 11,859 Other card and ATM fees 1,002 817 2,845 2,482 Total credit/debit card and ATM income $ 14,869 $ 10,993 $ 42,660 $ 27,446 Credit/debit card and ATM income is composed of bailment fees, interchange fees, and other card and ATM fees. Bailment fees are earned from bailment arrangements with customers. Bailment arrangements are legal relationships in which property is delivered to another party without a transfer of ownership. The party who transferred the property (the bailor) retains ownership interest of the property. In the event that the bailee files for bankruptcy protection, the property is not included in the bailee's assets. The bailee pays an agreed-upon fee for the use of the bailor's property in exchange for the bailor allowing use of the assets at the bailee's site. Bailment fees are earned from cash that is made available for customers' use at an offsite location, such as cash located in an ATM at a customer's place of business. These fees are typically indexed to a market interest rate. This revenue stream generates fee income through monthly billing for bailment services. Credit/debit card and ATM income also includes interchange fees. Interchange fees are paid by a merchant's bank to a bank that issued a debit or credit card used in a transaction to compensate the issuing bank for the value and benefit the merchant receives from accepting electronic payments. These revenue streams generate fee income at the time a transaction occurs and are recorded as revenue at the time of the transaction. Investment management and fiduciary income The following table presents the components of investment management and fiduciary income: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2023 2022 2023 2022 Trust fees $ 22,062 $ 19,170 $ 64,514 $ 58,658 Wealth management and advisory fees 10,658 10,334 31,061 32,219 Total investment management and fiduciary income $ 32,720 $ 29,504 $ 95,575 $ 90,877 Investment management and fiduciary income is composed of trust fees and wealth management and advisory fees. Trust fees are based on revenue earned from custody, escrow, trustee and trustee related services on structured finance transactions; indenture trustee, administrative agent and collateral agent services to individuals, institutions and corporations; commercial domicile and independent director services; and investment and trustee services to families and individuals. Most fees are flat fees, except for a portion of personal and corporate trustee fees where the Company earns a percentage on the assets under management or assets held within a trust. This revenue stream primarily generates fee income through monthly, quarterly and annual billings for services provided. Wealth management and advisory fees consists of fees from Bryn Mawr Trust (excluding BMT-DE), BMCM, Powdermill ® , and WSFS Wealth ® Investments. Wealth management and advisory fees are based on revenue earned from services including asset management, financial planning, family office, and brokerage. The fees are based on the market value of assets, are assessed as a flat fee, or are brokerage commissions. This revenue stream primarily generates fee income through monthly, quarterly and annual billings for the services. Deposit service charges The following table presents the components of deposit service charges: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2023 2022 2023 2022 Service fees $ 4,382 $ 3,933 $ 12,833 $ 11,789 Return and overdraft fees 1,851 2,164 5,218 5,835 Other deposit service fees 301 165 799 534 Total deposit service charges $ 6,534 $ 6,262 $ 18,850 $ 18,158 Deposit service charges includes revenue earned from core deposit products, certificates of deposit, and brokered deposits. The Company generates fee revenues from deposit service charges primarily through service charges and overdraft fees. Service charges consist primarily of monthly account maintenance fees, treasury 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 September 30, Nine Months Ended September 30, (Dollars in thousands) 2023 2022 2023 2022 Managed service fees $ 5,301 $ 4,866 $ 15,316 $ 13,091 Currency preparation 1,331 1,104 3,955 2,904 ATM loss protection 643 681 1,938 1,963 Capital markets revenue 3,581 793 8,170 5,738 Miscellaneous products and services (1) 3,122 5,408 4,381 17,429 Total other income $ 13,978 $ 12,852 $ 33,760 $ 41,125 (1) Includes commissions income from BMT Insurance Advisors (BMTIA) in 2022. The BMTIA business was sold at the end of the second quarter of 2022. Other income consists of managed service fees, which are primarily courier fees related to treasury management, currency preparation, ATM loss protection, capital markets revenue, and other miscellaneous products and services offered by the Bank. These fees are primarily generated through monthly billings or at the time of the transaction. Capital markets revenue consists of fees related to interest rate swaps, risk participation agreements, foreign exchange contracts, letters of credit, and trade finance products and services offered by the Bank. Through its subsidiary BMTIA, the Bank earned commissions from the sale of insurance policies, which are generally calculated as a percentage of the policy premium, and contingent income, which is calculated based on the volume and performance of the policies held by each carrier. Obligations for the sale of insurance policies are generally satisfied at the point in time which the policy is executed and are recognized at the point in time in which the amounts are known and collection is reasonably assured. Performance metrics for contingent income are generally satisfied over time, not exceeding one year, and are recognized at the point in time in which the amounts are known and collection is reasonably assured. The Company's contracts with customers may include multiple performance obligations. For such arrangements, the Company allocates revenue to each performance obligation based on its relative standalone selling price. The Company generally determines standalone selling prices based on the prices charged to customers. Practical expedients and exemptions The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which the Company recognizes revenue at the amount to which it has the right to invoice for services performed. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 4. EARNINGS PER SHARE The following table shows the computation of basic and diluted earnings per share: Three Months Ended September 30, Nine Months Ended September 30, (Dollars and shares in thousands, except per share data) 2023 2022 2023 2022 Numerator: Net income attributable to WSFS $ 74,166 $ 73,382 $ 205,248 $ 137,926 Denominator: Weighted average basic shares 60,942 63,048 61,265 64,064 Dilutive potential common shares 97 180 103 219 Weighted average fully diluted shares 61,039 63,228 $ 61,368 $ 64,283 Earnings per share: Basic $ 1.22 $ 1.16 $ 3.35 $ 2.15 Diluted $ 1.22 $ 1.16 $ 3.34 $ 2.15 Outstanding common stock equivalents having no dilutive effect 18 2 18 7 Basic earnings per share is calculated by dividing Net income attributable to WSFS by the weighted-average basic shares outstanding. Diluted earnings per share is calculated by dividing Net income attributable to WSFS by the weighted-average fully diluted shares outstanding, using the treasury stock method. Fully diluted shares include the adjustment for the dilutive effect of common stock awards, which include outstanding stock options and unvested restricted stock units under the 2013 Incentive Plan and the 2018 Incentive Plan. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | 5. INVESTMENT SECURITIES Debt Securities The following tables detail the amortized cost, allowance for credit losses and the estimated fair value of the Company's investments in available-for-sale and held-to-maturity debt securities. None of the Company's investments in debt securities are classified as trading. September 30, 2023 (Dollars in thousands) Amortized Cost Gross Gross Allowance for Credit Losses Fair Available-for-Sale Debt Securities Collateralized mortgage obligation (CMO) $ 573,393 $ — $ 118,729 $ — $ 454,664 Fannie Mae (FNMA) mortgage-backed securities (MBS) 3,608,095 — 694,683 — 2,913,412 Freddie Mac (FHLMC) MBS 128,999 — 18,280 — 110,719 Ginnie Mae (GNMA) MBS 47,621 — 4,870 — 42,751 Government-sponsored enterprises (GSE) agency notes 226,082 — 56,087 — 169,995 $ 4,584,190 $ — $ 892,649 $ — $ 3,691,541 Held-to-Maturity Debt Securities (1) FNMA MBS $ 881,844 $ — $ 129,388 $ — $ 752,456 State and political subdivisions 187,035 24 11,827 8 175,224 $ 1,068,879 $ 24 $ 141,215 $ 8 $ 927,680 (1) Held-to-maturity securities transferred from available-for-sale are included in held-to-maturity at fair value basis at the time of transfer. The amortized cost of transferred held-to-maturity securities included net unrealized losses of $125.8 million at September 30, 2023, which are offset in Accumulated other comprehensive loss . At the time of transfer, there was no allowance for credit loss on the available-for-sale securities. Subsequent to transfer, the securities were evaluated for credit loss. December 31, 2022 (Dollars in thousands) Amortized Cost Gross Gross Allowance for Credit Losses Fair Available-for-Sale Debt Securities CMO $ 608,834 $ — $ 102,454 $ — $ 506,380 FNMA MBS 3,823,036 — 572,778 — 3,250,258 FHLMC MBS 135,554 — 13,555 — 121,999 GNMA MBS 39,116 — 2,978 — 36,138 GSE agency notes 228,010 — 49,725 — 178,285 $ 4,834,550 $ — $ 741,490 $ — $ 4,093,060 Held-to-Maturity Debt Securities (1) FNMA MBS $ 909,498 $ — $ 68,677 $ — $ 840,821 State and political subdivisions 201,631 532 3,372 10 198,781 Foreign bonds 500 2 — — 502 $ 1,111,629 $ 534 $ 72,049 $ 10 $ 1,040,104 (1) Held-to-maturity securities transferred from available-for-sale are included in held-to-maturity at fair value at the time of transfer. The amortized cost of transferred held-to-maturity securities included net unrealized losses of $142.8 million at December 31, 2022, which are offset in Accumulated other comprehensive loss . At the time of transfer, there was no allowance for credit loss on the available-for-sale securities. Subsequent to transfer, the securities were evaluated for credit loss. The scheduled maturities of available-for-sale debt securities at September 30, 2023 and December 31, 2022 are presented in the table below: Available-for-Sale Amortized Fair (Dollars in thousands) Cost Value September 30, 2023 (1) Within one year $ — $ — After one year but within five years 87,314 81,548 After five years but within ten years 577,578 465,454 After ten years 3,919,298 3,144,539 $ 4,584,190 $ 3,691,541 December 31, 2022 (1) Within one year $ — $ — After one year but within five years 83,014 77,499 After five years but within ten years 465,777 398,607 After ten years 4,285,759 3,616,954 $ 4,834,550 $ 4,093,060 (1) Actual maturities could differ from contractual maturities. As of September 30, 2023, the Company’s available-for-sale investment securities consisted of 964 securities, 964 of which were in an unrealized loss position. As of September 30, 2023, substantially all of the Corporation’s available-for-sale investment securities were mortgage-backed securities or collateral mortgage obligations which were issued or guaranteed by U.S. government-sponsored entities and agencies. As of September 30, 2023 and December 31, 2022, there were no holdings of securities of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10% of shareholders’ equity. The scheduled maturities of held-to-maturity debt securities at September 30, 2023 and December 31, 2022 are presented in the table below: Held-to-Maturity Amortized Fair (Dollars in thousands) Cost Value September 30, 2023 (1) Within one year $ — $ — After one year but within five years 9,793 9,373 After five years but within ten years 45,306 42,615 After ten years 1,013,780 875,692 $ 1,068,879 $ 927,680 December 31, 2022 (1) Within one year $ 731 $ 732 After one year but within five years 9,530 9,476 After five years but within ten years 46,170 45,944 After ten years 1,055,198 983,952 $ 1,111,629 $ 1,040,104 (1) Actual maturities could differ from contractual maturities. MBS may have expected maturities that differ from their contractual maturities. These differences arise because issuers may have the right to call securities and borrowers may have the right to prepay obligations with or without prepayment penalty. The estimated weighted average duration of MBS was 6.0 years at September 30, 2023. The held-to-maturity debt securities are not collateral-dependent securities as these are general obligation bonds issued by cities, states, counties, or other local and foreign governments. Investment securities with fair market values aggregating $3.3 billion and $2.8 billion were pledged as collateral for investment sweep repurchase agreements, municipal deposits, and other obligations as of September 30, 2023 and December 31, 2022, respectively. During the nine months ended September 30, 2023 and 2022, the Company had no sales of debt securities categorized as available-for-sale. As of September 30, 2023 and December 31, 2022, the Company's debt securities portfolio had remaining unamortized premiums of $59.2 million and $66.6 million, respectively, and unaccreted discounts of $21.9 million and $25.2 million, respectively. For debt securities in an unrealized loss position, the table below shows the gross unrealized losses and fair value by investment category and length of time that individual debt securities were in a continuous unrealized loss position at September 30, 2023. 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 $ — $ — $ 454,664 $ 118,729 $ 454,664 $ 118,729 FNMA MBS 8,792 467 2,904,620 694,216 2,913,412 694,683 FHLMC MBS 7 — 110,712 18,280 110,719 18,280 GNMA MBS 11,421 654 31,330 4,216 42,751 4,870 GSE agency notes — — 169,995 56,087 169,995 56,087 $ 20,220 $ 1,121 $ 3,671,321 $ 891,528 $ 3,691,541 $ 892,649 For debt securities in an unrealized loss position, the table below shows the gross unrealized losses and fair value by investment category and length of time that individual debt securities were in a continuous unrealized loss position at December 31, 2022. 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 $ 158,449 $ 13,855 $ 347,931 $ 88,599 $ 506,380 $ 102,454 FNMA MBS 1,237,560 145,752 2,012,698 427,026 3,250,258 572,778 FHLMC MBS 102,321 9,268 19,671 4,287 121,992 13,555 GNMA MBS 32,076 2,265 4,030 713 36,106 2,978 GSE agency notes — — 178,285 49,725 178,285 49,725 $ 1,530,406 $ 171,140 $ 2,562,615 $ 570,350 $ 4,093,021 $ 741,490 The Company does not have the intent to sell, nor is it more likely than not it will be required to sell these securities before it is able to recover the amortized cost basis. The unrealized losses are the result of changes in market interest rates subsequent to purchase, not credit loss, as these are highly rated agency securities with no expected credit loss, in the event of a default. As a result, there is no allowance for credit losses recorded for available-for-sale debt securities as of September 30, 2023. At September 30, 2023 and December 31, 2022, held-to-maturity debt securities had an amortized cost basis of $1.1 billion. The held-to-maturity debt security portfolio primarily consists of mortgage-backed securities which were issued or guaranteed by U.S. government-sponsored entities and agencies and highly rated municipal bonds. The Company monitors credit quality of its debt securities through credit ratings. The following table summarizes the amortized cost of debt securities held-to-maturity as of September 30, 2023, aggregated by credit quality indicator: (Dollars in thousands) FNMA MBS State and political subdivisions A+ rated or higher $ — $ 187,035 Not rated 881,844 — Ending balance $ 881,844 $ 187,035 The following table summarizes the amortized cost of debt securities held-to-maturity as of December 31, 2022, aggregated by credit quality indicator: (Dollars in thousands) FNMA MBS State and political subdivisions Foreign bonds A+ rated or higher $ — $ 201,631 $ 500 Not rated 909,498 — — Ending balance $ 909,498 $ 201,631 $ 500 The Company reviewed its held-to-maturity debt securities by major security type for potential credit losses. There was no activity in the allowance for credit losses for FNMA MBS and foreign bond debt securities for the nine months ended September 30, 2023 and 2022. The following table presents the activity in the allowance for credit losses for state and political subdivisions debt securities for the three and nine months ended September 30, 2023 and 2022: Three months ended September 30, Nine months ended September 30, (Dollars in thousands) 2023 2022 2023 2022 Allowance for credit losses: Beginning balance $ 8 $ 6 $ 10 $ 4 Provision for (recovery of) credit losses — 4 (2) 6 Ending balance $ 8 $ 10 $ 8 $ 10 Accrued interest receivable of $1.7 million and $2.4 million as of September 30, 2023 and December 31, 2022, respectively, for held-to-maturity debt securities were excluded from the evaluation of allowance for credit losses. There were no nonaccrual or past due held-to-maturity debt securities as of September 30, 2023 and December 31, 2022. Equity Investments The Company had equity investments at fair value of $21.7 million and $26.1 million as of September 30, 2023 and December 31, 2022, respectively. During the three and nine months ended September 30, 2023, the Company recognized $0.7 million of net gains and $1.0 million of net losses, respectively, related to our equity method investments within Other income on the unaudited Consolidated Statements of Income. During the nine months ended September 30, 2022, total nets gains on equity investments of $6.0 million were recorded, driven by an unrealized gain on the Company's investment in CRED.ai presented within Unrealized gain on equity investment, net in the Consolidated Statements of Income. During the three and nine months ended September 30, 2022, the Company recognized $2.9 million and $4.5 million, respectively, of net gains related to our equity method investments within Other income on the unaudited Consolidated Statements of Income. |
LOANS AND LEASES
LOANS AND LEASES | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
LOANS AND LEASES | 6. LOANS AND LEASES The following table shows the Company's loan and lease portfolio by category: (Dollars in thousands) September 30, 2023 December 31, 2022 Commercial and industrial $ 2,644,039 $ 2,575,345 Owner-occupied commercial 1,924,171 1,809,582 Commercial mortgages 3,645,723 3,351,084 Construction 1,043,568 1,044,049 Commercial small business leases 605,698 558,981 Residential (1) 858,111 761,882 Consumer (2) 1,957,082 1,810,930 12,678,392 11,911,853 Less: Allowance for credit losses 175,988 151,861 Net loans and leases $ 12,502,404 $ 11,759,992 (1) Includes reverse mortgages at fair value of $2.8 million at September 30, 2023 and $2.4 million at December 31, 2022. (2) Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans. Accrued interest receivable on loans and leases was $66.6 million and $59.3 million at September 30, 2023 and December 31, 2022, respectively. Accrued interest receivable on loans and leases was excluded from the evaluation of allowance for credit losses. |
ALLOWANCE FOR CREDIT LOSSES AND
ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY INFORMATION | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY INFORMATION | 7. ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY INFORMATION The following tables provide the activity of allowance for credit losses and loan balances for the three and nine months ended September 30, 2023 and 2022. The increase was primarily due to the impacts of the economic uncertainty and forecast and net loan growth. (Dollars in thousands) Commercial and Industrial (1) Owner-occupied Commercial Construction Residential (2) Consumer (3) Total Three months ended September 30, 2023 Allowance for credit losses Beginning balance $ 62,783 $ 6,335 $ 31,937 $ 9,228 $ 5,043 $ 56,543 $ 171,869 Charge-offs (10,675) — (300) — — (5,872) (16,847) Recoveries 2,124 14 1 1 55 357 2,552 Provision 7,438 1,501 1,549 2,088 253 5,585 18,414 Ending balance $ 61,670 $ 7,850 $ 33,187 $ 11,317 $ 5,351 $ 56,613 $ 175,988 Nine months ended September 30, 2023 Allowance for credit losses Beginning balance $ 59,394 $ 6,019 $ 21,473 $ 6,987 $ 4,668 $ 53,320 $ 151,861 Charge-offs (30,496) (184) (300) — (33) (15,374) (46,387) Recoveries 5,554 50 4 532 211 906 7,257 Provision 27,218 1,965 12,010 3,798 505 17,761 63,257 Ending balance $ 61,670 $ 7,850 $ 33,187 $ 11,317 $ 5,351 $ 56,613 $ 175,988 Period-end allowance allocated to: Loans evaluated on an individual basis $ 1,054 $ 161 $ — $ 1,600 $ — $ — $ 2,815 Loans evaluated on a collective basis 60,616 7,689 33,187 9,717 5,351 56,613 173,173 Ending balance $ 61,670 $ 7,850 $ 33,187 $ 11,317 $ 5,351 $ 56,613 $ 175,988 Period-end loan balances: Loans evaluated on an individual basis $ 26,355 $ 16,442 $ 7,918 $ 4,828 $ 5,838 $ 1,798 $ 63,179 Loans evaluated on a collective basis 3,223,382 1,907,729 3,637,805 1,038,740 849,502 1,955,284 12,612,442 Ending balance $ 3,249,737 $ 1,924,171 $ 3,645,723 $ 1,043,568 $ 855,340 $ 1,957,082 $ 12,675,621 (1) Includes commercial small business leases. (2) Period-end loan balance excludes reverse mortgages at fair value of $2.8 million. (3) Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans. (Dollars in thousands) Commercial and Industrial (1) Owner - Commercial Construction Residential (2) Consumer (3) Total Three months ended September 30, 2022 Allowance for credit losses Beginning balance $ 60,921 $ 5,510 $ 23,663 $ 5,058 $ 4,988 $ 41,830 $ 141,970 Charge-offs (5,120) — (544) — — (1,834) (7,498) Recoveries 3,194 4 101 653 207 114 4,273 Provision (credit) 889 489 (1,686) 788 (377) 7,347 7,450 Ending balance $ 59,884 $ 6,003 $ 21,534 $ 6,499 $ 4,818 $ 47,457 $ 146,195 Nine months ended September 30, 2022 Allowance for loan losses Beginning balance $ 49,967 $ 4,574 $ 11,623 $ 1,903 $ 3,352 $ 23,088 $ 94,507 Initial allowance on acquired PCD loans 22,614 595 2,684 71 61 78 26,103 Charge-offs (11,308) (179) (581) — (186) (4,062) (16,316) Recoveries 4,667 271 223 653 737 663 7,214 (Credit) provision (4) (6,056) 742 7,585 3,872 854 27,690 34,687 Ending balance $ 59,884 $ 6,003 $ 21,534 $ 6,499 $ 4,818 $ 47,457 $ 146,195 Period-end allowance allocated to: Loans evaluated on an individual basis $ 5,348 $ — $ — $ — $ — $ — $ 5,348 Loans evaluated on a collective basis 54,536 6,003 21,534 6,499 4,818 47,457 140,847 Ending balance $ 59,884 $ 6,003 $ 21,534 $ 6,499 $ 4,818 $ 47,457 $ 146,195 Period-end loan balances: Loans evaluated on an individual basis $ 21,565 $ 1,713 $ 9,483 $ 5,360 $ 6,451 $ 1,884 $ 46,456 Loans evaluated on a collective basis 3,147,913 1,786,878 3,270,896 1,022,843 752,142 1,675,244 11,655,916 Ending balance $ 3,169,478 $ 1,788,591 $ 3,280,379 $ 1,028,203 $ 758,593 $ 1,677,128 $ 11,702,372 (1) Includes commercial small business leases. (2) Period-end loan balance excludes reverse mortgages at fair value of $3.0 million. (3) Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans. (4) Includes $23.5 million initial provision for credit losses on non-PCD loans. The following tables show nonaccrual and past due loans presented at amortized cost at the date indicated: September 30, 2023 (Dollars in thousands) 30–89 Days Greater Total Past Accruing Nonaccrual Loans With No Allowance Nonaccrual Total Commercial and industrial (1) $ 10,183 $ 1,119 $ 11,302 $ 3,212,140 $ 21,138 $ 5,157 $ 3,249,737 Owner-occupied commercial 1,669 — 1,669 1,907,355 14,085 1,062 1,924,171 Commercial mortgages 16,691 — 16,691 3,622,326 6,706 — 3,645,723 Construction 8,285 2,016 10,301 1,028,439 726 4,102 1,043,568 Residential (2) 6,764 — 6,764 846,045 2,531 — 855,340 Consumer (3) 15,580 11,222 26,802 1,928,327 1,953 — 1,957,082 Total $ 59,172 $ 14,357 $ 73,529 $ 12,544,632 $ 47,139 $ 10,321 $ 12,675,621 % of Total Loans 0.47 % 0.11 % 0.58 % 98.97 % 0.37 % 0.08 % 100 % (1) Includes commercial small business leases. (2) Residential accruing current balances excludes reverse mortgages at fair value of $2.8 million. (3) Includes $16.1 million of delinquent, but still accruing, U.S. government-guaranteed student loans that carry little risk of credit loss. December 31, 2022 (Dollars in thousands) 30–89 Days Greater Total Past Accruing Nonaccrual Loans (1) Total Commercial and industrial (2) $ 10,767 $ 311 $ 11,078 $ 3,116,478 $ 6,770 $ 3,134,326 Owner-occupied commercial 3,500 474 3,974 1,805,222 386 1,809,582 Commercial mortgages 2,137 237 2,374 3,343,551 5,159 3,351,084 Construction — — — 1,038,906 5,143 1,044,049 Residential (3) 2,563 — 2,563 753,703 3,199 759,465 Consumer (4) 12,263 15,513 27,776 1,781,009 2,145 1,810,930 Total (4) $ 31,230 $ 16,535 $ 47,765 $ 11,838,869 $ 22,802 $ 11,909,436 % of Total Loans 0.26 % 0.14 % 0.40 % 99.41 % 0.19 % 100 % (1) There were no nonaccrual loans with an allowance as of December 31, 2022. (2) Includes commercial small business leases. (3) Residential accruing current balances excludes reverse mortgages, at fair value of $2.4 million. (4) Includes $21.1 million of delinquent, but still accruing, U.S. government-guaranteed student loans that carry little risk of credit loss. The following table presents the amortized cost basis of nonaccruing collateral-dependent loans by class at September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 (Dollars in thousands) Property Equipment and other Property Equipment and other Commercial and industrial (1) $ 21,650 $ 4,645 $ 3,848 $ 2,922 Owner-occupied commercial 15,147 — 386 — Commercial mortgages 6,706 — 5,159 — Construction 4,828 — 5,143 — Residential (2) 2,531 — 3,199 — Consumer (3) 1,953 — 2,145 — Total $ 52,815 $ 4,645 $ 19,880 $ 2,922 (1) Includes commercial small business leases. (2) Excludes reverse mortgages at fair value. (3) Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans. As of September 30, 2023, there were 33 residential loans and 14 commercial loans in the process of foreclosure. The total outstanding balance on these loans was $3.8 million and $3.6 million, respectively. As of December 31, 2022, there were 45 residential loans and 8 commercial loans in the process of foreclosure. The total outstanding balance on these loans was $6.7 million and $1.6 million, respectively. Loan workout and other real estate owned (OREO) (recoveries) expenses were $(0.3) million and less than $0.1 million during the three and nine months ended September 30, 2023, respectively, and $0.3 million and $0.5 million during three and nine months ended September 30, 2022, respectively. Loan workout and OREO expenses are included in Loan workout and other credit costs on the unaudited Consolidated Statements of Income. Credit Quality Indicators Below is a description of each of the risk ratings for all commercial loans: • Pass . These borrowers currently show no indication of deterioration or potential problems and their loans are considered fully collectible. • Special Mention. These borrowers have potential weaknesses that deserve management’s close attention. Borrowers in this category may be experiencing adverse operating trends, for example, declining revenues or margins, high leverage, tight liquidity, or increasing inventory without increasing sales. These adverse trends can have a potential negative effect on the borrower’s repayment capacity. These assets are not adversely classified and do not expose the Bank to significant risk that would warrant a more severe rating. Borrowers in this category may also be experiencing significant management problems, pending litigation, or other structural credit weaknesses. • Substandard or Lower . These borrowers have well-defined weaknesses that require extensive oversight by management. Borrowers in this category may exhibit one or more of the following: inadequate debt service coverage, unprofitable operations, insufficient liquidity, high leverage, and weak or inadequate capitalization. Relationships in this category are not adequately protected by the sound financial worth and paying capacity of the obligor or the collateral pledged on the loan, if any. A distinct possibility exists that the Bank will sustain some loss if the deficiencies are not corrected. In addition, some borrowers in this category could have the added characteristic that the possibility of loss is extremely high. Current circumstances in the credit relationship make collection or liquidation in full highly questionable. Such impending events include: perfecting liens on additional collateral, obtaining collateral valuations, an acquisition or liquidation preceding, proposed merger, or refinancing plan. Residential and Consumer Loans The residential and consumer loan portfolios are monitored on an ongoing basis using delinquency information and loan type as credit quality indicators. These credit quality indicators are assessed in the aggregate in these relatively homogeneous portfolios. Loans that are greater than 90 days past due are generally considered nonperforming and placed on nonaccrual status. The following tables provide an analysis of loans by portfolio segment based on the credit quality indicators used to determine the allowance for credit losses as of September 30, 2023. Term Loans Amortized Cost Basis by Origination Year (1) 2023 2022 2021 2020 2019 Prior Revolving loans amortized cost basis Revolving loans converted to term Total (Dollars in thousands) Commercial and industrial (2) : Risk Rating Pass $ 830,232 $ 854,412 $ 321,269 $ 264,724 $ 119,282 $ 396,845 $ 8,710 $ 243,969 $ 3,039,443 Special mention 14,913 24,194 2,917 350 798 7 — 861 44,040 Substandard or Lower 53,341 34,854 5,908 11,086 24,982 19,568 — 16,515 166,254 $ 898,486 $ 913,460 $ 330,094 $ 276,160 $ 145,062 $ 416,420 $ 8,710 $ 261,345 $ 3,249,737 Current-period gross writeoffs $ 399 $ 5,410 $ 8,437 $ 1,398 $ 6,435 $ 8,417 $ — $ — $ 30,496 Owner-occupied commercial: Risk Rating Pass $ 289,740 $ 269,796 $ 268,593 $ 213,060 $ 206,999 $ 361,669 $ — $ 171,762 $ 1,781,619 Special mention 2,907 2,182 6,638 1,122 9,621 5,601 — 1,615 29,686 Substandard or Lower 8,936 18,540 9,523 11,588 2,831 42,725 — 18,723 112,866 $ 301,583 $ 290,518 $ 284,754 $ 225,770 $ 219,451 $ 409,995 $ — $ 192,100 $ 1,924,171 Current-period gross writeoffs $ — $ — $ — $ — $ 184 $ — $ — $ — $ 184 Commercial mortgages: Risk Rating Pass $ 682,033 $ 478,103 $ 521,669 $ 475,369 $ 494,904 $ 625,112 $ — $ 263,124 $ 3,540,314 Special mention 9,599 — 69 4,802 24,401 19,797 — 294 58,962 Substandard or Lower 9,913 2,584 1,343 11,041 1,249 4,846 — 15,471 46,447 $ 701,545 $ 480,687 $ 523,081 $ 491,212 $ 520,554 $ 649,755 $ — $ 278,889 $ 3,645,723 Current-period gross writeoffs $ — $ 83 $ — $ 217 $ — $ — $ — $ — $ 300 Construction: Risk Rating Pass $ 361,914 $ 387,776 $ 158,656 $ 20,879 $ 2,405 $ 9,241 $ — $ 41,362 $ 982,233 Special mention 14,239 14,338 10,691 — — — — — 39,268 Substandard or Lower 8,285 — 4,102 8,954 161 — — 565 22,067 $ 384,438 $ 402,114 $ 173,449 $ 29,833 $ 2,566 $ 9,241 $ — $ 41,927 $ 1,043,568 Current-period gross writeoffs $ — $ — $ — $ — $ — $ — $ — $ — $ — Residential (3) : Risk Rating Performing $ 152,336 $ 68,990 $ 104,664 $ 57,762 $ 34,205 $ 431,381 $ — $ — $ 849,338 Nonperforming — 170 589 489 1,259 3,495 — — 6,002 $ 152,336 $ 69,160 $ 105,253 $ 58,251 $ 35,464 $ 434,876 $ — $ — $ 855,340 Current-period gross writeoffs $ 33 $ — $ — $ — $ — $ — $ — $ — $ 33 Consumer (4) : Risk Rating Performing $ 251,967 $ 598,183 $ 164,642 $ 107,950 $ 47,046 $ 256,796 $ 523,391 $ 5,188 $ 1,955,163 Nonperforming — — — 199 41 — 1,367 312 1,919 $ 251,967 $ 598,183 $ 164,642 $ 108,149 $ 47,087 $ 256,796 $ 524,758 $ 5,500 $ 1,957,082 Current-period gross writeoffs $ 787 $ 10,716 $ 3,174 $ 235 $ 142 $ 320 $ — $ — $ 15,374 (1) Origination date represents the most recent underwriting of the loan which includes new relationships, renewals and extensions. (2) Includes commercial small business leases. (3) Excludes reverse mortgages at fair value. (4) Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans. The following tables provide an analysis of loans by portfolio segment based on the credit quality indicators used to determine the allowance for credit losses, as of December 31, 2022. Term Loans Amortized Cost Basis by Origination Year 2022 2021 2020 2019 2018 Prior Revolving loans amortized cost basis Revolving loans converted to term Total (Dollars in thousands) Commercial and industrial (1) : Risk Rating Pass $ 1,123,803 $ 501,761 $ 387,225 $ 211,310 $ 153,713 $ 276,588 $ 8,099 $ 250,486 $ 2,912,985 Special mention 28,672 27,689 7,585 9,451 347 1,010 — 2,596 77,350 Substandard or Lower 32,362 16,162 6,943 37,534 37,133 6,768 — 7,089 143,991 $ 1,184,837 $ 545,612 $ 401,753 $ 258,295 $ 191,193 $ 284,366 $ 8,099 $ 260,171 $ 3,134,326 Owner-occupied commercial: Risk Rating Pass $ 280,898 $ 325,388 $ 258,177 $ 226,717 $ 106,390 $ 363,420 $ — $ 132,942 $ 1,693,932 Special mention 17,376 — — — — 2,166 — 3,351 22,893 Substandard or Lower 2,981 1,500 23,284 4,401 11,864 35,311 — 13,416 92,757 $ 301,255 $ 326,888 $ 281,461 $ 231,118 $ 118,254 $ 400,897 $ — $ 149,709 $ 1,809,582 Commercial mortgages: Risk Rating Pass $ 516,783 $ 600,226 $ 526,312 $ 549,788 $ 276,414 $ 594,024 $ — $ 210,550 $ 3,274,097 Special mention 1,450 75 3,848 6,121 9,596 32,014 — — 53,104 Substandard or Lower 1,861 1,210 12,552 2,909 3,573 1,209 — 569 23,883 $ 520,094 $ 601,511 $ 542,712 $ 558,818 $ 289,583 $ 627,247 $ — $ 211,119 $ 3,351,084 Construction: Risk Rating Pass $ 448,581 $ 299,619 $ 115,667 $ 9,319 $ 26,553 $ 7,539 $ — $ 122,116 $ 1,029,394 Special mention — — — — — — — 581 581 Substandard or Lower — 4,200 8,930 183 — — — 761 14,074 $ 448,581 $ 303,819 $ 124,597 $ 9,502 $ 26,553 $ 7,539 $ — $ 123,458 $ 1,044,049 Residential (2) : Risk Rating Performing $ 64,500 $ 110,508 $ 60,625 $ 36,118 $ 45,859 $ 434,175 $ — $ — $ 751,785 Nonperforming — 729 502 999 1,218 4,232 — — 7,680 $ 64,500 $ 111,237 $ 61,127 $ 37,117 $ 47,077 $ 438,407 $ — $ — $ 759,465 Consumer (3) : Risk Rating Performing $ 595,158 $ 195,397 $ 126,456 $ 54,449 $ 220,039 $ 71,478 $ 540,308 $ 5,232 $ 1,808,517 Nonperforming — — 350 — 479 — 1,255 329 2,413 $ 595,158 $ 195,397 $ 126,806 $ 54,449 $ 220,518 $ 71,478 $ 541,563 $ 5,561 $ 1,810,930 (1) Includes commercial small business leases. (2) Excludes reverse mortgages at fair value. (3) Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans. Troubled Loans The Company offers loan modifications to commercial and consumer borrowers that may result in a payment delay, interest rate reduction, term extension, principal forgiveness, or combination thereof. Loan modifications are offered on a case-by-case basis and are generally term extension, payment delay, and interest rate reduction modification types. Forbearance (due to hardship) programs result in modification types including payment delay and/or term extension. In addition, certain reorganization bankruptcy judgments may result in interest rate reduction, term extension, or principal forgiveness modification types. The following table shows the amortized cost basis at the end of the reporting period of troubled loans, disaggregated by portfolio segment and type of modification granted. September 30, 2023 (Dollars in thousands) Term Extension More-Than-Insignificant Payment Delay Combination- Term Extension and Payment Delay Combination- Term Extension and Interest Rate Reduction Combination - Payment Delay and Interest Rate Reduction Total % of Total Loan Category Commercial and industrial (1) $ 36,683 $ 1,193 $ 10,163 $ 31 $ — $ 48,070 1.48 % Owner-occupied commercial — — 1,062 209 — 1,271 0.07 % Commercial mortgages 9,427 — — — — 9,427 0.26 % Construction 9,194 — — — — 9,194 0.88 % Residential 563 50 — — — 613 0.07 % Consumer (2) 1,102 2,704 5,154 157 494 9,611 0.49 % Total $ 56,969 $ 3,947 $ 16,379 $ 397 $ 494 $ 78,186 0.62 % (1) Includes commercial small business leases. (2) Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans. The following table describes the financial effect of the modifications made to troubled loans as of September 30, 2023: Term Extension ( 1) Interest Rate Reduction (2) More-Than-Insignificant Payment Delay (3) Commercial and industrial 1.55 4.00% 0.09% Owner-occupied commercial 1.27 2.58 0.01 Commercial mortgages 1.33 — — Construction 0.27 — — Residential 20.18 — — Consumer 3.07 3.27 0.07 (1) Represents the weighted-average increase in the life of modified loans measured in years, which reduces monthly payment amounts for borrowers. (2) Represents the weighted-average decrease in the contractual interest rate on the modified loans. (3) Represents the percentage of loans deferred over the total loan portfolio excluding reverse mortgages at fair value. As of September 30, 2023, the Company had commitments to extend credit of $4.8 million to borrowers experiencing financial difficulty whose terms had been modified. Upon the Company’s determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount. The following table shows the amortized cost of loans that received a term extension modification that had a payment default during the period and were modified in the 12 months before default to borrowers experiencing financial difficulty as of September 30, 2023. Term Extension More-Than-Insignificant Payment Delay Combination Term Extension & Payment Delay Total Commercial and industrial $ 707 $ — $ 10,163 $ 10,870 Owner-occupied commercial — — 1,062 1,062 Consumer — 101 — 101 Total $ 707 $ 101 $ 11,225 $ 12,033 The Company closely monitors the performance of troubled loans to understand the effectiveness of its modification efforts. The following table shows the performance of loans that have been modified in the last 12 months: September 30, 2023 (Dollars in thousands) 30-89 Days Past Due and Still Accruing 90+ Days Past Due and Still Accruing Accruing Current Balances Nonaccrual Loans Total Commercial and industrial (1) $ 428 $ — $ 36,299 $ 11,343 $ 48,070 Owner-occupied commercial — — — 1,271 1,271 Commercial mortgages — — 9,427 — 9,427 Construction 8,285 — 909 — 9,194 Residential (2) — — 613 — 613 Consumer (2) 727 207 8,277 400 9,611 Total $ 9,440 $ 207 $ 55,525 $ 13,014 $ 78,186 (1) Includes commercial small business leases. (2) Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans. Troubled Debt Restructurings (TDRs) under ASC 326 for periods prior to adoption of ASU 2022-02 The following table presents the balance of TDRs as of the indicated date: (Dollars in thousands) December 31, 2022 Performing TDRs $ 19,737 Nonperforming TDRs 2,006 Total TDRs $ 21,743 Approximately $0.6 million in related reserves have been established for these loans at December 31, 2022. The following table presents information regarding the types of loan modifications made for the three and nine months ended September 30, 2022: Three months ended September 30, 2022 Nine months ended September 30, 2022 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 — — — 2 2 1 — — 2 3 Commercial mortgages — — — — — — 1 — — 1 Construction — — — — — — 1 — — 1 Residential — — — — — 1 — 1 — 2 Consumer 50 8 4 2 64 51 32 7 3 93 Total 50 8 4 4 66 53 34 8 5 100 (1) Other includes interest rate reduction, forbearance, and interest only payments. Principal balances are generally not forgiven when a loan is modified as a TDR. Nonaccruing restructured loans remain in nonaccrual status until there has been a period of sustained repayment performance, which is typically six months, and repayment is reasonably assured. The following table presents loans modified as TDRs during the three and nine months ended September 30, 2022. Three months ended September 30, 2022 Nine Months Ended September 30, 2022 (Dollars in thousands) Pre Modification Post Modification Pre Modification Post Modification Commercial $ 157 $ 157 $ 185 $ 185 Commercial mortgages 2,390 2,390 2,390 2,390 Construction 2,000 2,000 2,000 2,000 Residential — — 138 138 Consumer 948 948 1,409 1,409 Total (1)(2) $ 5,495 $ 5,495 $ 6,122 $ 6,122 (1) During the three and nine months ended September 30, 2022 the TDRs set forth in the table above resulted in a less than $0.1 million increase and a $0.3 million increase in the allowance for credit losses, respectively, and no additional charge-offs in either period. During the three and nine months ended September 30, 2022, no TDRs defaulted that had received troubled debt modification during the past twelve months. (2) The TDRs set forth in the table above did not occur as a result of the loan forbearance program under the CARES Act. |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
LEASES | 8. LEASES As a lessee, the Company enters into leases for its bank branches, corporate offices, and certain equipment. As a lessor, the Company primarily provides financing through its equipment leasing business. Lessee The Company's ongoing leases have remaining lease terms of less than one year to 22 years, which includes renewal options that are exercised at its discretion. The Company's lease terms to calculate the lease liability and right-of-use asset include options to extend the lease when it is reasonably certain that the Company will exercise the option. The lease liability and right-of-use asset is included in Other liabilities and Other assets , respectively, in the unaudited Consolidated Statements of Financial Condition. Leases with an initial term of 12 months or less are not recorded on the unaudited Consolidated Statements of Financial Condition. Lease expense is recognized on a straight-line basis over the lease term. Operating lease expense is included in Occupancy expense in the unaudited Consolidated Statements of Income. The Company accounts for lease components separately from nonlease components. The Company subleases certain real estate to third parties. The components of operating lease cost were as follows: Three months ended Nine months ended (Dollars in thousands) September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Operating lease cost (1) $ 3,077 $ 4,900 $ 12,593 $ 15,289 Sublease income (37) (51) (118) (222) Net lease cost $ 3,040 $ 4,849 $ 12,475 $ 15,067 (1) Includes variable lease cost and short-term lease cost. Supplemental information related to operating leases was as follows: (Dollars in thousands) September 30, 2023 December 31, 2022 Right-of-use assets $ 127,020 $ 138,182 Lease liabilities $ 147,102 $ 158,269 Lease term and discount rate Weighted average remaining lease term (in years) 12.82 17.91 Weighted average discount rate 5.18 % 4.25 % Maturities of operating lease liabilities were as follows: (Dollars in thousands) September 30, 2023 Remaining in 2023 $ 4,652 2024 17,259 2025 17,014 2026 16,176 2027 14,865 After 2027 135,220 Total lease payments 205,186 Less: Interest (58,084) Present value of lease liabilities $ 147,102 Supplemental cash flow information related to operating leases was as follows: Three months ended Nine months ended (Dollars in thousands) September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,041 $ 5,196 $ 14,235 $ 15,911 Right of use assets obtained in exchange for new operating lease liabilities (non-cash) — — — 13,707 As of September 30, 2023, the Corporation had not entered into any material leases that have not yet commenced. Lessor Equipment Leasing The Company provides equipment and small business lease financing through its leasing subsidiary, NewLane Finance ® . Interest income from direct financing leases where the Company is a lessor is recognized in Interest and fees on loans and leases on the unaudited Consolidated Statements of Income. The allowance for credit losses on finance leases is included in Provision for credit losses on the unaudited Consolidated Statements of Income. The components of direct finance lease income are summarized in the table below: Three months ended Nine months ended (Dollars in thousands) September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Direct financing leases: Interest income on lease receivable $ 13,682 $ 10,822 $ 39,200 $ 30,885 Interest income on deferred fees and costs, net (1,643) (925) (4,479) (2,422) Total direct financing lease net interest income $ 12,039 $ 9,897 $ 34,721 $ 28,463 Equipment leasing receivables relate to direct financing leases. The composition of the net investment in direct financing leases was as follows: (Dollars in thousands) September 30, 2023 December 31, 2022 Lease receivables $ 698,729 $ 642,369 Unearned income (108,629) (95,683) Deferred fees and costs 15,598 12,295 Net investment in direct financing leases $ 605,698 $ 558,981 |
LEASES | 8. LEASES As a lessee, the Company enters into leases for its bank branches, corporate offices, and certain equipment. As a lessor, the Company primarily provides financing through its equipment leasing business. Lessee The Company's ongoing leases have remaining lease terms of less than one year to 22 years, which includes renewal options that are exercised at its discretion. The Company's lease terms to calculate the lease liability and right-of-use asset include options to extend the lease when it is reasonably certain that the Company will exercise the option. The lease liability and right-of-use asset is included in Other liabilities and Other assets , respectively, in the unaudited Consolidated Statements of Financial Condition. Leases with an initial term of 12 months or less are not recorded on the unaudited Consolidated Statements of Financial Condition. Lease expense is recognized on a straight-line basis over the lease term. Operating lease expense is included in Occupancy expense in the unaudited Consolidated Statements of Income. The Company accounts for lease components separately from nonlease components. The Company subleases certain real estate to third parties. The components of operating lease cost were as follows: Three months ended Nine months ended (Dollars in thousands) September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Operating lease cost (1) $ 3,077 $ 4,900 $ 12,593 $ 15,289 Sublease income (37) (51) (118) (222) Net lease cost $ 3,040 $ 4,849 $ 12,475 $ 15,067 (1) Includes variable lease cost and short-term lease cost. Supplemental information related to operating leases was as follows: (Dollars in thousands) September 30, 2023 December 31, 2022 Right-of-use assets $ 127,020 $ 138,182 Lease liabilities $ 147,102 $ 158,269 Lease term and discount rate Weighted average remaining lease term (in years) 12.82 17.91 Weighted average discount rate 5.18 % 4.25 % Maturities of operating lease liabilities were as follows: (Dollars in thousands) September 30, 2023 Remaining in 2023 $ 4,652 2024 17,259 2025 17,014 2026 16,176 2027 14,865 After 2027 135,220 Total lease payments 205,186 Less: Interest (58,084) Present value of lease liabilities $ 147,102 Supplemental cash flow information related to operating leases was as follows: Three months ended Nine months ended (Dollars in thousands) September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,041 $ 5,196 $ 14,235 $ 15,911 Right of use assets obtained in exchange for new operating lease liabilities (non-cash) — — — 13,707 As of September 30, 2023, the Corporation had not entered into any material leases that have not yet commenced. Lessor Equipment Leasing The Company provides equipment and small business lease financing through its leasing subsidiary, NewLane Finance ® . Interest income from direct financing leases where the Company is a lessor is recognized in Interest and fees on loans and leases on the unaudited Consolidated Statements of Income. The allowance for credit losses on finance leases is included in Provision for credit losses on the unaudited Consolidated Statements of Income. The components of direct finance lease income are summarized in the table below: Three months ended Nine months ended (Dollars in thousands) September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Direct financing leases: Interest income on lease receivable $ 13,682 $ 10,822 $ 39,200 $ 30,885 Interest income on deferred fees and costs, net (1,643) (925) (4,479) (2,422) Total direct financing lease net interest income $ 12,039 $ 9,897 $ 34,721 $ 28,463 Equipment leasing receivables relate to direct financing leases. The composition of the net investment in direct financing leases was as follows: (Dollars in thousands) September 30, 2023 December 31, 2022 Lease receivables $ 698,729 $ 642,369 Unearned income (108,629) (95,683) Deferred fees and costs 15,598 12,295 Net investment in direct financing leases $ 605,698 $ 558,981 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | 9. GOODWILL AND INTANGIBLE ASSETS In accordance with ASC 805, Business Combinations (ASC 805) and ASC 350, Intangibles - Goodwill and Other (ASC 350), all assets acquired and liabilities assumed in purchase acquisitions, including goodwill, indefinite-lived intangibles and other intangibles are recorded at fair value as of acquisition date. WSFS performs its annual goodwill impairment test on October 1 or more frequently if events and circumstances indicate that the fair value of a reporting unit is less than its carrying value. In between annual tests, management performs a qualitative review of goodwill quarterly as part of the Company's review of the overall business to ensure no events or circumstances have occurred that would impact its goodwill evaluation. During the nine months ended September 30, 2023, management determined based on its qualitative assessment that the fair values of our reporting units exceeded their carrying values, and no goodwill impairment existed during the nine months ended September 30, 2023. The following table shows the allocation of goodwill to the reportable operating segments for purposes of goodwill impairment testing: (Dollars in thousands) WSFS Cash Connect ® Wealth Consolidated December 31, 2022 $ 753,586 $ — $ 130,051 $ 883,637 Goodwill from business combinations (1) — — 2,261 2,261 September 30, 2023 $ 753,586 $ — $ 132,312 $ 885,898 (1) During the third quarter of 2023, BMCM acquired the business of a registered investment advisory firm. ASC 350 requires that an acquired intangible asset be separately recognized if the benefit of the intangible asset is obtained through contractual or other legal rights, or if the asset can be sold, transferred, licensed, rented or exchanged, regardless of the acquirer’s intent to do so. The following table summarizes the Company's intangible assets: (Dollars in thousands) Gross Accumulated Net Amortization Period September 30, 2023 Core deposits $ 104,751 $ (48,180) $ 56,571 10 years Customer relationships 73,880 (16,795) 57,085 7-15 years Loan servicing rights (1) 12,201 (6,183) 6,018 10-25 years Tradename 2,900 — 2,900 indefinite Total intangible assets $ 193,732 $ (71,158) $ 122,574 December 31, 2022 Core deposits $ 104,751 $ (40,443) $ 64,308 10 years Customer relationships 68,281 (12,937) 55,344 7-15 years Loan servicing rights (2) 11,118 (5,075) 6,043 10-25 years Tradename 2,900 — 2,900 indefinite Non-compete agreements 200 (200) — 1 year Total intangible assets $ 187,250 $ (58,655) $ 128,595 (1) Includes a reversal of impairment losses of $0.2 million and less than $0.1 million for the three and nine months ended September 30, 2023, respectively. (2) Includes impairment losses of $0.3 million for the year ended December 31, 2022. The Company recognized amortization expense on intangible assets of $3.9 million and $11.6 million for the three and nine months ended September 30, 2023, respectively, compared to $3.9 million and $11.8 million for the three and nine months ended September 30, 2022, respectively. The following table presents the estimated future amortization expense on definite life intangible assets: (Dollars in thousands) September 30, 2023 Remaining in 2023 $ 4,239 2024 16,793 2025 16,451 2026 15,775 2027 15,337 Thereafter 51,079 Total $ 119,674 Servicing Assets The Company records mortgage servicing rights on its mortgage loan servicing portfolio, which includes mortgages that it acquires or originates as well as mortgages that it services for others, and servicing rights on Small Business Administration (SBA) loans. Mortgage servicing rights and SBA loan servicing rights are included in Intangible assets in the accompanying unaudited Consolidated Statements of Financial Condition. Mortgage loans which the Company services for others are not included in Loans and leases, net of allowance in the accompanying unaudited Consolidated Statements of Financial Condition. Servicing rights represent the present value of the future net servicing fees from servicing mortgage loans the Company acquires or originates, or that it services for others. The value of the Company's mortgage servicing rights was $1.8 million and $2.1 million at September 30, 2023 and December 31, 2022, respectively, and the value of its SBA loan servicing rights was $4.2 million and $4.0 million at September 30, 2023 and December 31, 2022, respectively. Changes in the value of the Company's servicing rights resulted in a reversal of impairment losses of $0.2 million and less than $0.1 million for the three and nine months ended September 30, 2023, respectively, and impairment losses of $0.1 million and $0.2 million for the three and nine months ended September 30, 2022, respectively. Revenues from originating, marketing and servicing mortgage loans as well as valuation adjustments related to capitalized mortgage servicing rights are included in Mortgage banking activities, net in the unaudited Consolidated Statements of Income and revenues from the Company's SBA loan servicing rights are included in Loan and lease fee income in the unaudited Consolidated Statements of Income. Besides the impairment on loan servicing rights noted above, there was no impairment of other intangible assets as of September 30, 2023 or December 31, 2022. Changing economic conditions that may adversely affect the Company's performance and could result in impairment, which could adversely affect earnings in the future. |
DEPOSITS
DEPOSITS | 9 Months Ended |
Sep. 30, 2023 | |
Deposits Liabilities, Balance Sheet, Reported Amounts [Abstract] | |
DEPOSITS | 10. DEPOSITS The following table shows deposits by category: (Dollars in thousands) September 30, 2023 December 31, 2022 Noninterest-bearing: Noninterest demand $ 4,913,517 $ 5,739,647 Total noninterest-bearing $ 4,913,517 $ 5,739,647 Interest-bearing: Interest-bearing demand $ 3,027,780 $ 3,346,682 Savings 1,680,864 2,161,858 Money market 4,559,643 3,730,778 Customer time deposits 1,715,460 1,102,013 Brokered deposits 89,105 122,591 Total interest-bearing 11,072,852 10,463,922 Total deposits $ 15,986,369 $ 16,203,569 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 11. INCOME TAXES There were no unrecognized tax benefits as of September 30, 2023. The Company records interest and penalties on potential income tax deficiencies as income tax expense. The Company's federal and state tax returns for the 2019 through 2022 tax years are subject to examination as of September 30, 2023. The Company does not expect to record or realize any material unrecognized tax benefits during 2023. The amortization of the low-income housing credit investments has been reflected as income tax expense of $1.4 million and $1.2 million for the three months ended September 30, 2023 and 2022, respectively, and $4.1 million and $3.6 million of such amortization has been reflected as income tax expense for the nine months ended September 30, 2023 and 2022, respectively. The amount of affordable housing tax credits, amortization, and tax benefits recorded as income tax expense for the nine months ended September 30, 2023 were $3.5 million, $4.1 million and $1.4 million, respectively. The carrying value of the investment in affordable housing credits is $64.9 million at September 30, 2023, compared to $69.0 million at December 31, 2022. |
FAIR VALUE DISCLOSURES OF FINAN
FAIR VALUE DISCLOSURES OF FINANCIAL ASSETS AND LIABILITIES | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE DISCLOSURES OF FINANCIAL ASSETS AND LIABILITIES | 12. FAIR VALUE DISCLOSURES OF FINANCIAL ASSETS AND LIABILITIES FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES ASC 820-10, Fair Value Measurement (ASC 820-10) defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820-10 establishes a fair value hierarchy that prioritizes the use of inputs used in valuation methodologies into the following three levels: • Level 1: Inputs to the valuation methodology are quoted prices, unadjusted, for identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available. • Level 2: Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets; inputs to the valuation methodology include quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs to the valuation methodology that are derived principally from or can be corroborated by observable market data by correlation or other means. • Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Level 3 assets and liabilities include financial instruments whose value is determined using discounted cash flow methodologies, as well as instruments for which the determination of fair value requires significant management judgment or estimation. The following tables present financial instruments carried at fair value as of September 30, 2023 and December 31, 2022 by level in the valuation hierarchy (as described above): September 30, 2023 (Dollars in thousands) Quoted Significant Significant Total Fair Assets measured at fair value on a recurring basis: Available-for-sale securities: CMO $ — $ 454,664 $ — $ 454,664 FNMA MBS — 2,913,412 — 2,913,412 FHLMC MBS — 110,719 — 110,719 GNMA MBS — 42,751 — 42,751 GSE agency notes — 169,995 — 169,995 Other assets — 203,083 23 203,106 Total assets measured at fair value on a recurring basis $ — $ 3,894,624 $ 23 $ 3,894,647 Liabilities measured at fair value on a recurring basis: Other liabilities $ — $ 196,821 $ 14,482 $ 211,303 Assets measured at fair value on a nonrecurring basis: Other investments $ — $ — $ 21,741 $ 21,741 Other real estate owned — — 298 298 Loans held for sale — 36,658 — 36,658 Total assets measured at fair value on a nonrecurring basis $ — $ 36,658 $ 22,039 $ 58,697 December 31, 2022 (Dollars in thousands) Quoted Significant Significant Total Fair Assets measured at fair value on a recurring basis: Available-for-sale securities: CMO $ — $ 506,380 $ — $ 506,380 FNMA MBS — 3,250,258 — 3,250,258 FHLMC MBS — 121,999 — 121,999 GNMA MBS — 36,138 — 36,138 GSE agency notes — 178,285 — 178,285 Other assets — 156,912 81 156,993 Total assets measured at fair value on a recurring basis $ — $ 4,249,972 $ 81 $ 4,250,053 Liabilities measured at fair value on a recurring basis: Other liabilities $ — $ 156,520 $ 17,102 $ 173,622 Assets measured at fair value on a nonrecurring basis Other investments $ — $ — $ 26,120 $ 26,120 Other real estate owned — — 833 833 Loans held for sale — 42,985 — 42,985 Total assets measured at fair value on a nonrecurring basis $ — $ 42,985 $ 26,953 $ 69,938 Fair value is based on quoted market prices, where available. If such quoted market prices are not available, fair value is based on internally developed models or obtained from third parties that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include unobservable parameters. The Company's valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While the Company believes its valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Available-for-sale securities Securities classified as available-for-sale are reported at fair value using Level 2 inputs. The Company believes that this Level 2 designation is appropriate under ASC 820-10, as these securities are GSEs and GNMA securities with almost all fixed income securities, none are exchange traded, and all are priced by correlation to observed market data. For these securities the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, U.S. government and agency yield curves, live trading levels, trade execution data, market consensus prepayment speeds, credit information, and the security’s terms and conditions, among other factors. Other investments Other investments includes equity investments without readily determinable fair values and equity method investments, which are categorized as Level 3. The Company’s equity investments without readily determinable fair values are held at cost, and are adjusted for any observable transactions during the reporting period and its equity method investments are initially recorded at cost based on the Company’s percentage ownership in the investee, and are adjusted to reflect the recognition of the Company’s proportionate share of income or loss of the investee based on the investee’s earnings. Other real estate owned Other real estate owned consists of loan collateral which has been repossessed through foreclosure or other measures. Initially, foreclosed assets are recorded at the fair value of the collateral less estimated selling costs. Subsequent to foreclosure, valuations are updated periodically and the assets may be marked down further, reflecting a new cost basis. The fair value of other real estate owned was estimated using Level 3 inputs based on appraisals obtained from third parties. Loans held for sale The fair value of loans held for sale is based on estimates using Level 2 inputs. These inputs are based on pricing information obtained from wholesale mortgage banks and brokers and applied to loans with similar interest rates and maturities. Other assets Other assets include the fair value of interest rate products, derivatives on the residential mortgage held for sale loan pipeline, and risk participation agreements. Valuation of interest rate products is obtained from an independent pricing service and also from the derivative counterparty. Valuation of the derivative related to the residential mortgage held for sale loan pipeline is based on valuation of the loans held for sale portfolio as described above in Loans held for sale . Valuation of risk participation agreements are obtained from an independent pricing service. Other liabilities Other liabilities include the fair value of interest rate products, derivatives on the residential mortgage held for sale loan pipeline, foreign exchange forward contracts, risk participation agreements, and derivative related to the sale of certain Visa Class B common shares. Valuation of interest rate products is obtained from an independent pricing service and also from the derivative counterparty. Valuation of the derivative related to the residential mortgage held for sale loan pipeline is based on valuation of the loans held for sale portfolio as described above in Loans held for sale. Valuation of foreign exchange forward contracts and risk participation agreements are obtained from an independent pricing service. Valuation of the derivative related to the sale of certain Visa Class B common shares is based on: (i) the agreed upon graduated fee structure; (ii) the length of time until the resolution of the Visa covered litigation; and (iii) the estimated impact of dilution in the conversion ratio of Class B shares resulting from changes in the Visa covered litigation. FAIR VALUE OF FINANCIAL INSTRUMENTS The reported fair values of financial instruments are based on a variety of factors. In certain cases, fair values represent quoted market prices for identical or comparable instruments. In other cases, fair values have been estimated based on assumptions regarding the amount and timing of estimated future cash flows that are discounted to reflect current market rates and varying degrees of risk. Accordingly, the fair values may not represent actual values of the financial instruments that could have been realized as of period-end or that will be realized in the future. The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value: Cash, cash equivalents, and restricted cash For cash and short-term investment securities, including due from banks, federal funds sold or purchased under agreements to resell and interest-bearing deposits with other banks, the carrying amount is a reasonable estimate of fair value. Investment securities Investment securities include debt securities classified as held-to-maturity or available-for-sale. Fair value is estimated using quoted prices for similar securities, which the Company obtains from a third party vendor. The Company uses one of the largest providers of securities pricing to the industry and management periodically assesses the inputs used by this vendor to price the various types of securities owned by the Company to validate the vendor’s methodology as described above in available-for-sale securities. Other investments Other investments includes equity investments without readily determinable fair values (see discussion in “Fair Value of Financial Assets and Liabilities” section above). Loans held for sale Loans held for sale are carried at their fair value (see discussion in “Fair Value of Financial Assets and Liabilities” section above). Loans and leases Loans and leases are segregated by portfolio segments with similar financial characteristics. The fair values of loans and leases, with the exception of reverse mortgages, are estimated by discounting expected cash flows using the current rates at which similar loans would be made to borrowers with comparable credit ratings and for similar remaining maturities. The fair values of reverse mortgages are based on the net present value of the expected cash flows using a discount rate specific to the reverse mortgages portfolio. The fair value of nonperforming loans is based on recent external appraisals of the underlying collateral, if the loan is collateral dependent. Estimated cash flows, discounted using a rate commensurate with current rates and the risk associated with the estimated cash flows, are used if appraisals are not available. This technique does contemplate an exit price. Stock in the Federal Home Loan Bank (FHLB) of Pittsburgh The fair value of FHLB stock is assumed to be equal to its cost basis, since the stock is non-marketable but redeemable at its par value. Accrued interest receivable The carrying amounts of interest receivable approximate fair value. Other assets Other assets include the fair value of interest rate products, derivatives on the residential mortgage held for sale loan pipeline, and risk participation agreements (see discussion in “Fair Value of Financial Assets and Liabilities” section above). Deposits The fair value of deposits with no stated maturity, such as noninterest-bearing demand deposits, money market and interest-bearing demand deposits, is assumed to be equal to the amount payable on demand. The fair value of time deposits is based on the discounted value of contractual cash flows. The discount rate is estimated using rates currently offered for deposits with comparable remaining maturities. Borrowed funds Rates currently available to the Company for debt with similar terms and remaining maturities are used to estimate the fair value of existing debt. Off-balance sheet instruments The fair value of off-balance sheet instruments, including swap guarantees of $7.7 million at September 30, 2023 and $10.4 million at December 31, 2022, respectively, and standby letters of credit, approximates the recorded net deferred fee amounts. Because letters of credit are generally not assignable by either the Company or the borrower, they only have value to the Company and the borrower. In determining the fair value of the swap guarantees, the Company assesses the underlying credit risk exposure for each borrower in a paying position to the third-party financial institution. Accrued interest payable The carrying amounts of interest payable approximate fair value. Other liabilities Other liabilities include the fair value of interest rate products, derivatives on the residential mortgage held for sale loan pipeline, foreign exchange forward contracts, risk participation agreements, and derivative related to the sale of certain Visa Class B common shares (see discussion in “Fair Value of Financial Assets and Liabilities” section above). Financial instruments measured at fair value using significant unobservable inputs (Level 3) The following tables provide a description of the valuation techniques and significant unobservable inputs for the Company's financial instruments classified as Level 3 as of September 30, 2023 and December 31, 2022: (Dollars in thousands) September 30, 2023 Financial Instrument Fair Value Valuation Technique(s) Unobservable Input Range Other investments $ 21,741 Observed market comparable transactions Period of observed transactions May 2022 Other real estate owned 298 Fair market value of collateral Costs to sell 10.0% Other assets (Risk participation agreements purchased) 23 Credit Value Adjustment CDS Spread and Loss Given Default (LGD) CDS spread: 110 - 360 bps (196 bps) LGD: –% - 30% (30%) Other liabilities (Risk participation agreements sold) 1 Credit Value Adjustment CDS Spread and Loss Given Default (LGD) CDS spread: 1 - 250 bps (78 bps) LGD: 30% Other liabilities (Financial derivative related to 14,481 Discounted cash flow Timing of Visa litigation resolution 1.00 - 5.00 years (3.20 years or 4Q 2025) (Dollars in thousands) December 31, 2022 Financial Instrument Fair Value Valuation Technique(s) Unobservable Input Range Other investments $ 26,120 Observed market comparable transactions Period of observed transactions May 2022 Other real estate owned 833 Fair market value of collateral Costs to sell 10.0% Other assets (Risk participation agreements purchased) 81 Credit Value Adjustment CDS Spread and Loss Given Default (LGD) CDS spread: 110 - 250 bps (205 bps) LGD: –% - 30% (30%) Other liabilities (Risk participation agreements sold) 2 Credit Value Adjustment CDS Spread and Loss Given Default (LGD) CDS spread: 1 - 250 bps (158 bps) LGD: 30% Other liabilities (Financial derivative related to 17,100 Discounted cash flow Timing of Visa litigation resolution 1.00 - 5.75 years (3.61 years or 4Q 2025) The book value and estimated fair value of the Company's financial instruments are as follows: September 30, 2023 December 31, 2022 (Dollars in thousands) Fair Value Book Value Fair Value Book Value Fair Value Financial assets: Cash, cash equivalents, and restricted cash Level 1 $ 611,480 $ 611,480 $ 837,258 $ 837,258 Investment securities available-for-sale Level 2 3,691,541 3,691,541 4,093,060 4,093,060 Investment securities held-to-maturity, net Level 2 1,068,871 927,680 1,111,619 1,040,104 Other investments Level 3 21,741 21,741 26,120 26,120 Loans, held for sale Level 2 36,658 36,658 42,985 42,985 Loans and leases, net (1) Level 3 12,502,404 12,454,772 11,759,992 11,567,888 Stock in FHLB of Pittsburgh Level 2 12,199 12,199 24,116 24,116 Accrued interest receivable Level 2 81,909 81,909 74,448 74,448 Other assets Levels 2, 3 203,106 203,106 156,993 156,993 Financial liabilities: Deposits Level 2 $ 15,986,369 $ 15,951,775 $ 16,203,569 $ 16,156,124 Borrowed funds Level 2 917,833 917,053 726,894 709,014 Standby letters of credit Level 3 663 663 739 739 Accrued interest payable Level 2 42,481 42,481 5,174 5,174 Other liabilities Levels 2, 3 211,303 211,303 173,622 173,622 (1) Includes reverse mortgage loans. At September 30, 2023 and December 31, 2022 the Company had no commitments to extend credit measured at fair value. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | 13. DERIVATIVE FINANCIAL INSTRUMENTS Risk Management Objective of Using Derivatives The Company is exposed to certain risks arising from both economic conditions and its business operations. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its assets and liabilities. The Company manages a matched book with respect to its derivative instruments in order to minimize its net risk exposure resulting from such transactions. The Company does not use derivative financial instruments for trading purposes. Fair Values of Derivative Instruments The table below presents the fair value of derivative financial instruments as well as their location on the unaudited Consolidated Statements of Financial Condition as of September 30, 2023. Fair Values of Derivative Instruments (Dollars in thousands) Count Notional Balance Sheet Location Derivatives Derivatives designated as hedging instruments: Interest rate products 6 $ 500,000 Other assets $ 5,508 Total $ 500,000 $ 5,508 Derivatives not designated as hedging instruments: Interest rate products $ 2,226,251 Other assets $ 196,508 Interest rate products 2,226,251 Other liabilities (196,508) Interest rate lock commitments with customers 32,747 Other assets 498 Interest rate lock commitments with customers 3,886 Other liabilities (20) Forward sale commitments 21,500 Other assets 203 Forward sale commitments 13,907 Other liabilities (32) FX forwards 16,687 Other assets 366 FX forwards 14,793 Other liabilities (261) Risk participation agreements sold 97,049 Other liabilities (1) Risk participation agreements purchased 115,520 Other assets 23 Financial derivatives related to 113,177 Other liabilities (14,481) Total derivatives $ 5,381,768 $ (8,197) The table below presents the fair value of derivative financial instruments as well as their location on the unaudited Consolidated Statements of Financial Condition as of December 31, 2022. Fair Values of Derivative Instruments (Dollars in thousands) Notional Balance Sheet Location Derivatives Derivatives not designated as hedging instruments: Interest rate products $ 1,794,678 Other assets $ 156,414 Interest rate products 1,794,678 Other liabilities (156,414) Interest rate lock commitments with customers 24,673 Other assets 385 Interest rate lock commitments with customers 1,179 Other liabilities (7) Forward sale commitments 9,072 Other assets 75 Forward sale commitments 20,719 Other liabilities (54) FX forwards 4,177 Other assets 38 FX forwards 3,052 Other liabilities (45) Risk participation agreements sold 68,459 Other liabilities (2) Risk participation agreements purchased 87,168 Other assets 81 Financial derivatives related to 113,177 Other liabilities (17,100) Total derivatives $ 3,921,032 $ (16,629) 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 nine months ended September 30, 2023 and September 30, 2022. Amount of (Loss) Gain Recognized in OCI on Derivative (Effective Portion) Amount of (Loss) Gain Recognized in OCI on Derivative (Effective Portion) Location of Gain Reclassified from Accumulated OCI into Income (Effective Portion) (Dollars in thousands) Three Months Ended September 30, Nine Months Ended September 30, Derivatives in Cash Flow Hedging Relationships 2023 2022 2023 2022 Interest rate products $ (1,608) $ — $ (2,752) $ — Interest income Total $ (1,608) $ — $ (2,752) $ — Amount of Gain (Loss) Recognized in Income Amount of Gain (Loss) Recognized in Income Location of Gain (Loss) Recognized in Income (Dollars in thousands) Three Months Ended September 30, Nine Months Ended September 30, Derivatives not designated as hedging instruments 2023 2022 2023 2022 Interest rate products $ 3,427 $ 674 $ 7,397 $ 5,599 Other income Interest rate lock commitments with customers (171) (1,032) 116 (1,856) Mortgage banking activities, net Forward sale commitments 595 1,097 660 $ 5,120 Mortgage banking activities, net FX forwards 97 54 126 95 Other income Risk participation agreements (317) (1) (330) (191) Other income Total $ 3,631 $ 792 $ 7,969 $ 8,767 Derivatives Designated as Hedging Instruments: Cash Flow Hedges of Interest Rate Risk The Company's objectives in using interest rate derivatives are to add stability to interest income and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate options, including floors, caps, collars, or swaps as part of its interest rate risk management strategy. Interest rate options designated as cash flow hedges involve the receipt of fixed amounts from a counterparty in exchange for the Company making variable-rate payments over the life of the agreements without exchange of the underlying notional amount. The Company has agreements with certain derivative counterparties that contain a provision under which, if it defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. The Company also has agreements with certain derivative counterparties that contain a provision where if it fails to maintain its status as a well-capitalized or adequately capitalized institution, then the counterparty could terminate the derivative positions and the Company would be required to settle its obligations under the agreements. During 2023, the Company purchased six interest rate floors at a premium of $9.7 million with an aggregate notional amount of $500.0 million to hedge variable cash flows associated with a variable rate loan pool through the third quarter of 2026. Changes to the fair value of derivatives designated and that qualify as cash flow hedges are recorded in accumulated other comprehensive income (loss) and is subsequently reclassified into earnings in the period that the hedged forecast transaction affects earnings. If the Company determines that a cash flow hedge is no longer highly effective, future changes in the fair value of the hedging instrument would be reported in earnings. As of September 30, 2023, the Company determined the cash flow hedges remain highly effective. During the three and nine months ended September 30, 2023, $0.4 million and $0.6 million, respectively, of amortization expense on the premium was reclassified into interest income. The Company does not expect any unrealized gains or losses related to cash flow hedges to be reclassified into earnings in the next twelve months. In 2020, the Company terminated its three interest rate swaps that were designated as cash flow hedges for a net gain of $1.3 million, recognized in accumulated other comprehensive income. The derivatives were used to hedge the variable cash flows associated with a variable rate loan pool. Hedge accounting was discontinued, and the net gain in accumulated comprehensive income is reclassified into earnings when the transaction affects earnings. As the underlying hedged transaction continued to be probable, the remaining net gain for the three and nine months ended September 30, 2023, of less than $0.1 million and $0.1 million was reclassified into interest income, respectively. As of September 30, 2023, this gain has been fully recognized and reclassified to interest income. Derivatives Not Designated as Hedging Instruments: Customer Derivatives – Interest Rate Swaps The Company enters into interest rate swaps with commercial loan customers wishing to manage interest rate risk. The Company then enters into corresponding swap agreements with swap dealer counterparties to economically hedge the exposure arising from these contracts. The interest rate swaps with both the customers and third parties are not designated as hedges under ASC 815, Derivatives and Hedging (ASC 815) and are marked to market through earnings. As the interest rate swaps are structured to offset each other, changes to the underlying benchmark interest rates considered in the valuation of these instruments do not result in an impact to earnings; however, there may be fair value adjustments related to credit quality variations between counterparties, which may impact earnings as required by ASC 820. As of September 30, 2023, there were no fair value adjustments related to credit quality. Derivative Financial Instruments from Mortgage Banking Activities Derivative financial instruments related to mortgage banking activities are recorded at fair value and are not designated as accounting hedges. This includes commitments to originate certain fixed-rate residential mortgage loans to customers, also referred to as interest rate lock commitments. The Company may also enter into forward sale commitments to sell loans to investors at a fixed price at a future date and trade asset-backed securities to mitigate interest rate risk. Foreign Exchange Forward Contracts The Company enters into foreign exchange forward contracts (FX forwards) with customers to exchange one currency for another on an agreed date in the future at an agreed exchange rate. The Corporation then enters into corresponding FX forwards with swap dealer counterparties to economically hedge its exposure on the exchange rate component of the customer agreements. The FX forwards with both the customers and third parties are not designated as hedges under ASC 815 and are marked to market through earnings. Exposure to gains and losses on these contracts increase or decrease over their respective lives as currency exchange and interest rates fluctuate. As the FX forwards are structured to offset each other, changes to the underlying term structure of currency exchange rates considered in the valuation of these instruments do not result in an impact to earnings; however, there may be fair value adjustments related to credit quality variations between counterparties, which may impact earnings as required by ASC 820. As of September 30, 2023, there were no fair value adjustments related to credit quality. Risk Participation Agreements The Company may enter into a risk participation agreement (RPA) with another institution as a means to assume a portion of the credit risk associated with a loan structure which includes a derivative instrument, in exchange for fee income commensurate with the risk assumed. This type of derivative is referred to as an “RPA sold.” In addition, in an effort to reduce the credit risk associated with an interest rate swap agreement with a borrower for whom the Corporation has provided a loan structured with a derivative, the Corporation may purchase an RPA from an institution participating in the facility in exchange for a fee commensurate with the risk shared. This type of derivative is referred to as an “RPA purchased.” Swap Guarantees The Company entered into agreements with one unrelated financial institution whereby that financial institution entered into interest rate derivative contracts (interest rate swap transactions) directly with customers referred to them by the Company. Under the terms of the agreements, the financial institution has recourse to us for any exposure created under each swap transaction, only in the event that the customer defaults on the swap agreement and the agreement is in a paying position to the third-party financial institution. This is a customary arrangement that allows us to provide access to interest rate swap transactions for our customers without creating the swap ourselves. These swap guarantees are accounted for as credit derivatives. At September 30, 2023 and December 31, 2022, there were 193 and 209 variable-rate to fixed-rate swap transactions between the third-party financial institutions and the Company's customers, respectively. The initial notional aggregate amount was approximately $0.8 billion at September 30, 2023 and December 31, 2022. At September 30, 2023, the swap transactions remaining maturities ranged from under 1 year to 12 years. At September 30, 2023, none of these customer swaps were in a paying position to third parties, with our swap guarantees having a fair value of $7.7 million. At December 31, 2022, none of these customer swaps were in a paying position to third parties, with the Company's swap guarantees having a fair value of $10.4 million. However, for both periods, none of the Company's customers were in default of the swap agreements. Credit-risk-related Contingent Features The Company has agreements with certain derivative counterparties that contain a provision under which, if it defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. The Company has minimum collateral posting thresholds with certain of its derivative counterparties, and has posted collateral of $5.0 million in cash against its obligations under these agreements which meets or exceeds the minimum collateral posting requirements. If the Company had breached any of these provisions at September 30, 2023, it could have been required to settle its obligations under the agreements at the termination value. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | 14. SEGMENT INFORMATION As defined in ASC 280, Segment Reporting (ASC 280), an operating segment is a component of an enterprise that engages in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the enterprise’s chief operating decision makers to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available. The Company evaluates performance based on pretax net income relative to resources used, and allocate resources based on these results. The accounting policies applicable to the Company's segments are those that apply to its preparation of the accompanying unaudited Consolidated Financial Statements. Based on these criteria, the Company has identified three segments: WSFS Bank, Cash Connect ® , and Wealth Management. The WSFS Bank segment provides financial products to commercial and consumer customers. Commercial and Consumer Banking, Commercial Real Estate Lending and other banking business units are operating departments of WSFS Bank. These departments share the same regulators, the same market, many of the same customers and provide similar products and services through the general infrastructure of the Bank. Accordingly, these departments are not considered discrete segments and are appropriately aggregated in the WSFS Bank segment. The Company's Cash Connect ® segment provides ATM vault cash, smart safe and other cash logistics services through strategic partnerships with several of the largest networks, manufacturers and service providers in the ATM industry. Cash Connect ® services non-bank and WSFS-branded ATMs and smart safes nationwide. The balance sheet category Cash in non-owned ATMs includes cash from which fee income is earned through bailment arrangements with customers of Cash Connect ® . The Wealth Management segment provides a broad array of planning and advisory services, investment management, trust services, and credit and deposit products to individual, corporate, and institutional clients through multiple integrated businesses. Bryn Mawr Trust ® is our predominant Private Wealth Management brand, providing advisory, investment management and trustee services to institutions, affluent and high-net-worth individuals. The Bryn Mawr Trust Company of Delaware provides personal trust and fiduciary services to families and individuals across the U.S. and internationally. WSFS Institutional Services ® provides trustee, agency, bankruptcy administration, custodial and commercial domicile services to institutional, corporate clients and special purpose vehicles. Private Wealth Management serves high-net-worth clients and institutions by providing trustee and advisory services, financial planning, customized investment strategies, brokerage products such as annuities and traditional banking services such as credit and deposit products tailored to its clientele. Private Wealth Management includes businesses that operate under the bank’s charter, through a broker/dealer and as a registered investment advisor (RIA). It generates revenue through a percentage fee based on account assets, fee-only arrangements, net interest income and other fee-only services such as estate administration, trust tax planning and custody. Powdermill ® is a multi-family office specializing in providing independent solutions to high-net-worth individuals, families and corporate executives through a coordinated, centralized approach. The following tables show segment results for the three and nine months ended September 30, 2023 and 2022: Three Months Ended September 30, 2023 Three Months Ended September 30, 2022 (Dollars in thousands) WSFS Bank Cash Connect ® Wealth Total WSFS Bank Cash Connect ® Wealth Total Statements of Income External customer revenues: Interest income $ 245,520 $ — $ 5,619 $ 251,139 $ 183,107 $ — $ 3,458 $ 186,565 Noninterest income 18,371 21,231 33,066 72,668 17,585 15,416 29,650 62,651 Total external customer revenues 263,891 21,231 38,685 323,807 200,692 15,416 33,108 249,216 Inter-segment revenues: Interest income 7,213 340 27,011 34,564 4,570 416 13,658 18,644 Noninterest income 7,384 499 190 8,073 6,906 431 222 7,559 Total inter-segment revenues 14,597 839 27,201 42,637 11,476 847 13,880 26,203 Total revenue 278,488 22,070 65,886 366,444 212,168 16,263 46,988 275,419 External customer expenses: Interest expense 60,133 — 8,404 68,537 8,923 — 811 9,734 Noninterest expenses 105,655 15,524 18,510 139,689 104,817 9,646 18,454 132,917 Provision for (recovery of) credit losses 18,544 — (130) 18,414 7,463 — (9) 7,454 Total external customer expenses 184,332 15,524 26,784 226,640 121,203 9,646 19,256 150,105 Inter-segment expenses: Interest expense 27,351 4,068 3,145 34,564 14,074 3,414 1,156 18,644 Noninterest expenses 689 1,391 5,993 8,073 653 1,185 5,721 7,559 Total inter-segment expenses 28,040 5,459 9,138 42,637 14,727 4,599 6,877 26,203 Total expenses 212,372 20,983 35,922 269,277 135,930 14,245 26,133 176,308 Income before taxes $ 66,116 $ 1,087 $ 29,964 $ 97,167 $ 76,238 $ 2,018 $ 20,855 $ 99,111 Income tax provision 22,904 25,767 Consolidated net income 74,263 73,344 Net income (loss) attributable to noncontrolling interest 97 (38) Net income attributable to WSFS $ 74,166 $ 73,382 Supplemental Information Capital expenditures for the period ended $ 1,131 $ — $ 10 $ 1,141 $ 3,213 $ 16 $ — $ 3,229 Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022 (Dollars in thousands) WSFS Bank Cash Connect ® Wealth Total WSFS Bank Cash Connect ® Wealth Total Statements of Income External customer revenues: Interest income $ 703,210 $ — $ 16,081 $ 719,291 $ 481,683 $ — $ 9,039 $ 490,722 Noninterest income 46,610 59,402 96,654 202,666 63,833 37,500 93,921 195,254 Total external customer revenues 749,820 59,402 112,735 921,957 545,516 37,500 102,960 685,976 Inter-segment revenues: Interest income 20,037 1,058 72,686 93,781 7,720 1,148 27,865 36,733 Noninterest income 21,545 1,455 389 23,389 20,103 1,220 569 21,892 Total inter-segment revenues 41,582 2,513 73,075 117,170 27,823 2,368 28,434 58,625 Total revenue 791,402 61,915 185,810 1,039,127 573,339 39,868 131,394 744,601 External customer expenses: Interest expense 152,582 — 19,733 172,315 20,475 — 1,243 21,718 Noninterest expenses 314,751 43,562 55,674 413,987 361,949 25,383 54,091 441,423 Provision for credit losses 62,589 — 666 63,255 34,647 — 46 34,693 Total external customer expenses 529,922 43,562 76,073 649,557 417,071 25,383 55,380 497,834 Inter-segment expenses: Interest expense 73,744 11,478 8,559 93,781 29,013 4,896 2,824 36,733 Noninterest expenses 1,844 4,221 17,324 23,389 1,789 3,436 16,667 21,892 Total inter-segment expenses 75,588 15,699 25,883 117,170 30,802 8,332 19,491 58,625 Total expenses 605,510 59,261 101,956 766,727 447,873 33,715 74,871 556,459 Income before taxes $ 185,892 $ 2,654 $ 83,854 $ 272,400 $ 125,466 $ 6,153 $ 56,523 $ 188,142 Income tax provision 66,880 49,929 Consolidated net income 205,520 138,213 Net income attributable to noncontrolling interest 272 287 Net income attributable to WSFS $ 205,248 $ 137,926 Supplemental Information Capital expenditures for the period ended $ 2,943 $ — $ 10 $ 2,953 $ 7,649 $ 16 $ — $ 7,665 The following table shows significant components of segment net assets as of September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 (Dollars in thousands) WSFS Bank Cash Connect ® Wealth Total WSFS Bank Cash Connect ® Wealth Total Statements of Financial Condition Cash and cash equivalents $ 241,531 $ 327,417 $ 42,532 $ 611,480 $ 317,022 $ 476,850 $ 43,386 $ 837,258 Goodwill 753,586 — 132,312 885,898 753,586 — 130,051 883,637 Other segment assets 18,132,659 11,662 399,293 18,543,614 17,824,946 10,429 358,485 18,193,860 Total segment assets $ 19,127,776 $ 339,079 $ 574,137 $ 20,040,992 $ 18,895,554 $ 487,279 $ 531,922 $ 19,914,755 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 15. COMMITMENTS AND CONTINGENCIES Secondary Market Loan Sales The Company typically sells newly originated residential mortgage loans in the secondary market to mortgage loan aggregators and to GSEs such as FHLMC, FNMA, and on a more limited basis, the FHLB. Loans held for sale are reflected on the unaudited Consolidated Statements of Financial Condition at fair value with changes in the value reflected in the unaudited Consolidated Statements of Income. Gains and losses are recognized at the time of sale. The Company periodically retains the servicing rights on residential mortgage loans sold which results in monthly service fee income. The mortgage servicing rights are included in Intangible assets on the unaudited Consolidated Statements of Financial Condition. Otherwise, the Company sells loans with servicing released on a nonrecourse basis. Rate-locked loan commitments that the Company intends to sell in the secondary market are accounted for as derivatives under ASC 815. The Company does not sell loans with recourse, except for standard loan sale contract provisions covering violations of representations and warranties and, under certain circumstances, early payment default by the borrower. These are customary repurchase provisions in the secondary market for residential mortgage loan sales. These provisions may include either an indemnification from loss or the repurchase of the loans. Repurchases and losses have been rare and no provision is made for losses at the time of sale. There was one repurchase during the nine months ended September 30, 2023 for $0.8 million and two repurchases for $0.8 million during the same period in 2022. Unfunded Lending Commitments At September 30, 2023 and December 31, 2022, the allowance for credit losses of unfunded lending commitments was $12.1 million and $11.9 million, respectively. A provision expense of $0.1 million and $0.2 million was recognized during the three and nine months ended September 30, 2023, respectively, compared to a provision expense of $0.7 million and $0.6 million during the three and nine months ended September 30, 2022, respectively. |
CHANGE IN ACCUMULATED OTHER COM
CHANGE IN ACCUMULATED OTHER COMPREHENSIVE LOSS | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
CHANGE IN ACCUMULATED OTHER COMPREHENSIVE LOSS | 16. CHANGE IN ACCUMULATED OTHER COMPREHENSIVE LOSS Accumulated other comprehensive loss includes unrealized gains and losses on available-for-sale investments, unrealized gains and losses on cash flow hedges, as well as unrecognized prior service costs and actuarial gains and losses on defined benefit pension plans. Changes to accumulated other comprehensive loss are presented, net of tax, as a component of stockholders’ equity. Amounts that are reclassified out of accumulated other comprehensive loss are recorded on the unaudited Consolidated Statements of Income either as a gain or loss. Changes to accumulated other comprehensive loss by component are shown, net of taxes, in the following tables for the period indicated: (Dollars in thousands) Net change in Net change Net Net change in fair value of derivatives used for cash flow hedges (1) Net change in equity method investments Total Balance, June 30, 2023 $ (550,890) $ (99,945) $ (4,571) $ (1,115) $ 462 $ (656,059) Other comprehensive (loss) income (127,523) — (3) (1,608) 192 (128,942) Less: Amounts reclassified from accumulated other comprehensive loss — 4,366 (48) (28) — 4,290 Net current-period other comprehensive (loss) income (127,523) 4,366 (51) (1,636) 192 (124,652) Balance, September 30, 2023 $ (678,413) $ (95,579) $ (4,622) $ (2,751) $ 654 $ (780,711) Balance, June 30, 2022 $ (395,213) $ (119,649) $ (4,746) $ 189 $ 541 $ (518,878) Other comprehensive (loss) income (202,520) (1) (4) — 25 (202,500) Less: Amounts reclassified from accumulated other comprehensive loss — 5,967 (27) (41) — 5,899 Net current-period other comprehensive (loss) income (202,520) 5,966 (31) (41) 25 (196,601) Balance, September 30, 2022 $ (597,733) $ (113,683) $ (4,777) $ 148 $ 566 $ (715,479) (1) Includes amortization of net gain for cash flow hedges terminated as of April 1, 2020. (Dollars in thousands) Net change in Net change Net Net change in fair value of derivatives used for cash flow hedges (1) Net change in equity method investments Total Balance, December 31, 2022 $ (563,533) $ (108,503) $ (4,482) $ 108 $ 566 $ (675,844) Other comprehensive (loss) income (114,880) — 2 (2,752) 88 (117,542) Less: Amounts reclassified from accumulated other comprehensive loss — 12,924 (142) (107) — 12,675 Net current-period other comprehensive (loss) income (114,880) 12,924 (140) (2,859) 88 (104,867) Balance, September 30, 2023 $ (678,413) $ (95,579) $ (4,622) $ (2,751) $ 654 $ (780,711) Balance, December 31, 2021 $ (33,873) $ 175 $ (4,691) $ 268 $ 353 $ (37,768) Other comprehensive (loss) income (2) (563,860) (119,769) (4) — 213 (683,420) Less: Amounts reclassified from accumulated other comprehensive loss — 5,911 (82) (120) — 5,709 Net current-period other comprehensive (loss) income (563,860) (113,858) (86) (120) 213 (677,711) Balance, September 30, 2022 $ (597,733) $ (113,683) $ (4,777) $ 148 $ 566 $ (715,479) (1) Includes amortization of net gain for cash flow hedges terminated as of April 1, 2020. (2) Includes $119.8 million, net of tax, of unrealized losses on transferred investment securities from available-for-sale to held-to-maturity. The unaudited Consolidated Statements of Income were impacted by components of other comprehensive loss as shown in the tables below: Three Months Ended September 30, Affected line item in unaudited Consolidated Statements of Income (Dollars in thousands) 2023 2022 Net unrealized holding losses on securities transferred between available-for-sale and held-to-maturity: Amortization of net unrealized losses to income during the period 5,745 7,851 Net interest income Income taxes (1,379) (1,884) Income tax provision Net of tax 4,366 5,967 Amortization of defined benefit pension plan-related items: Prior service credits (19) (19) Actuarial gains (44) (17) Total before tax (63) (36) Salaries, benefits and other compensation Income taxes 15 9 Income tax provision Net of tax (48) (27) Net unrealized gains on terminated cash flow hedges: Amortization of net unrealized gains to income during the period (37) (54) Interest and fees on loans and leases Income taxes 9 13 Income tax provision Net of tax (28) (41) Total reclassifications $ 4,290 $ 5,899 Nine Months Ended September 30, Affected line item in unaudited Consolidated Statements of Operations 2023 2022 Net unrealized holding losses on securities transferred between available-for-sale and held-to-maturity: Amortization of net unrealized losses to income during the period 17,005 7,777 Net interest income Income taxes (4,081) (1,866) Income tax provision Net of tax 12,924 5,911 Amortization of defined benefit pension plan-related items: Prior service credits (57) (57) Actuarial gains (130) (51) Total before tax (187) (108) Salaries, benefits and other compensation Income taxes 45 26 Income tax provision Net of tax (142) (82) Net unrealized gains on terminated cash flow hedges: Amortization of net unrealized gains to income during the period (141) (158) Interest and fees on loans and leases Income taxes 34 38 Income tax provision Net of tax (107) (120) Total reclassifications $ 12,675 $ 5,709 |
LEGAL AND OTHER PROCEEDINGS
LEGAL AND OTHER PROCEEDINGS | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
LEGAL AND OTHER PROCEEDINGS | 17. LEGAL AND OTHER PROCEEDINGS In accordance with the current accounting standards for loss contingencies, the Company establishes reserves for litigation-related matters that arise in the ordinary course of its business activities when it is probable that a loss associated with a claim or proceeding has been incurred and the amount of the loss can be reasonably estimated. Litigation claims and proceedings of all types are subject to many uncertain factors that generally cannot be predicted with assurance. In addition, the Company's defense of litigation claims may result in legal fees, which it expenses as incurred. There were no material changes or additions to other significant pending legal or other proceedings involving the Company other than those arising out of routine operations. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 74,166 | $ 73,382 | $ 205,248 | $ 137,926 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation In preparing the unaudited Consolidated Financial Statements, the Company is required to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. Amounts subject to significant estimates include the allowance for credit losses (including loans and leases held for investment, investment securities available-for-sale and held-to-maturity), lending-related commitments, goodwill, intangible assets, post-retirement benefit obligations, the fair value of financial instruments, and income taxes. Among other effects, changes to these estimates could result in future impairments of investment securities, goodwill and intangible assets, the establishment of additional allowance and lending-related commitment reserves, changes in the fair value of financial instruments, as well as increased post-retirement benefits and income tax expense. The Company's accounting and reporting policies conform to Generally Accepted Accounting Principles in the U.S. (GAAP), prevailing practices within the banking industry for interim financial information and Rule 10-01 of SEC Regulation S-X (Rule 10-01). Rule 10-01 does not require us to include all information and notes that would be required in audited financial statements. Certain prior period amounts have been reclassified to conform with current period presentation. Operating results for the periods presented are not necessarily indicative of the results that may be expected for any future quarters or for the year ending December 31, 2023. These unaudited, interim Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and related notes included in the Annual Report on Form 10-K for the year ended December 31, 2022 (the 2022 Annual Report on Form 10-K) that was filed with the SEC on February 28, 2023 and is available at www.sec.gov or on the website at www.wsfsbank.com . All significant intercompany accounts and transactions were eliminated in consolidation. |
Past Due and Nonaccrual Loans and Allowance for Credit Losses - Loans and Leases | Past Due and Nonaccrual Loans Past due loans are defined as loans contractually past due 90 days or more as to principal or interest payments. Past due loans 90 days or more that remain in accrual status are considered well secured and in the process of collection. Nonaccruing loans are those on which the accrual of interest has ceased. Loans are placed on nonaccrual status immediately if, in the opinion of the Company, collection is doubtful, or when principal or interest is past due 90 days or more and the loan is not well secured and in the process of collection. Interest accrued but not collected at the date a loan is placed on nonaccrual status is reversed and charged against interest income. In addition, the amortization of net deferred loan fees is suspended when a loan is placed on nonaccrual status. Subsequent cash receipts are applied either to the outstanding principal balance or recorded as interest income, depending on the Company’s assessment of the ultimate collectability of principal and interest. Loans are returned to accrual status when the Company assesses that the borrower has the ability to make all principal and interest payments in accordance with the terms of the loan (i.e., a consistent repayment record, generally six consecutive payments, has been demonstrated). For loans greater than 90 days past due, unless loans are well-secured and collection is imminent, their respective reserves are generally charged off once the loss has been confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged off and expected to be charged off. A loan, for which the terms have been modified in the current reporting period in the form of principal forgiveness, an interest rate reduction, an other than-insignificant payment delay, or a term extension to a borrower experiencing financial difficulty, is considered a troubled loan. The assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification. Principal balances are generally not forgiven when a loan is modified as a troubled loan. Nonaccruing troubled loans remain in nonaccrual status until there has been a period of sustained repayment performance demonstrated and repayment is reasonably assured. Since the effect of most troubled loans are already included in the Company’s estimate of expected credit losses, a change to the allowance for credit losses is generally not recorded upon modification. For additional detail regarding past due and nonaccrual loans, see Note 7. Allowance for Credit Losses - Loans and Leases The Company establishes its allowance in accordance with guidance provided in ASC 326, Financial Instruments - Credit Losses . The allowance for credit losses includes quantitative and qualitative factors that comprise the Company's current estimate of expected credit losses, including the Company's portfolio mix and segmentation, modeling methodology, historical loss experience, relevant available information from internal and external sources relating to qualitative adjustment factors, prepayment speeds and reasonable and supportable forecasts about future economic conditions. The Company's portfolio segments, established based on similar risk characteristics and loss behaviors, are: • Commercial Loans and Leases: Commercial and industrial - real estate secured, commercial and industrial - non-real estate secured, owner-occupied commercial, commercial mortgages, construction and commercial small business leases, and • Residential and Consumer Loans: Residential mortgage, equity secured lines and loans, installment loans, unsecured lines of credit, originated education loans and previously acquired education loans. Expected credit losses are net of expected recoveries and estimated over the contractual term, adjusted for expected prepayments. The contractual term excludes any extensions, renewals and modifications unless they are not unconditionally cancellable. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Expected prepayments are based on historical experience and considers adjustments for current and future economic conditions. The allowance includes two primary components: (i) an allowance established on loans which share similar risk characteristics collectively evaluated for credit losses (collective basis) and (ii) an allowance established on loans which do not share similar risk characteristics with any loan segment and are individually evaluated for credit losses (individual basis). Loans that share similar risk characteristics are collectively reviewed for credit loss and are evaluated based on historical loss experience, adjusted for current economic conditions and future economic forecasts. Estimated losses are determined differently for commercial and residential and consumer loans, and each portfolio segment is further segmented by internally assessed risk ratings. The Company uses a single scenario third-party economic forecast to adjust the calculated historical loss rates of the portfolio segments to incorporate the effects of current and future economic conditions. The Company's economic forecast considers the general health of the economy, the interest rate environment, real estate pricing and market risk. The Company's forecast extends out 6 quarters (the forecast period) and reverts to the historical loss rates on a straight-line basis over 4 quarters (the reversion period) as it believes this to be reasonable and supportable in the current environment. The economic forecast and reversion periods will be evaluated periodically by the Company and updated as appropriate. The historical loss rates for commercial loans are estimated by determining the probability of default (PD) and expected loss given default (LGD) and are applied to the loans' exposure at default. The probability of default is calculated based on the historical rate of migration to an event of credit loss during the look-back period. The historical loss rates for consumer loans is calculated based on average net loss rates over the same look-back period. The current look-back period is 51 quarters which ensures historical loss rates are adequately considering losses within a full credit cycle. Loans that do not share similar risk characteristics with any loan segments are evaluated on an individual basis. These loans, which may include troubled loans, are not included in the collective basis evaluation. When it is probable the Company will not collect all principal and interest due according to their contractual terms, which is assessed based on the credit characteristics of the loan and/or payment status, these loans are individually reviewed and measured for potential credit loss. The amount of the potential credit loss is measured using any of the following three methods: (i) the present value of expected future cash flows discounted at the loan’s effective interest rate; (ii) the fair value of collateral if the loan is collateral dependent; or (iii) the loan’s observable market price. If the measured fair value of the loan is less than the amortized cost basis of the loan, an allowance for credit loss is recorded. For collateral dependent loans, the expected credit losses at the individual asset level are the difference between the collateral's fair value (less cost to sell) and the amortized cost. Qualitative adjustment factors consider various internal and external conditions which are allocated among loan segments and take into consideration: • Current underwriting policies, staff and portfolio concentrations, • Risk rating accuracy, credit and administration, • Internal risk emergence (including internal trends of delinquency, and criticized loans by segment), • Economic forecasts and conditions - locally and nationally (including market trends impacting collateral values), which is separate from or in addition to the third-party economic forecast described above, and • Competitive environment, as it could impact loan structure and underwriting. These factors are based on their relative standing compared to the period in which historical losses are used in quantitative reserve estimates and current directional trends, and reasonable and supportable forecasts. Qualitative factors can add to or subtract from quantitative reserves. The Company's loan officers and risk managers meet at least quarterly to discuss and review the conditions and risks associated with individual problem loans. In addition, various regulatory agencies periodically review the Company's loan ratings and allowance for credit losses and the Bank's internal loan review department performs recurring loan reviews. Accrued interest receivable on loans is excluded from the estimate of credit losses and is included in Accrued interest receivable on the unaudited Consolidated Statements of Financial Condition. For additional detail regarding the allowance for credit losses and the provision for credit losses, see Note 7. |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS Accounting Guidance Adopted in 2023 ASU No. 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures: In March 2022, the FASB issued ASU No. 2022-02 , Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The guidance eliminates the accounting guidance for troubled debt restructurings by creditors (ASC 310-40) while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. The guidance also requires that an entity disclose current-period write-offs by year of origination for financing receivables and net investments in leases within the scope of Topic 326. The Company adopted this guidance prospectively on January 1, 2023. For further details on the impact of the adoption and accounting policies, see updated Significant Accounting Policies, as described above, and troubled loans disclosures in Note 7 - Allowance for Credit Losses and Credit Quality Information . Accounting Guidance Pending Adoption as of September 30, 2023 ASU No. 2023-01, Leases (Topic 842) Common Control Agreements: In March 2023, the FASB issued ASU No. 2023-01 , Leases (Topic 842) Common Control Agreements. The amendment clarifies the accounting for leasehold improvements associated with common control leases by allowing the lessee to amortize the leasehold improvements over the useful life of the common control group’s use of the underlying asset, regardless of the lease term. The guidance is effective for fiscal years beginning after December 15, 2023. Early adoption is permitted. Adoption is required on a modified retrospective basis, consistent with the Company's adoption of Topic 842. The Company does not expect this update to have a material impact on the Consolidated Financial Statements. ASU No. 2023-02, Investments—Equity Method and Joint Ventures (Topic 323) Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method: In March 2023, The FASB issued ASU 2023-02, Investments—Equity Method and Joint Ventures (Topic 323) Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method . The amendments permit reporting entities to elect to account for any equity investments in a tax credit program using the proportional amortization method if certain conditions are met. The amendments are effective for fiscal years beginning after December 15, 2023. Early adoption is permitted. Adoption is required on a prospective, modified retrospective, or retrospective basis depending on the amendment. The Company does not expect this update to have a material impact on the Consolidated Financial Statements. |
Fair Value Measurement | Available-for-sale securities Securities classified as available-for-sale are reported at fair value using Level 2 inputs. The Company believes that this Level 2 designation is appropriate under ASC 820-10, as these securities are GSEs and GNMA securities with almost all fixed income securities, none are exchange traded, and all are priced by correlation to observed market data. For these securities the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, U.S. government and agency yield curves, live trading levels, trade execution data, market consensus prepayment speeds, credit information, and the security’s terms and conditions, among other factors. Other investments Other investments includes equity investments without readily determinable fair values and equity method investments, which are categorized as Level 3. The Company’s equity investments without readily determinable fair values are held at cost, and are adjusted for any observable transactions during the reporting period and its equity method investments are initially recorded at cost based on the Company’s percentage ownership in the investee, and are adjusted to reflect the recognition of the Company’s proportionate share of income or loss of the investee based on the investee’s earnings. Other real estate owned Other real estate owned consists of loan collateral which has been repossessed through foreclosure or other measures. Initially, foreclosed assets are recorded at the fair value of the collateral less estimated selling costs. Subsequent to foreclosure, valuations are updated periodically and the assets may be marked down further, reflecting a new cost basis. The fair value of other real estate owned was estimated using Level 3 inputs based on appraisals obtained from third parties. Loans held for sale The fair value of loans held for sale is based on estimates using Level 2 inputs. These inputs are based on pricing information obtained from wholesale mortgage banks and brokers and applied to loans with similar interest rates and maturities. Other assets Other assets include the fair value of interest rate products, derivatives on the residential mortgage held for sale loan pipeline, and risk participation agreements. Valuation of interest rate products is obtained from an independent pricing service and also from the derivative counterparty. Valuation of the derivative related to the residential mortgage held for sale loan pipeline is based on valuation of the loans held for sale portfolio as described above in Loans held for sale . Valuation of risk participation agreements are obtained from an independent pricing service. Other liabilities Other liabilities include the fair value of interest rate products, derivatives on the residential mortgage held for sale loan pipeline, foreign exchange forward contracts, risk participation agreements, and derivative related to the sale of certain Visa Class B common shares. Valuation of interest rate products is obtained from an independent pricing service and also from the derivative counterparty. Valuation of the derivative related to the residential mortgage held for sale loan pipeline is based on valuation of the loans held for sale portfolio as described above in Loans held for sale. Valuation of foreign exchange forward contracts and risk participation agreements are obtained from an independent pricing service. Valuation of the derivative related to the sale of certain Visa Class B common shares is based on: (i) the agreed upon graduated fee structure; (ii) the length of time until the resolution of the Visa covered litigation; and (iii) the estimated impact of dilution in the conversion ratio of Class B shares resulting from changes in the Visa covered litigation. FAIR VALUE OF FINANCIAL INSTRUMENTS The reported fair values of financial instruments are based on a variety of factors. In certain cases, fair values represent quoted market prices for identical or comparable instruments. In other cases, fair values have been estimated based on assumptions regarding the amount and timing of estimated future cash flows that are discounted to reflect current market rates and varying degrees of risk. Accordingly, the fair values may not represent actual values of the financial instruments that could have been realized as of period-end or that will be realized in the future. The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value: Cash, cash equivalents, and restricted cash For cash and short-term investment securities, including due from banks, federal funds sold or purchased under agreements to resell and interest-bearing deposits with other banks, the carrying amount is a reasonable estimate of fair value. Investment securities Investment securities include debt securities classified as held-to-maturity or available-for-sale. Fair value is estimated using quoted prices for similar securities, which the Company obtains from a third party vendor. The Company uses one of the largest providers of securities pricing to the industry and management periodically assesses the inputs used by this vendor to price the various types of securities owned by the Company to validate the vendor’s methodology as described above in available-for-sale securities. Other investments Other investments includes equity investments without readily determinable fair values (see discussion in “Fair Value of Financial Assets and Liabilities” section above). Loans held for sale Loans held for sale are carried at their fair value (see discussion in “Fair Value of Financial Assets and Liabilities” section above). Loans and leases Loans and leases are segregated by portfolio segments with similar financial characteristics. The fair values of loans and leases, with the exception of reverse mortgages, are estimated by discounting expected cash flows using the current rates at which similar loans would be made to borrowers with comparable credit ratings and for similar remaining maturities. The fair values of reverse mortgages are based on the net present value of the expected cash flows using a discount rate specific to the reverse mortgages portfolio. The fair value of nonperforming loans is based on recent external appraisals of the underlying collateral, if the loan is collateral dependent. Estimated cash flows, discounted using a rate commensurate with current rates and the risk associated with the estimated cash flows, are used if appraisals are not available. This technique does contemplate an exit price. Stock in the Federal Home Loan Bank (FHLB) of Pittsburgh The fair value of FHLB stock is assumed to be equal to its cost basis, since the stock is non-marketable but redeemable at its par value. Accrued interest receivable The carrying amounts of interest receivable approximate fair value. Other assets Other assets include the fair value of interest rate products, derivatives on the residential mortgage held for sale loan pipeline, and risk participation agreements (see discussion in “Fair Value of Financial Assets and Liabilities” section above). Deposits The fair value of deposits with no stated maturity, such as noninterest-bearing demand deposits, money market and interest-bearing demand deposits, is assumed to be equal to the amount payable on demand. The fair value of time deposits is based on the discounted value of contractual cash flows. The discount rate is estimated using rates currently offered for deposits with comparable remaining maturities. Borrowed funds Rates currently available to the Company for debt with similar terms and remaining maturities are used to estimate the fair value of existing debt. Off-balance sheet instruments The fair value of off-balance sheet instruments, including swap guarantees of $7.7 million at September 30, 2023 and $10.4 million at December 31, 2022, respectively, and standby letters of credit, approximates the recorded net deferred fee amounts. Because letters of credit are generally not assignable by either the Company or the borrower, they only have value to the Company and the borrower. In determining the fair value of the swap guarantees, the Company assesses the underlying credit risk exposure for each borrower in a paying position to the third-party financial institution. Accrued interest payable The carrying amounts of interest payable approximate fair value. Other liabilities Other liabilities include the fair value of interest rate products, derivatives on the residential mortgage held for sale loan pipeline, foreign exchange forward contracts, risk participation agreements, and derivative related to the sale of certain Visa Class B common shares (see discussion in “Fair Value of Financial Assets and Liabilities” section above). |
NONINTEREST INCOME (Tables)
NONINTEREST INCOME (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 September 30, Nine Months Ended September 30, (Dollars in thousands) 2023 2022 2023 2022 Bailment fees $ 9,982 $ 6,306 $ 28,051 $ 13,105 Interchange fees 3,885 3,870 11,764 11,859 Other card and ATM fees 1,002 817 2,845 2,482 Total credit/debit card and ATM income $ 14,869 $ 10,993 $ 42,660 $ 27,446 |
Schedule of Investment Management and Fiduciary Income | The following table presents the components of investment management and fiduciary income: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2023 2022 2023 2022 Trust fees $ 22,062 $ 19,170 $ 64,514 $ 58,658 Wealth management and advisory fees 10,658 10,334 31,061 32,219 Total investment management and fiduciary income $ 32,720 $ 29,504 $ 95,575 $ 90,877 |
Schedule of Deposit Service Charges | The following table presents the components of deposit service charges: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2023 2022 2023 2022 Service fees $ 4,382 $ 3,933 $ 12,833 $ 11,789 Return and overdraft fees 1,851 2,164 5,218 5,835 Other deposit service fees 301 165 799 534 Total deposit service charges $ 6,534 $ 6,262 $ 18,850 $ 18,158 |
Schedule of Other Income | The following table presents the components of other income: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2023 2022 2023 2022 Managed service fees $ 5,301 $ 4,866 $ 15,316 $ 13,091 Currency preparation 1,331 1,104 3,955 2,904 ATM loss protection 643 681 1,938 1,963 Capital markets revenue 3,581 793 8,170 5,738 Miscellaneous products and services (1) 3,122 5,408 4,381 17,429 Total other income $ 13,978 $ 12,852 $ 33,760 $ 41,125 (1) Includes commissions income from BMT Insurance Advisors (BMTIA) in 2022. The BMTIA business was sold at the end of the second quarter of 2022. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 September 30, Nine Months Ended September 30, (Dollars and shares in thousands, except per share data) 2023 2022 2023 2022 Numerator: Net income attributable to WSFS $ 74,166 $ 73,382 $ 205,248 $ 137,926 Denominator: Weighted average basic shares 60,942 63,048 61,265 64,064 Dilutive potential common shares 97 180 103 219 Weighted average fully diluted shares 61,039 63,228 $ 61,368 $ 64,283 Earnings per share: Basic $ 1.22 $ 1.16 $ 3.35 $ 2.15 Diluted $ 1.22 $ 1.16 $ 3.34 $ 2.15 Outstanding common stock equivalents having no dilutive effect 18 2 18 7 |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Debt Securities, Available-for-sale | The following tables detail the amortized cost, allowance for credit losses and the estimated fair value of the Company's investments in available-for-sale and held-to-maturity debt securities. None of the Company's investments in debt securities are classified as trading. September 30, 2023 (Dollars in thousands) Amortized Cost Gross Gross Allowance for Credit Losses Fair Available-for-Sale Debt Securities Collateralized mortgage obligation (CMO) $ 573,393 $ — $ 118,729 $ — $ 454,664 Fannie Mae (FNMA) mortgage-backed securities (MBS) 3,608,095 — 694,683 — 2,913,412 Freddie Mac (FHLMC) MBS 128,999 — 18,280 — 110,719 Ginnie Mae (GNMA) MBS 47,621 — 4,870 — 42,751 Government-sponsored enterprises (GSE) agency notes 226,082 — 56,087 — 169,995 $ 4,584,190 $ — $ 892,649 $ — $ 3,691,541 Held-to-Maturity Debt Securities (1) FNMA MBS $ 881,844 $ — $ 129,388 $ — $ 752,456 State and political subdivisions 187,035 24 11,827 8 175,224 $ 1,068,879 $ 24 $ 141,215 $ 8 $ 927,680 (1) Held-to-maturity securities transferred from available-for-sale are included in held-to-maturity at fair value basis at the time of transfer. The amortized cost of transferred held-to-maturity securities included net unrealized losses of $125.8 million at September 30, 2023, which are offset in Accumulated other comprehensive loss . At the time of transfer, there was no allowance for credit loss on the available-for-sale securities. Subsequent to transfer, the securities were evaluated for credit loss. December 31, 2022 (Dollars in thousands) Amortized Cost Gross Gross Allowance for Credit Losses Fair Available-for-Sale Debt Securities CMO $ 608,834 $ — $ 102,454 $ — $ 506,380 FNMA MBS 3,823,036 — 572,778 — 3,250,258 FHLMC MBS 135,554 — 13,555 — 121,999 GNMA MBS 39,116 — 2,978 — 36,138 GSE agency notes 228,010 — 49,725 — 178,285 $ 4,834,550 $ — $ 741,490 $ — $ 4,093,060 Held-to-Maturity Debt Securities (1) FNMA MBS $ 909,498 $ — $ 68,677 $ — $ 840,821 State and political subdivisions 201,631 532 3,372 10 198,781 Foreign bonds 500 2 — — 502 $ 1,111,629 $ 534 $ 72,049 $ 10 $ 1,040,104 (1) Held-to-maturity securities transferred from available-for-sale are included in held-to-maturity at fair value at the time of transfer. The amortized cost of transferred held-to-maturity securities included net unrealized losses of $142.8 million at December 31, 2022, which are offset in Accumulated other comprehensive loss . At the time of transfer, there was no allowance for credit loss on the available-for-sale securities. Subsequent to transfer, the securities were evaluated for credit loss. |
Schedule of Debt Securities, Held-to-maturity | The following tables detail the amortized cost, allowance for credit losses and the estimated fair value of the Company's investments in available-for-sale and held-to-maturity debt securities. None of the Company's investments in debt securities are classified as trading. September 30, 2023 (Dollars in thousands) Amortized Cost Gross Gross Allowance for Credit Losses Fair Available-for-Sale Debt Securities Collateralized mortgage obligation (CMO) $ 573,393 $ — $ 118,729 $ — $ 454,664 Fannie Mae (FNMA) mortgage-backed securities (MBS) 3,608,095 — 694,683 — 2,913,412 Freddie Mac (FHLMC) MBS 128,999 — 18,280 — 110,719 Ginnie Mae (GNMA) MBS 47,621 — 4,870 — 42,751 Government-sponsored enterprises (GSE) agency notes 226,082 — 56,087 — 169,995 $ 4,584,190 $ — $ 892,649 $ — $ 3,691,541 Held-to-Maturity Debt Securities (1) FNMA MBS $ 881,844 $ — $ 129,388 $ — $ 752,456 State and political subdivisions 187,035 24 11,827 8 175,224 $ 1,068,879 $ 24 $ 141,215 $ 8 $ 927,680 (1) Held-to-maturity securities transferred from available-for-sale are included in held-to-maturity at fair value basis at the time of transfer. The amortized cost of transferred held-to-maturity securities included net unrealized losses of $125.8 million at September 30, 2023, which are offset in Accumulated other comprehensive loss . At the time of transfer, there was no allowance for credit loss on the available-for-sale securities. Subsequent to transfer, the securities were evaluated for credit loss. December 31, 2022 (Dollars in thousands) Amortized Cost Gross Gross Allowance for Credit Losses Fair Available-for-Sale Debt Securities CMO $ 608,834 $ — $ 102,454 $ — $ 506,380 FNMA MBS 3,823,036 — 572,778 — 3,250,258 FHLMC MBS 135,554 — 13,555 — 121,999 GNMA MBS 39,116 — 2,978 — 36,138 GSE agency notes 228,010 — 49,725 — 178,285 $ 4,834,550 $ — $ 741,490 $ — $ 4,093,060 Held-to-Maturity Debt Securities (1) FNMA MBS $ 909,498 $ — $ 68,677 $ — $ 840,821 State and political subdivisions 201,631 532 3,372 10 198,781 Foreign bonds 500 2 — — 502 $ 1,111,629 $ 534 $ 72,049 $ 10 $ 1,040,104 (1) Held-to-maturity securities transferred from available-for-sale are included in held-to-maturity at fair value at the time of transfer. The amortized cost of transferred held-to-maturity securities included net unrealized losses of $142.8 million at December 31, 2022, which are offset in Accumulated other comprehensive loss . At the time of transfer, there was no allowance for credit loss on the available-for-sale securities. Subsequent to transfer, the securities were evaluated for credit loss. Three months ended September 30, Nine months ended September 30, (Dollars in thousands) 2023 2022 2023 2022 Allowance for credit losses: Beginning balance $ 8 $ 6 $ 10 $ 4 Provision for (recovery of) credit losses — 4 (2) 6 Ending balance $ 8 $ 10 $ 8 $ 10 |
Schedule of Maturities of Investment Securities Available-for-Sale and Held-to-Maturity | The scheduled maturities of available-for-sale debt securities at September 30, 2023 and December 31, 2022 are presented in the table below: Available-for-Sale Amortized Fair (Dollars in thousands) Cost Value September 30, 2023 (1) Within one year $ — $ — After one year but within five years 87,314 81,548 After five years but within ten years 577,578 465,454 After ten years 3,919,298 3,144,539 $ 4,584,190 $ 3,691,541 December 31, 2022 (1) Within one year $ — $ — After one year but within five years 83,014 77,499 After five years but within ten years 465,777 398,607 After ten years 4,285,759 3,616,954 $ 4,834,550 $ 4,093,060 (1) Actual maturities could differ from contractual maturities. The scheduled maturities of held-to-maturity debt securities at September 30, 2023 and December 31, 2022 are presented in the table below: Held-to-Maturity Amortized Fair (Dollars in thousands) Cost Value September 30, 2023 (1) Within one year $ — $ — After one year but within five years 9,793 9,373 After five years but within ten years 45,306 42,615 After ten years 1,013,780 875,692 $ 1,068,879 $ 927,680 December 31, 2022 (1) Within one year $ 731 $ 732 After one year but within five years 9,530 9,476 After five years but within ten years 46,170 45,944 After ten years 1,055,198 983,952 $ 1,111,629 $ 1,040,104 (1) Actual maturities could differ from contractual maturities. |
Schedule of Investment Securities' Gross Unrealized Losses and Fair Value by Investment Category | For debt securities in an unrealized loss position, the table below shows the gross unrealized losses and fair value by investment category and length of time that individual debt securities were in a continuous unrealized loss position at September 30, 2023. 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 $ — $ — $ 454,664 $ 118,729 $ 454,664 $ 118,729 FNMA MBS 8,792 467 2,904,620 694,216 2,913,412 694,683 FHLMC MBS 7 — 110,712 18,280 110,719 18,280 GNMA MBS 11,421 654 31,330 4,216 42,751 4,870 GSE agency notes — — 169,995 56,087 169,995 56,087 $ 20,220 $ 1,121 $ 3,671,321 $ 891,528 $ 3,691,541 $ 892,649 For debt securities in an unrealized loss position, the table below shows the gross unrealized losses and fair value by investment category and length of time that individual debt securities were in a continuous unrealized loss position at December 31, 2022. 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 $ 158,449 $ 13,855 $ 347,931 $ 88,599 $ 506,380 $ 102,454 FNMA MBS 1,237,560 145,752 2,012,698 427,026 3,250,258 572,778 FHLMC MBS 102,321 9,268 19,671 4,287 121,992 13,555 GNMA MBS 32,076 2,265 4,030 713 36,106 2,978 GSE agency notes — — 178,285 49,725 178,285 49,725 $ 1,530,406 $ 171,140 $ 2,562,615 $ 570,350 $ 4,093,021 $ 741,490 |
Schedule of Held-to-Maturity Credit Quality Indicators | The following table summarizes the amortized cost of debt securities held-to-maturity as of September 30, 2023, aggregated by credit quality indicator: (Dollars in thousands) FNMA MBS State and political subdivisions A+ rated or higher $ — $ 187,035 Not rated 881,844 — Ending balance $ 881,844 $ 187,035 The following table summarizes the amortized cost of debt securities held-to-maturity as of December 31, 2022, aggregated by credit quality indicator: (Dollars in thousands) FNMA MBS State and political subdivisions Foreign bonds A+ rated or higher $ — $ 201,631 $ 500 Not rated 909,498 — — Ending balance $ 909,498 $ 201,631 $ 500 |
LOANS AND LEASES (Tables)
LOANS AND LEASES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Schedule of Loan and Lease Portfolio by Category | The following table shows the Company's loan and lease portfolio by category: (Dollars in thousands) September 30, 2023 December 31, 2022 Commercial and industrial $ 2,644,039 $ 2,575,345 Owner-occupied commercial 1,924,171 1,809,582 Commercial mortgages 3,645,723 3,351,084 Construction 1,043,568 1,044,049 Commercial small business leases 605,698 558,981 Residential (1) 858,111 761,882 Consumer (2) 1,957,082 1,810,930 12,678,392 11,911,853 Less: Allowance for credit losses 175,988 151,861 Net loans and leases $ 12,502,404 $ 11,759,992 (1) Includes reverse mortgages at fair value of $2.8 million at September 30, 2023 and $2.4 million at December 31, 2022. (2) Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans. |
ALLOWANCE FOR CREDIT LOSSES A_2
ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Schedule of Allowance for Loan Losses and Loan Balances | The following tables provide the activity of allowance for credit losses and loan balances for the three and nine months ended September 30, 2023 and 2022. The increase was primarily due to the impacts of the economic uncertainty and forecast and net loan growth. (Dollars in thousands) Commercial and Industrial (1) Owner-occupied Commercial Construction Residential (2) Consumer (3) Total Three months ended September 30, 2023 Allowance for credit losses Beginning balance $ 62,783 $ 6,335 $ 31,937 $ 9,228 $ 5,043 $ 56,543 $ 171,869 Charge-offs (10,675) — (300) — — (5,872) (16,847) Recoveries 2,124 14 1 1 55 357 2,552 Provision 7,438 1,501 1,549 2,088 253 5,585 18,414 Ending balance $ 61,670 $ 7,850 $ 33,187 $ 11,317 $ 5,351 $ 56,613 $ 175,988 Nine months ended September 30, 2023 Allowance for credit losses Beginning balance $ 59,394 $ 6,019 $ 21,473 $ 6,987 $ 4,668 $ 53,320 $ 151,861 Charge-offs (30,496) (184) (300) — (33) (15,374) (46,387) Recoveries 5,554 50 4 532 211 906 7,257 Provision 27,218 1,965 12,010 3,798 505 17,761 63,257 Ending balance $ 61,670 $ 7,850 $ 33,187 $ 11,317 $ 5,351 $ 56,613 $ 175,988 Period-end allowance allocated to: Loans evaluated on an individual basis $ 1,054 $ 161 $ — $ 1,600 $ — $ — $ 2,815 Loans evaluated on a collective basis 60,616 7,689 33,187 9,717 5,351 56,613 173,173 Ending balance $ 61,670 $ 7,850 $ 33,187 $ 11,317 $ 5,351 $ 56,613 $ 175,988 Period-end loan balances: Loans evaluated on an individual basis $ 26,355 $ 16,442 $ 7,918 $ 4,828 $ 5,838 $ 1,798 $ 63,179 Loans evaluated on a collective basis 3,223,382 1,907,729 3,637,805 1,038,740 849,502 1,955,284 12,612,442 Ending balance $ 3,249,737 $ 1,924,171 $ 3,645,723 $ 1,043,568 $ 855,340 $ 1,957,082 $ 12,675,621 (1) Includes commercial small business leases. (2) Period-end loan balance excludes reverse mortgages at fair value of $2.8 million. (3) Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans. (Dollars in thousands) Commercial and Industrial (1) Owner - Commercial Construction Residential (2) Consumer (3) Total Three months ended September 30, 2022 Allowance for credit losses Beginning balance $ 60,921 $ 5,510 $ 23,663 $ 5,058 $ 4,988 $ 41,830 $ 141,970 Charge-offs (5,120) — (544) — — (1,834) (7,498) Recoveries 3,194 4 101 653 207 114 4,273 Provision (credit) 889 489 (1,686) 788 (377) 7,347 7,450 Ending balance $ 59,884 $ 6,003 $ 21,534 $ 6,499 $ 4,818 $ 47,457 $ 146,195 Nine months ended September 30, 2022 Allowance for loan losses Beginning balance $ 49,967 $ 4,574 $ 11,623 $ 1,903 $ 3,352 $ 23,088 $ 94,507 Initial allowance on acquired PCD loans 22,614 595 2,684 71 61 78 26,103 Charge-offs (11,308) (179) (581) — (186) (4,062) (16,316) Recoveries 4,667 271 223 653 737 663 7,214 (Credit) provision (4) (6,056) 742 7,585 3,872 854 27,690 34,687 Ending balance $ 59,884 $ 6,003 $ 21,534 $ 6,499 $ 4,818 $ 47,457 $ 146,195 Period-end allowance allocated to: Loans evaluated on an individual basis $ 5,348 $ — $ — $ — $ — $ — $ 5,348 Loans evaluated on a collective basis 54,536 6,003 21,534 6,499 4,818 47,457 140,847 Ending balance $ 59,884 $ 6,003 $ 21,534 $ 6,499 $ 4,818 $ 47,457 $ 146,195 Period-end loan balances: Loans evaluated on an individual basis $ 21,565 $ 1,713 $ 9,483 $ 5,360 $ 6,451 $ 1,884 $ 46,456 Loans evaluated on a collective basis 3,147,913 1,786,878 3,270,896 1,022,843 752,142 1,675,244 11,655,916 Ending balance $ 3,169,478 $ 1,788,591 $ 3,280,379 $ 1,028,203 $ 758,593 $ 1,677,128 $ 11,702,372 (1) Includes commercial small business leases. (2) Period-end loan balance excludes reverse mortgages at fair value of $3.0 million. (3) Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans. (4) Includes $23.5 million initial provision for credit losses on non-PCD loans. |
Schedule of Nonaccrual and Past Due Loans | The following tables show nonaccrual and past due loans presented at amortized cost at the date indicated: September 30, 2023 (Dollars in thousands) 30–89 Days Greater Total Past Accruing Nonaccrual Loans With No Allowance Nonaccrual Total Commercial and industrial (1) $ 10,183 $ 1,119 $ 11,302 $ 3,212,140 $ 21,138 $ 5,157 $ 3,249,737 Owner-occupied commercial 1,669 — 1,669 1,907,355 14,085 1,062 1,924,171 Commercial mortgages 16,691 — 16,691 3,622,326 6,706 — 3,645,723 Construction 8,285 2,016 10,301 1,028,439 726 4,102 1,043,568 Residential (2) 6,764 — 6,764 846,045 2,531 — 855,340 Consumer (3) 15,580 11,222 26,802 1,928,327 1,953 — 1,957,082 Total $ 59,172 $ 14,357 $ 73,529 $ 12,544,632 $ 47,139 $ 10,321 $ 12,675,621 % of Total Loans 0.47 % 0.11 % 0.58 % 98.97 % 0.37 % 0.08 % 100 % (1) Includes commercial small business leases. (2) Residential accruing current balances excludes reverse mortgages at fair value of $2.8 million. (3) Includes $16.1 million of delinquent, but still accruing, U.S. government-guaranteed student loans that carry little risk of credit loss. December 31, 2022 (Dollars in thousands) 30–89 Days Greater Total Past Accruing Nonaccrual Loans (1) Total Commercial and industrial (2) $ 10,767 $ 311 $ 11,078 $ 3,116,478 $ 6,770 $ 3,134,326 Owner-occupied commercial 3,500 474 3,974 1,805,222 386 1,809,582 Commercial mortgages 2,137 237 2,374 3,343,551 5,159 3,351,084 Construction — — — 1,038,906 5,143 1,044,049 Residential (3) 2,563 — 2,563 753,703 3,199 759,465 Consumer (4) 12,263 15,513 27,776 1,781,009 2,145 1,810,930 Total (4) $ 31,230 $ 16,535 $ 47,765 $ 11,838,869 $ 22,802 $ 11,909,436 % of Total Loans 0.26 % 0.14 % 0.40 % 99.41 % 0.19 % 100 % (1) There were no nonaccrual loans with an allowance as of December 31, 2022. (2) Includes commercial small business leases. (3) Residential accruing current balances excludes reverse mortgages, at fair value of $2.4 million. (4) Includes $21.1 million of delinquent, but still accruing, U.S. government-guaranteed student loans that carry little risk of credit loss. September 30, 2023 (Dollars in thousands) 30-89 Days Past Due and Still Accruing 90+ Days Past Due and Still Accruing Accruing Current Balances Nonaccrual Loans Total Commercial and industrial (1) $ 428 $ — $ 36,299 $ 11,343 $ 48,070 Owner-occupied commercial — — — 1,271 1,271 Commercial mortgages — — 9,427 — 9,427 Construction 8,285 — 909 — 9,194 Residential (2) — — 613 — 613 Consumer (2) 727 207 8,277 400 9,611 Total $ 9,440 $ 207 $ 55,525 $ 13,014 $ 78,186 (1) Includes commercial small business leases. (2) Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans. |
Schedule Of Collateral Dependent Loans | The following table presents the amortized cost basis of nonaccruing collateral-dependent loans by class at September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 (Dollars in thousands) Property Equipment and other Property Equipment and other Commercial and industrial (1) $ 21,650 $ 4,645 $ 3,848 $ 2,922 Owner-occupied commercial 15,147 — 386 — Commercial mortgages 6,706 — 5,159 — Construction 4,828 — 5,143 — Residential (2) 2,531 — 3,199 — Consumer (3) 1,953 — 2,145 — Total $ 52,815 $ 4,645 $ 19,880 $ 2,922 (1) Includes commercial small business leases. (2) Excludes reverse mortgages at fair value. (3) Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans. |
Schedule of Credit Quality Indicators | The following tables provide an analysis of loans by portfolio segment based on the credit quality indicators used to determine the allowance for credit losses as of September 30, 2023. Term Loans Amortized Cost Basis by Origination Year (1) 2023 2022 2021 2020 2019 Prior Revolving loans amortized cost basis Revolving loans converted to term Total (Dollars in thousands) Commercial and industrial (2) : Risk Rating Pass $ 830,232 $ 854,412 $ 321,269 $ 264,724 $ 119,282 $ 396,845 $ 8,710 $ 243,969 $ 3,039,443 Special mention 14,913 24,194 2,917 350 798 7 — 861 44,040 Substandard or Lower 53,341 34,854 5,908 11,086 24,982 19,568 — 16,515 166,254 $ 898,486 $ 913,460 $ 330,094 $ 276,160 $ 145,062 $ 416,420 $ 8,710 $ 261,345 $ 3,249,737 Current-period gross writeoffs $ 399 $ 5,410 $ 8,437 $ 1,398 $ 6,435 $ 8,417 $ — $ — $ 30,496 Owner-occupied commercial: Risk Rating Pass $ 289,740 $ 269,796 $ 268,593 $ 213,060 $ 206,999 $ 361,669 $ — $ 171,762 $ 1,781,619 Special mention 2,907 2,182 6,638 1,122 9,621 5,601 — 1,615 29,686 Substandard or Lower 8,936 18,540 9,523 11,588 2,831 42,725 — 18,723 112,866 $ 301,583 $ 290,518 $ 284,754 $ 225,770 $ 219,451 $ 409,995 $ — $ 192,100 $ 1,924,171 Current-period gross writeoffs $ — $ — $ — $ — $ 184 $ — $ — $ — $ 184 Commercial mortgages: Risk Rating Pass $ 682,033 $ 478,103 $ 521,669 $ 475,369 $ 494,904 $ 625,112 $ — $ 263,124 $ 3,540,314 Special mention 9,599 — 69 4,802 24,401 19,797 — 294 58,962 Substandard or Lower 9,913 2,584 1,343 11,041 1,249 4,846 — 15,471 46,447 $ 701,545 $ 480,687 $ 523,081 $ 491,212 $ 520,554 $ 649,755 $ — $ 278,889 $ 3,645,723 Current-period gross writeoffs $ — $ 83 $ — $ 217 $ — $ — $ — $ — $ 300 Construction: Risk Rating Pass $ 361,914 $ 387,776 $ 158,656 $ 20,879 $ 2,405 $ 9,241 $ — $ 41,362 $ 982,233 Special mention 14,239 14,338 10,691 — — — — — 39,268 Substandard or Lower 8,285 — 4,102 8,954 161 — — 565 22,067 $ 384,438 $ 402,114 $ 173,449 $ 29,833 $ 2,566 $ 9,241 $ — $ 41,927 $ 1,043,568 Current-period gross writeoffs $ — $ — $ — $ — $ — $ — $ — $ — $ — Residential (3) : Risk Rating Performing $ 152,336 $ 68,990 $ 104,664 $ 57,762 $ 34,205 $ 431,381 $ — $ — $ 849,338 Nonperforming — 170 589 489 1,259 3,495 — — 6,002 $ 152,336 $ 69,160 $ 105,253 $ 58,251 $ 35,464 $ 434,876 $ — $ — $ 855,340 Current-period gross writeoffs $ 33 $ — $ — $ — $ — $ — $ — $ — $ 33 Consumer (4) : Risk Rating Performing $ 251,967 $ 598,183 $ 164,642 $ 107,950 $ 47,046 $ 256,796 $ 523,391 $ 5,188 $ 1,955,163 Nonperforming — — — 199 41 — 1,367 312 1,919 $ 251,967 $ 598,183 $ 164,642 $ 108,149 $ 47,087 $ 256,796 $ 524,758 $ 5,500 $ 1,957,082 Current-period gross writeoffs $ 787 $ 10,716 $ 3,174 $ 235 $ 142 $ 320 $ — $ — $ 15,374 (1) Origination date represents the most recent underwriting of the loan which includes new relationships, renewals and extensions. (2) Includes commercial small business leases. (3) Excludes reverse mortgages at fair value. (4) Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans. The following tables provide an analysis of loans by portfolio segment based on the credit quality indicators used to determine the allowance for credit losses, as of December 31, 2022. Term Loans Amortized Cost Basis by Origination Year 2022 2021 2020 2019 2018 Prior Revolving loans amortized cost basis Revolving loans converted to term Total (Dollars in thousands) Commercial and industrial (1) : Risk Rating Pass $ 1,123,803 $ 501,761 $ 387,225 $ 211,310 $ 153,713 $ 276,588 $ 8,099 $ 250,486 $ 2,912,985 Special mention 28,672 27,689 7,585 9,451 347 1,010 — 2,596 77,350 Substandard or Lower 32,362 16,162 6,943 37,534 37,133 6,768 — 7,089 143,991 $ 1,184,837 $ 545,612 $ 401,753 $ 258,295 $ 191,193 $ 284,366 $ 8,099 $ 260,171 $ 3,134,326 Owner-occupied commercial: Risk Rating Pass $ 280,898 $ 325,388 $ 258,177 $ 226,717 $ 106,390 $ 363,420 $ — $ 132,942 $ 1,693,932 Special mention 17,376 — — — — 2,166 — 3,351 22,893 Substandard or Lower 2,981 1,500 23,284 4,401 11,864 35,311 — 13,416 92,757 $ 301,255 $ 326,888 $ 281,461 $ 231,118 $ 118,254 $ 400,897 $ — $ 149,709 $ 1,809,582 Commercial mortgages: Risk Rating Pass $ 516,783 $ 600,226 $ 526,312 $ 549,788 $ 276,414 $ 594,024 $ — $ 210,550 $ 3,274,097 Special mention 1,450 75 3,848 6,121 9,596 32,014 — — 53,104 Substandard or Lower 1,861 1,210 12,552 2,909 3,573 1,209 — 569 23,883 $ 520,094 $ 601,511 $ 542,712 $ 558,818 $ 289,583 $ 627,247 $ — $ 211,119 $ 3,351,084 Construction: Risk Rating Pass $ 448,581 $ 299,619 $ 115,667 $ 9,319 $ 26,553 $ 7,539 $ — $ 122,116 $ 1,029,394 Special mention — — — — — — — 581 581 Substandard or Lower — 4,200 8,930 183 — — — 761 14,074 $ 448,581 $ 303,819 $ 124,597 $ 9,502 $ 26,553 $ 7,539 $ — $ 123,458 $ 1,044,049 Residential (2) : Risk Rating Performing $ 64,500 $ 110,508 $ 60,625 $ 36,118 $ 45,859 $ 434,175 $ — $ — $ 751,785 Nonperforming — 729 502 999 1,218 4,232 — — 7,680 $ 64,500 $ 111,237 $ 61,127 $ 37,117 $ 47,077 $ 438,407 $ — $ — $ 759,465 Consumer (3) : Risk Rating Performing $ 595,158 $ 195,397 $ 126,456 $ 54,449 $ 220,039 $ 71,478 $ 540,308 $ 5,232 $ 1,808,517 Nonperforming — — 350 — 479 — 1,255 329 2,413 $ 595,158 $ 195,397 $ 126,806 $ 54,449 $ 220,518 $ 71,478 $ 541,563 $ 5,561 $ 1,810,930 (1) Includes commercial small business leases. (2) Excludes reverse mortgages at fair value. (3) Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans. |
Schedule of Loans Identified as Troubled Debt Restructurings During Periods Indicated | The following table shows the amortized cost basis at the end of the reporting period of troubled loans, disaggregated by portfolio segment and type of modification granted. September 30, 2023 (Dollars in thousands) Term Extension More-Than-Insignificant Payment Delay Combination- Term Extension and Payment Delay Combination- Term Extension and Interest Rate Reduction Combination - Payment Delay and Interest Rate Reduction Total % of Total Loan Category Commercial and industrial (1) $ 36,683 $ 1,193 $ 10,163 $ 31 $ — $ 48,070 1.48 % Owner-occupied commercial — — 1,062 209 — 1,271 0.07 % Commercial mortgages 9,427 — — — — 9,427 0.26 % Construction 9,194 — — — — 9,194 0.88 % Residential 563 50 — — — 613 0.07 % Consumer (2) 1,102 2,704 5,154 157 494 9,611 0.49 % Total $ 56,969 $ 3,947 $ 16,379 $ 397 $ 494 $ 78,186 0.62 % (1) Includes commercial small business leases. (2) Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans. The following table describes the financial effect of the modifications made to troubled loans as of September 30, 2023: Term Extension ( 1) Interest Rate Reduction (2) More-Than-Insignificant Payment Delay (3) Commercial and industrial 1.55 4.00% 0.09% Owner-occupied commercial 1.27 2.58 0.01 Commercial mortgages 1.33 — — Construction 0.27 — — Residential 20.18 — — Consumer 3.07 3.27 0.07 (1) Represents the weighted-average increase in the life of modified loans measured in years, which reduces monthly payment amounts for borrowers. (2) Represents the weighted-average decrease in the contractual interest rate on the modified loans. (3) Represents the percentage of loans deferred over the total loan portfolio excluding reverse mortgages at fair value. The following table shows the amortized cost of loans that received a term extension modification that had a payment default during the period and were modified in the 12 months before default to borrowers experiencing financial difficulty as of September 30, 2023. Term Extension More-Than-Insignificant Payment Delay Combination Term Extension & Payment Delay Total Commercial and industrial $ 707 $ — $ 10,163 $ 10,870 Owner-occupied commercial — — 1,062 1,062 Consumer — 101 — 101 Total $ 707 $ 101 $ 11,225 $ 12,033 The following table presents the balance of TDRs as of the indicated date: (Dollars in thousands) December 31, 2022 Performing TDRs $ 19,737 Nonperforming TDRs 2,006 Total TDRs $ 21,743 The following table presents information regarding the types of loan modifications made for the three and nine months ended September 30, 2022: Three months ended September 30, 2022 Nine months ended September 30, 2022 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 — — — 2 2 1 — — 2 3 Commercial mortgages — — — — — — 1 — — 1 Construction — — — — — — 1 — — 1 Residential — — — — — 1 — 1 — 2 Consumer 50 8 4 2 64 51 32 7 3 93 Total 50 8 4 4 66 53 34 8 5 100 (1) Other includes interest rate reduction, forbearance, and interest only payments. Three months ended September 30, 2022 Nine Months Ended September 30, 2022 (Dollars in thousands) Pre Modification Post Modification Pre Modification Post Modification Commercial $ 157 $ 157 $ 185 $ 185 Commercial mortgages 2,390 2,390 2,390 2,390 Construction 2,000 2,000 2,000 2,000 Residential — — 138 138 Consumer 948 948 1,409 1,409 Total (1)(2) $ 5,495 $ 5,495 $ 6,122 $ 6,122 (1) During the three and nine months ended September 30, 2022 the TDRs set forth in the table above resulted in a less than $0.1 million increase and a $0.3 million increase in the allowance for credit losses, respectively, and no additional charge-offs in either period. During the three and nine months ended September 30, 2022, no TDRs defaulted that had received troubled debt modification during the past twelve months. (2) The TDRs set forth in the table above did not occur as a result of the loan forbearance program under the CARES Act. |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Schedule of Lease Cost | The components of operating lease cost were as follows: Three months ended Nine months ended (Dollars in thousands) September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Operating lease cost (1) $ 3,077 $ 4,900 $ 12,593 $ 15,289 Sublease income (37) (51) (118) (222) Net lease cost $ 3,040 $ 4,849 $ 12,475 $ 15,067 (1) Includes variable lease cost and short-term lease cost. |
Schedule of Balance Sheet Information | Supplemental information related to operating leases was as follows: (Dollars in thousands) September 30, 2023 December 31, 2022 Right-of-use assets $ 127,020 $ 138,182 Lease liabilities $ 147,102 $ 158,269 Lease term and discount rate Weighted average remaining lease term (in years) 12.82 17.91 Weighted average discount rate 5.18 % 4.25 % |
Schedule of Lease Maturities | Maturities of operating lease liabilities were as follows: (Dollars in thousands) September 30, 2023 Remaining in 2023 $ 4,652 2024 17,259 2025 17,014 2026 16,176 2027 14,865 After 2027 135,220 Total lease payments 205,186 Less: Interest (58,084) Present value of lease liabilities $ 147,102 |
Schedule of Supplemental Cash Flow Information | Supplemental cash flow information related to operating leases was as follows: Three months ended Nine months ended (Dollars in thousands) September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,041 $ 5,196 $ 14,235 $ 15,911 Right of use assets obtained in exchange for new operating lease liabilities (non-cash) — — — 13,707 |
Schedule of Direct Financing Leases | The components of direct finance lease income are summarized in the table below: Three months ended Nine months ended (Dollars in thousands) September 30, 2023 September 30, 2022 September 30, 2023 September 30, 2022 Direct financing leases: Interest income on lease receivable $ 13,682 $ 10,822 $ 39,200 $ 30,885 Interest income on deferred fees and costs, net (1,643) (925) (4,479) (2,422) Total direct financing lease net interest income $ 12,039 $ 9,897 $ 34,721 $ 28,463 Equipment leasing receivables relate to direct financing leases. The composition of the net investment in direct financing leases was as follows: (Dollars in thousands) September 30, 2023 December 31, 2022 Lease receivables $ 698,729 $ 642,369 Unearned income (108,629) (95,683) Deferred fees and costs 15,598 12,295 Net investment in direct financing leases $ 605,698 $ 558,981 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Allocation of Goodwill to Our Reportable Operating Segments for Purposes of Goodwill Impairment Testing | The following table shows the allocation of goodwill to the reportable operating segments for purposes of goodwill impairment testing: (Dollars in thousands) WSFS Cash Connect ® Wealth Consolidated December 31, 2022 $ 753,586 $ — $ 130,051 $ 883,637 Goodwill from business combinations (1) — — 2,261 2,261 September 30, 2023 $ 753,586 $ — $ 132,312 $ 885,898 (1) During the third quarter of 2023, BMCM acquired the business of a registered investment advisory firm. |
Schedule of Finite-Lived Intangible Assets | The following table summarizes the Company's intangible assets: (Dollars in thousands) Gross Accumulated Net Amortization Period September 30, 2023 Core deposits $ 104,751 $ (48,180) $ 56,571 10 years Customer relationships 73,880 (16,795) 57,085 7-15 years Loan servicing rights (1) 12,201 (6,183) 6,018 10-25 years Tradename 2,900 — 2,900 indefinite Total intangible assets $ 193,732 $ (71,158) $ 122,574 December 31, 2022 Core deposits $ 104,751 $ (40,443) $ 64,308 10 years Customer relationships 68,281 (12,937) 55,344 7-15 years Loan servicing rights (2) 11,118 (5,075) 6,043 10-25 years Tradename 2,900 — 2,900 indefinite Non-compete agreements 200 (200) — 1 year Total intangible assets $ 187,250 $ (58,655) $ 128,595 (1) Includes a reversal of impairment losses of $0.2 million and less than $0.1 million for the three and nine months ended September 30, 2023, respectively. (2) Includes impairment losses of $0.3 million for the year ended December 31, 2022. |
Schedule of Indefinite-Lived Intangible Assets | The following table summarizes the Company's intangible assets: (Dollars in thousands) Gross Accumulated Net Amortization Period September 30, 2023 Core deposits $ 104,751 $ (48,180) $ 56,571 10 years Customer relationships 73,880 (16,795) 57,085 7-15 years Loan servicing rights (1) 12,201 (6,183) 6,018 10-25 years Tradename 2,900 — 2,900 indefinite Total intangible assets $ 193,732 $ (71,158) $ 122,574 December 31, 2022 Core deposits $ 104,751 $ (40,443) $ 64,308 10 years Customer relationships 68,281 (12,937) 55,344 7-15 years Loan servicing rights (2) 11,118 (5,075) 6,043 10-25 years Tradename 2,900 — 2,900 indefinite Non-compete agreements 200 (200) — 1 year Total intangible assets $ 187,250 $ (58,655) $ 128,595 (1) Includes a reversal of impairment losses of $0.2 million and less than $0.1 million for the three and nine months ended September 30, 2023, respectively. (2) Includes impairment losses of $0.3 million for the year ended December 31, 2022. |
Schedule of Estimated Amortization Expense of Intangibles | The following table presents the estimated future amortization expense on definite life intangible assets: (Dollars in thousands) September 30, 2023 Remaining in 2023 $ 4,239 2024 16,793 2025 16,451 2026 15,775 2027 15,337 Thereafter 51,079 Total $ 119,674 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Deposits Liabilities, Balance Sheet, Reported Amounts [Abstract] | |
Schedule of Deposits By Category | The following table shows deposits by category: (Dollars in thousands) September 30, 2023 December 31, 2022 Noninterest-bearing: Noninterest demand $ 4,913,517 $ 5,739,647 Total noninterest-bearing $ 4,913,517 $ 5,739,647 Interest-bearing: Interest-bearing demand $ 3,027,780 $ 3,346,682 Savings 1,680,864 2,161,858 Money market 4,559,643 3,730,778 Customer time deposits 1,715,460 1,102,013 Brokered deposits 89,105 122,591 Total interest-bearing 11,072,852 10,463,922 Total deposits $ 15,986,369 $ 16,203,569 |
FAIR VALUE DISCLOSURES OF FIN_2
FAIR VALUE DISCLOSURES OF FINANCIAL ASSETS AND LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Instruments Carried at Fair Value | The following tables present financial instruments carried at fair value as of September 30, 2023 and December 31, 2022 by level in the valuation hierarchy (as described above): September 30, 2023 (Dollars in thousands) Quoted Significant Significant Total Fair Assets measured at fair value on a recurring basis: Available-for-sale securities: CMO $ — $ 454,664 $ — $ 454,664 FNMA MBS — 2,913,412 — 2,913,412 FHLMC MBS — 110,719 — 110,719 GNMA MBS — 42,751 — 42,751 GSE agency notes — 169,995 — 169,995 Other assets — 203,083 23 203,106 Total assets measured at fair value on a recurring basis $ — $ 3,894,624 $ 23 $ 3,894,647 Liabilities measured at fair value on a recurring basis: Other liabilities $ — $ 196,821 $ 14,482 $ 211,303 Assets measured at fair value on a nonrecurring basis: Other investments $ — $ — $ 21,741 $ 21,741 Other real estate owned — — 298 298 Loans held for sale — 36,658 — 36,658 Total assets measured at fair value on a nonrecurring basis $ — $ 36,658 $ 22,039 $ 58,697 December 31, 2022 (Dollars in thousands) Quoted Significant Significant Total Fair Assets measured at fair value on a recurring basis: Available-for-sale securities: CMO $ — $ 506,380 $ — $ 506,380 FNMA MBS — 3,250,258 — 3,250,258 FHLMC MBS — 121,999 — 121,999 GNMA MBS — 36,138 — 36,138 GSE agency notes — 178,285 — 178,285 Other assets — 156,912 81 156,993 Total assets measured at fair value on a recurring basis $ — $ 4,249,972 $ 81 $ 4,250,053 Liabilities measured at fair value on a recurring basis: Other liabilities $ — $ 156,520 $ 17,102 $ 173,622 Assets measured at fair value on a nonrecurring basis Other investments $ — $ — $ 26,120 $ 26,120 Other real estate owned — — 833 833 Loans held for sale — 42,985 — 42,985 Total assets measured at fair value on a nonrecurring basis $ — $ 42,985 $ 26,953 $ 69,938 |
Schedule of Fair Value Measurement Inputs and Valuation Techniques | The following tables provide a description of the valuation techniques and significant unobservable inputs for the Company's financial instruments classified as Level 3 as of September 30, 2023 and December 31, 2022: (Dollars in thousands) September 30, 2023 Financial Instrument Fair Value Valuation Technique(s) Unobservable Input Range Other investments $ 21,741 Observed market comparable transactions Period of observed transactions May 2022 Other real estate owned 298 Fair market value of collateral Costs to sell 10.0% Other assets (Risk participation agreements purchased) 23 Credit Value Adjustment CDS Spread and Loss Given Default (LGD) CDS spread: 110 - 360 bps (196 bps) LGD: –% - 30% (30%) Other liabilities (Risk participation agreements sold) 1 Credit Value Adjustment CDS Spread and Loss Given Default (LGD) CDS spread: 1 - 250 bps (78 bps) LGD: 30% Other liabilities (Financial derivative related to 14,481 Discounted cash flow Timing of Visa litigation resolution 1.00 - 5.00 years (3.20 years or 4Q 2025) (Dollars in thousands) December 31, 2022 Financial Instrument Fair Value Valuation Technique(s) Unobservable Input Range Other investments $ 26,120 Observed market comparable transactions Period of observed transactions May 2022 Other real estate owned 833 Fair market value of collateral Costs to sell 10.0% Other assets (Risk participation agreements purchased) 81 Credit Value Adjustment CDS Spread and Loss Given Default (LGD) CDS spread: 110 - 250 bps (205 bps) LGD: –% - 30% (30%) Other liabilities (Risk participation agreements sold) 2 Credit Value Adjustment CDS Spread and Loss Given Default (LGD) CDS spread: 1 - 250 bps (158 bps) LGD: 30% Other liabilities (Financial derivative related to 17,100 Discounted cash flow Timing of Visa litigation resolution 1.00 - 5.75 years (3.61 years or 4Q 2025) |
Schedule of Book Value and Estimated Fair Value of Financial Instruments | The book value and estimated fair value of the Company's financial instruments are as follows: September 30, 2023 December 31, 2022 (Dollars in thousands) Fair Value Book Value Fair Value Book Value Fair Value Financial assets: Cash, cash equivalents, and restricted cash Level 1 $ 611,480 $ 611,480 $ 837,258 $ 837,258 Investment securities available-for-sale Level 2 3,691,541 3,691,541 4,093,060 4,093,060 Investment securities held-to-maturity, net Level 2 1,068,871 927,680 1,111,619 1,040,104 Other investments Level 3 21,741 21,741 26,120 26,120 Loans, held for sale Level 2 36,658 36,658 42,985 42,985 Loans and leases, net (1) Level 3 12,502,404 12,454,772 11,759,992 11,567,888 Stock in FHLB of Pittsburgh Level 2 12,199 12,199 24,116 24,116 Accrued interest receivable Level 2 81,909 81,909 74,448 74,448 Other assets Levels 2, 3 203,106 203,106 156,993 156,993 Financial liabilities: Deposits Level 2 $ 15,986,369 $ 15,951,775 $ 16,203,569 $ 16,156,124 Borrowed funds Level 2 917,833 917,053 726,894 709,014 Standby letters of credit Level 3 663 663 739 739 Accrued interest payable Level 2 42,481 42,481 5,174 5,174 Other liabilities Levels 2, 3 211,303 211,303 173,622 173,622 (1) Includes reverse mortgage loans. |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Values of Derivative Instruments | The table below presents the fair value of derivative financial instruments as well as their location on the unaudited Consolidated Statements of Financial Condition as of September 30, 2023. Fair Values of Derivative Instruments (Dollars in thousands) Count Notional Balance Sheet Location Derivatives Derivatives designated as hedging instruments: Interest rate products 6 $ 500,000 Other assets $ 5,508 Total $ 500,000 $ 5,508 Derivatives not designated as hedging instruments: Interest rate products $ 2,226,251 Other assets $ 196,508 Interest rate products 2,226,251 Other liabilities (196,508) Interest rate lock commitments with customers 32,747 Other assets 498 Interest rate lock commitments with customers 3,886 Other liabilities (20) Forward sale commitments 21,500 Other assets 203 Forward sale commitments 13,907 Other liabilities (32) FX forwards 16,687 Other assets 366 FX forwards 14,793 Other liabilities (261) Risk participation agreements sold 97,049 Other liabilities (1) Risk participation agreements purchased 115,520 Other assets 23 Financial derivatives related to 113,177 Other liabilities (14,481) Total derivatives $ 5,381,768 $ (8,197) The table below presents the fair value of derivative financial instruments as well as their location on the unaudited Consolidated Statements of Financial Condition as of December 31, 2022. Fair Values of Derivative Instruments (Dollars in thousands) Notional Balance Sheet Location Derivatives Derivatives not designated as hedging instruments: Interest rate products $ 1,794,678 Other assets $ 156,414 Interest rate products 1,794,678 Other liabilities (156,414) Interest rate lock commitments with customers 24,673 Other assets 385 Interest rate lock commitments with customers 1,179 Other liabilities (7) Forward sale commitments 9,072 Other assets 75 Forward sale commitments 20,719 Other liabilities (54) FX forwards 4,177 Other assets 38 FX forwards 3,052 Other liabilities (45) Risk participation agreements sold 68,459 Other liabilities (2) Risk participation agreements purchased 87,168 Other assets 81 Financial derivatives related to 113,177 Other liabilities (17,100) Total derivatives $ 3,921,032 $ (16,629) |
Schedule of 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 nine months ended September 30, 2023 and September 30, 2022. Amount of (Loss) Gain Recognized in OCI on Derivative (Effective Portion) Amount of (Loss) Gain Recognized in OCI on Derivative (Effective Portion) Location of Gain Reclassified from Accumulated OCI into Income (Effective Portion) (Dollars in thousands) Three Months Ended September 30, Nine Months Ended September 30, Derivatives in Cash Flow Hedging Relationships 2023 2022 2023 2022 Interest rate products $ (1,608) $ — $ (2,752) $ — Interest income Total $ (1,608) $ — $ (2,752) $ — Amount of Gain (Loss) Recognized in Income Amount of Gain (Loss) Recognized in Income Location of Gain (Loss) Recognized in Income (Dollars in thousands) Three Months Ended September 30, Nine Months Ended September 30, Derivatives not designated as hedging instruments 2023 2022 2023 2022 Interest rate products $ 3,427 $ 674 $ 7,397 $ 5,599 Other income Interest rate lock commitments with customers (171) (1,032) 116 (1,856) Mortgage banking activities, net Forward sale commitments 595 1,097 660 $ 5,120 Mortgage banking activities, net FX forwards 97 54 126 95 Other income Risk participation agreements (317) (1) (330) (191) Other income Total $ 3,631 $ 792 $ 7,969 $ 8,767 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | The following tables show segment results for the three and nine months ended September 30, 2023 and 2022: Three Months Ended September 30, 2023 Three Months Ended September 30, 2022 (Dollars in thousands) WSFS Bank Cash Connect ® Wealth Total WSFS Bank Cash Connect ® Wealth Total Statements of Income External customer revenues: Interest income $ 245,520 $ — $ 5,619 $ 251,139 $ 183,107 $ — $ 3,458 $ 186,565 Noninterest income 18,371 21,231 33,066 72,668 17,585 15,416 29,650 62,651 Total external customer revenues 263,891 21,231 38,685 323,807 200,692 15,416 33,108 249,216 Inter-segment revenues: Interest income 7,213 340 27,011 34,564 4,570 416 13,658 18,644 Noninterest income 7,384 499 190 8,073 6,906 431 222 7,559 Total inter-segment revenues 14,597 839 27,201 42,637 11,476 847 13,880 26,203 Total revenue 278,488 22,070 65,886 366,444 212,168 16,263 46,988 275,419 External customer expenses: Interest expense 60,133 — 8,404 68,537 8,923 — 811 9,734 Noninterest expenses 105,655 15,524 18,510 139,689 104,817 9,646 18,454 132,917 Provision for (recovery of) credit losses 18,544 — (130) 18,414 7,463 — (9) 7,454 Total external customer expenses 184,332 15,524 26,784 226,640 121,203 9,646 19,256 150,105 Inter-segment expenses: Interest expense 27,351 4,068 3,145 34,564 14,074 3,414 1,156 18,644 Noninterest expenses 689 1,391 5,993 8,073 653 1,185 5,721 7,559 Total inter-segment expenses 28,040 5,459 9,138 42,637 14,727 4,599 6,877 26,203 Total expenses 212,372 20,983 35,922 269,277 135,930 14,245 26,133 176,308 Income before taxes $ 66,116 $ 1,087 $ 29,964 $ 97,167 $ 76,238 $ 2,018 $ 20,855 $ 99,111 Income tax provision 22,904 25,767 Consolidated net income 74,263 73,344 Net income (loss) attributable to noncontrolling interest 97 (38) Net income attributable to WSFS $ 74,166 $ 73,382 Supplemental Information Capital expenditures for the period ended $ 1,131 $ — $ 10 $ 1,141 $ 3,213 $ 16 $ — $ 3,229 Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022 (Dollars in thousands) WSFS Bank Cash Connect ® Wealth Total WSFS Bank Cash Connect ® Wealth Total Statements of Income External customer revenues: Interest income $ 703,210 $ — $ 16,081 $ 719,291 $ 481,683 $ — $ 9,039 $ 490,722 Noninterest income 46,610 59,402 96,654 202,666 63,833 37,500 93,921 195,254 Total external customer revenues 749,820 59,402 112,735 921,957 545,516 37,500 102,960 685,976 Inter-segment revenues: Interest income 20,037 1,058 72,686 93,781 7,720 1,148 27,865 36,733 Noninterest income 21,545 1,455 389 23,389 20,103 1,220 569 21,892 Total inter-segment revenues 41,582 2,513 73,075 117,170 27,823 2,368 28,434 58,625 Total revenue 791,402 61,915 185,810 1,039,127 573,339 39,868 131,394 744,601 External customer expenses: Interest expense 152,582 — 19,733 172,315 20,475 — 1,243 21,718 Noninterest expenses 314,751 43,562 55,674 413,987 361,949 25,383 54,091 441,423 Provision for credit losses 62,589 — 666 63,255 34,647 — 46 34,693 Total external customer expenses 529,922 43,562 76,073 649,557 417,071 25,383 55,380 497,834 Inter-segment expenses: Interest expense 73,744 11,478 8,559 93,781 29,013 4,896 2,824 36,733 Noninterest expenses 1,844 4,221 17,324 23,389 1,789 3,436 16,667 21,892 Total inter-segment expenses 75,588 15,699 25,883 117,170 30,802 8,332 19,491 58,625 Total expenses 605,510 59,261 101,956 766,727 447,873 33,715 74,871 556,459 Income before taxes $ 185,892 $ 2,654 $ 83,854 $ 272,400 $ 125,466 $ 6,153 $ 56,523 $ 188,142 Income tax provision 66,880 49,929 Consolidated net income 205,520 138,213 Net income attributable to noncontrolling interest 272 287 Net income attributable to WSFS $ 205,248 $ 137,926 Supplemental Information Capital expenditures for the period ended $ 2,943 $ — $ 10 $ 2,953 $ 7,649 $ 16 $ — $ 7,665 The following table shows significant components of segment net assets as of September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 (Dollars in thousands) WSFS Bank Cash Connect ® Wealth Total WSFS Bank Cash Connect ® Wealth Total Statements of Financial Condition Cash and cash equivalents $ 241,531 $ 327,417 $ 42,532 $ 611,480 $ 317,022 $ 476,850 $ 43,386 $ 837,258 Goodwill 753,586 — 132,312 885,898 753,586 — 130,051 883,637 Other segment assets 18,132,659 11,662 399,293 18,543,614 17,824,946 10,429 358,485 18,193,860 Total segment assets $ 19,127,776 $ 339,079 $ 574,137 $ 20,040,992 $ 18,895,554 $ 487,279 $ 531,922 $ 19,914,755 |
CHANGE IN ACCUMULATED OTHER C_2
CHANGE IN ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Schedule of Components of Accumulated Other Comprehensive Loss | Changes to accumulated other comprehensive loss by component are shown, net of taxes, in the following tables for the period indicated: (Dollars in thousands) Net change in Net change Net Net change in fair value of derivatives used for cash flow hedges (1) Net change in equity method investments Total Balance, June 30, 2023 $ (550,890) $ (99,945) $ (4,571) $ (1,115) $ 462 $ (656,059) Other comprehensive (loss) income (127,523) — (3) (1,608) 192 (128,942) Less: Amounts reclassified from accumulated other comprehensive loss — 4,366 (48) (28) — 4,290 Net current-period other comprehensive (loss) income (127,523) 4,366 (51) (1,636) 192 (124,652) Balance, September 30, 2023 $ (678,413) $ (95,579) $ (4,622) $ (2,751) $ 654 $ (780,711) Balance, June 30, 2022 $ (395,213) $ (119,649) $ (4,746) $ 189 $ 541 $ (518,878) Other comprehensive (loss) income (202,520) (1) (4) — 25 (202,500) Less: Amounts reclassified from accumulated other comprehensive loss — 5,967 (27) (41) — 5,899 Net current-period other comprehensive (loss) income (202,520) 5,966 (31) (41) 25 (196,601) Balance, September 30, 2022 $ (597,733) $ (113,683) $ (4,777) $ 148 $ 566 $ (715,479) (1) Includes amortization of net gain for cash flow hedges terminated as of April 1, 2020. (Dollars in thousands) Net change in Net change Net Net change in fair value of derivatives used for cash flow hedges (1) Net change in equity method investments Total Balance, December 31, 2022 $ (563,533) $ (108,503) $ (4,482) $ 108 $ 566 $ (675,844) Other comprehensive (loss) income (114,880) — 2 (2,752) 88 (117,542) Less: Amounts reclassified from accumulated other comprehensive loss — 12,924 (142) (107) — 12,675 Net current-period other comprehensive (loss) income (114,880) 12,924 (140) (2,859) 88 (104,867) Balance, September 30, 2023 $ (678,413) $ (95,579) $ (4,622) $ (2,751) $ 654 $ (780,711) Balance, December 31, 2021 $ (33,873) $ 175 $ (4,691) $ 268 $ 353 $ (37,768) Other comprehensive (loss) income (2) (563,860) (119,769) (4) — 213 (683,420) Less: Amounts reclassified from accumulated other comprehensive loss — 5,911 (82) (120) — 5,709 Net current-period other comprehensive (loss) income (563,860) (113,858) (86) (120) 213 (677,711) Balance, September 30, 2022 $ (597,733) $ (113,683) $ (4,777) $ 148 $ 566 $ (715,479) (1) Includes amortization of net gain for cash flow hedges terminated as of April 1, 2020. (2) Includes $119.8 million, net of tax, of unrealized losses on transferred investment securities from available-for-sale to held-to-maturity. |
Schedule of Components of Other Comprehensive Loss | The unaudited Consolidated Statements of Income were impacted by components of other comprehensive loss as shown in the tables below: Three Months Ended September 30, Affected line item in unaudited Consolidated Statements of Income (Dollars in thousands) 2023 2022 Net unrealized holding losses on securities transferred between available-for-sale and held-to-maturity: Amortization of net unrealized losses to income during the period 5,745 7,851 Net interest income Income taxes (1,379) (1,884) Income tax provision Net of tax 4,366 5,967 Amortization of defined benefit pension plan-related items: Prior service credits (19) (19) Actuarial gains (44) (17) Total before tax (63) (36) Salaries, benefits and other compensation Income taxes 15 9 Income tax provision Net of tax (48) (27) Net unrealized gains on terminated cash flow hedges: Amortization of net unrealized gains to income during the period (37) (54) Interest and fees on loans and leases Income taxes 9 13 Income tax provision Net of tax (28) (41) Total reclassifications $ 4,290 $ 5,899 Nine Months Ended September 30, Affected line item in unaudited Consolidated Statements of Operations 2023 2022 Net unrealized holding losses on securities transferred between available-for-sale and held-to-maturity: Amortization of net unrealized losses to income during the period 17,005 7,777 Net interest income Income taxes (4,081) (1,866) Income tax provision Net of tax 12,924 5,911 Amortization of defined benefit pension plan-related items: Prior service credits (57) (57) Actuarial gains (130) (51) Total before tax (187) (108) Salaries, benefits and other compensation Income taxes 45 26 Income tax provision Net of tax (142) (82) Net unrealized gains on terminated cash flow hedges: Amortization of net unrealized gains to income during the period (141) (158) Interest and fees on loans and leases Income taxes 34 38 Income tax provision Net of tax (107) (120) Total reclassifications $ 12,675 $ 5,709 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) | Sep. 30, 2023 subsidiary office |
Basis Of Presentation [Line Items] | |
Number of unconsolidated subsidiary | subsidiary | 3 |
Number of majority-owned subsidiary | subsidiary | 1 |
Number of banking offices | 116 |
Pennsylvania | |
Basis Of Presentation [Line Items] | |
Number of banking offices | 59 |
Delaware | |
Basis Of Presentation [Line Items] | |
Number of banking offices | 40 |
New Jersey | |
Basis Of Presentation [Line Items] | |
Number of banking offices | 14 |
Virginia | |
Basis Of Presentation [Line Items] | |
Number of banking offices | 1 |
Nevada | |
Basis Of Presentation [Line Items] | |
Number of banking offices | 1 |
FLORIDA | |
Basis Of Presentation [Line Items] | |
Number of banking offices | 1 |
WSFS Financial Corporation | |
Basis Of Presentation [Line Items] | |
Number of wholly-owned subsidiaries | subsidiary | 2 |
NONINTEREST INCOME - Schedule o
NONINTEREST INCOME - Schedule of Credit/Debit Card and ATM Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Total credit/debit card and ATM income | ||||
Revenue from External Customer [Line Items] | ||||
Noninterest income | $ 14,869 | $ 10,993 | $ 42,660 | $ 27,446 |
Bailment fees | ||||
Revenue from External Customer [Line Items] | ||||
Noninterest income | 9,982 | 6,306 | 28,051 | 13,105 |
Interchange fees | ||||
Revenue from External Customer [Line Items] | ||||
Noninterest income | 3,885 | 3,870 | 11,764 | 11,859 |
Other card and ATM fees | ||||
Revenue from External Customer [Line Items] | ||||
Noninterest income | $ 1,002 | $ 817 | $ 2,845 | $ 2,482 |
NONINTEREST INCOME - Schedule_2
NONINTEREST INCOME - Schedule of Investment Management and Fiduciary Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Investment management and fiduciary income | ||||
Revenue from External Customer [Line Items] | ||||
Noninterest income | $ 32,720 | $ 29,504 | $ 95,575 | $ 90,877 |
Trust fees | ||||
Revenue from External Customer [Line Items] | ||||
Noninterest income | 22,062 | 19,170 | 64,514 | 58,658 |
Wealth management and advisory fees | ||||
Revenue from External Customer [Line Items] | ||||
Noninterest income | $ 10,658 | $ 10,334 | $ 31,061 | $ 32,219 |
NONINTEREST INCOME - Schedule_3
NONINTEREST INCOME - Schedule of Deposit Service Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Deposit service charges | ||||
Revenue from External Customer [Line Items] | ||||
Deposit service charges | $ 6,534 | $ 6,262 | $ 18,850 | $ 18,158 |
Service fees | ||||
Revenue from External Customer [Line Items] | ||||
Deposit service charges | 4,382 | 3,933 | 12,833 | 11,789 |
Return and overdraft fees | ||||
Revenue from External Customer [Line Items] | ||||
Deposit service charges | 1,851 | 2,164 | 5,218 | 5,835 |
Other deposit service fees | ||||
Revenue from External Customer [Line Items] | ||||
Deposit service charges | $ 301 | $ 165 | $ 799 | $ 534 |
NONINTEREST INCOME - Schedule_4
NONINTEREST INCOME - Schedule of Other Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Total other income | ||||
Revenue from External Customer [Line Items] | ||||
Noninterest income | $ 13,978 | $ 12,852 | $ 33,760 | $ 41,125 |
Managed service fees | ||||
Revenue from External Customer [Line Items] | ||||
Noninterest income | 5,301 | 4,866 | 15,316 | 13,091 |
Currency preparation | ||||
Revenue from External Customer [Line Items] | ||||
Noninterest income | 1,331 | 1,104 | 3,955 | 2,904 |
ATM loss protection | ||||
Revenue from External Customer [Line Items] | ||||
Noninterest income | 643 | 681 | 1,938 | 1,963 |
Capital markets revenue | ||||
Revenue from External Customer [Line Items] | ||||
Noninterest income | 3,581 | 793 | 8,170 | 5,738 |
Miscellaneous products and services | ||||
Revenue from External Customer [Line Items] | ||||
Noninterest income | $ 3,122 | $ 5,408 | $ 4,381 | $ 17,429 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Numerator: | ||||
Net income attributable to WSFS | $ 74,166 | $ 73,382 | $ 205,248 | $ 137,926 |
Net income attributable to WSFS | $ 74,166 | $ 73,382 | $ 205,248 | $ 137,926 |
Denominator: | ||||
Weighted average basic shares (in shares) | 60,941,922 | 63,047,675 | 61,264,862 | 64,064,488 |
Dilutive potential common shares (in shares) | 97,000 | 180,000 | 103,000 | 219,000 |
Weighted average fully diluted shares (in shares) | 61,039,317 | 63,227,983 | 61,367,802 | 64,282,992 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 1.22 | $ 1.16 | $ 3.35 | $ 2.15 |
Diluted (in dollars per share) | $ 1.22 | $ 1.16 | $ 3.34 | $ 2.15 |
Outstanding common stock equivalents having no dilutive effect (in shares) | 18,000 | 2,000 | 18,000 | 7,000 |
INVESTMENT SECURITIES - Narrati
INVESTMENT SECURITIES - Narrative (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 USD ($) security | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) security | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Schedule of Investments [Line Items] | |||||
Trading securities | $ 0 | $ 0 | |||
Number of available for sale investment securities | security | 964 | 964 | |||
Number of available-for-sale securities unrealized loss position | security | 964 | 964 | |||
Weighted average duration of MBS portfolio | 6 years | ||||
Securities pledged as collateral | $ 3,300,000,000 | $ 3,300,000,000 | $ 2,800,000,000 | ||
Sale of investment securities available-for-sale | 0 | $ 0 | |||
Unamortized premiums | 59,200,000 | 59,200,000 | 66,600,000 | ||
Unaccreted discounts | 21,900,000 | 21,900,000 | 25,200,000 | ||
Allowance for credit losses | 0 | 0 | 0 | ||
Held-to-maturity debt securities with an amortized cost basis | 1,100,000,000 | 1,100,000,000 | 1,100,000,000 | ||
Accrued interest | 1,700,000 | 1,700,000 | 2,400,000 | ||
Debt securities nonaccrual | 0 | 0 | 0 | ||
Past due held-to-maturity debt securities | 1,068,879,000 | 1,068,879,000 | 1,111,629,000 | ||
Fair value | 21,700,000 | 21,700,000 | 26,100,000 | ||
Gain (loss) on sale of equity investments | 700,000 | (1,000,000) | 6,000,000 | ||
Other Income | |||||
Schedule of Investments [Line Items] | |||||
Gain (loss) on sale of equity investments | $ 2,900,000 | $ 4,500,000 | |||
Past Due | |||||
Schedule of Investments [Line Items] | |||||
Past due held-to-maturity debt securities | 0 | 0 | 0 | ||
Fannie Mae (FNMA) mortgage-backed securities (MBS) | |||||
Schedule of Investments [Line Items] | |||||
Allowance for credit losses | 0 | 0 | 0 | ||
Past due held-to-maturity debt securities | $ 881,844,000 | $ 881,844,000 | $ 909,498,000 |
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 ($) | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Available-for-Sale Debt Securities | ||||||
Amortized Cost | $ 4,584,190,000 | $ 4,834,550,000 | ||||
Gross Unrealized Gain | 0 | 0 | ||||
Gross Unrealized Loss | 892,649,000 | 741,490,000 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Fair Value | 3,691,541,000 | 4,093,060,000 | ||||
Held-to-Maturity Debt Securities | ||||||
Amortized Cost | 1,068,879,000 | 1,111,629,000 | ||||
Gross Unrealized Gain | 24,000 | 534,000 | ||||
Gross Unrealized Loss | 141,215,000 | 72,049,000 | ||||
Allowance for Credit Losses | 8,000 | 10,000 | ||||
Fair Value | 927,680,000 | 1,040,104,000 | ||||
Available for sale securities transfers to held to maturity unrealized losses | (125,800,000) | |||||
Collateralized mortgage obligation (CMO) | ||||||
Available-for-Sale Debt Securities | ||||||
Amortized Cost | 573,393,000 | 608,834,000 | ||||
Gross Unrealized Gain | 0 | 0 | ||||
Gross Unrealized Loss | 118,729,000 | 102,454,000 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Fair Value | 454,664,000 | 506,380,000 | ||||
Fannie Mae (FNMA) mortgage-backed securities (MBS) | ||||||
Available-for-Sale Debt Securities | ||||||
Amortized Cost | 3,608,095,000 | 3,823,036,000 | ||||
Gross Unrealized Gain | 0 | 0 | ||||
Gross Unrealized Loss | 694,683,000 | 572,778,000 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Fair Value | 2,913,412,000 | 3,250,258,000 | ||||
Held-to-Maturity Debt Securities | ||||||
Amortized Cost | 881,844,000 | 909,498,000 | ||||
Gross Unrealized Gain | 0 | 0 | ||||
Gross Unrealized Loss | 129,388,000 | 68,677,000 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Fair Value | 752,456,000 | 840,821,000 | ||||
Freddie Mac (FHLMC) MBS | ||||||
Available-for-Sale Debt Securities | ||||||
Amortized Cost | 128,999,000 | 135,554,000 | ||||
Gross Unrealized Gain | 0 | 0 | ||||
Gross Unrealized Loss | 18,280,000 | 13,555,000 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Fair Value | 110,719,000 | 121,999,000 | ||||
Ginnie Mae (GNMA) MBS | ||||||
Available-for-Sale Debt Securities | ||||||
Amortized Cost | 47,621,000 | 39,116,000 | ||||
Gross Unrealized Gain | 0 | 0 | ||||
Gross Unrealized Loss | 4,870,000 | 2,978,000 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Fair Value | 42,751,000 | 36,138,000 | ||||
Government-sponsored enterprises (GSE) agency notes | ||||||
Available-for-Sale Debt Securities | ||||||
Amortized Cost | 226,082,000 | 228,010,000 | ||||
Gross Unrealized Gain | 0 | 0 | ||||
Gross Unrealized Loss | 56,087,000 | 49,725,000 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Fair Value | 169,995,000 | 178,285,000 | ||||
State and political subdivisions | ||||||
Held-to-Maturity Debt Securities | ||||||
Amortized Cost | 187,035,000 | 201,631,000 | ||||
Gross Unrealized Gain | 24,000 | 532,000 | ||||
Gross Unrealized Loss | 11,827,000 | 3,372,000 | ||||
Allowance for Credit Losses | 8,000 | $ 8,000 | 10,000 | $ 10,000 | $ 6,000 | $ 4,000 |
Fair Value | $ 175,224,000 | 198,781,000 | ||||
Available for sale securities transfers to held to maturity unrealized losses | (142,800,000) | |||||
Foreign bonds | ||||||
Held-to-Maturity Debt Securities | ||||||
Amortized Cost | 500,000 | |||||
Gross Unrealized Gain | 2,000 | |||||
Gross Unrealized Loss | 0 | |||||
Allowance for Credit Losses | 0 | |||||
Fair Value | $ 502,000 |
INVESTMENT SECURITIES - Sched_2
INVESTMENT SECURITIES - Schedule of Maturities of Investment Securities Available-for-Sale and Held-to-Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Available for Sale, Amortized Cost | ||
Within one year | $ 0 | $ 0 |
After one year but within five years | 87,314 | 83,014 |
After five years but within ten years | 577,578 | 465,777 |
After ten years | 3,919,298 | 4,285,759 |
Amortized Cost | 4,584,190 | 4,834,550 |
Available for Sale, Fair Value | ||
Within one year | 0 | 0 |
After one year but within five years | 81,548 | 77,499 |
After five years but within ten years | 465,454 | 398,607 |
After ten years | 3,144,539 | 3,616,954 |
Available-for-sale, fair value total | 3,691,541 | 4,093,060 |
Held to Maturity, Amortized Cost | ||
Within one year | 0 | 731 |
After one year but within five years | 9,793 | 9,530 |
After five years but within ten years | 45,306 | 46,170 |
After ten years | 1,013,780 | 1,055,198 |
Investment securities held-to-maturity, net | 1,068,879 | 1,111,629 |
Held to Maturity, Fair Value | ||
Within one year | 0 | 732 |
After one year but within five years | 9,373 | 9,476 |
After five years but within ten years | 42,615 | 45,944 |
After ten years | 875,692 | 983,952 |
Held-to-maturity, fair value total | $ 927,680 | $ 1,040,104 |
INVESTMENT SECURITIES - Sched_3
INVESTMENT SECURITIES - Schedule of Investment Securities' Gross Unrealized Losses and Fair Value by Investment Category (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Available-for-sale debt securities: | ||
Available-for-sale debt securities, Less than 12 months, Fair value | $ 20,220 | $ 1,530,406 |
Available-for-sale debt securities, Less than 12 months, Unrealized loss | 1,121 | 171,140 |
Available-for-sale debt securities, 12 months or longer, Fair value | 3,671,321 | 2,562,615 |
Available-for-sale debt securities, 12 months or longer, Unrealized loss | 891,528 | 570,350 |
Available-for-sale debt securities, Total, Fair value | 3,691,541 | 4,093,021 |
Available-for-sale debt securities, Total, Unrealized loss | 892,649 | 741,490 |
CMO | ||
Available-for-sale debt securities: | ||
Available-for-sale debt securities, Less than 12 months, Fair value | 0 | 158,449 |
Available-for-sale debt securities, Less than 12 months, Unrealized loss | 0 | 13,855 |
Available-for-sale debt securities, 12 months or longer, Fair value | 454,664 | 347,931 |
Available-for-sale debt securities, 12 months or longer, Unrealized loss | 118,729 | 88,599 |
Available-for-sale debt securities, Total, Fair value | 454,664 | 506,380 |
Available-for-sale debt securities, Total, Unrealized loss | 118,729 | 102,454 |
FNMA MBS | ||
Available-for-sale debt securities: | ||
Available-for-sale debt securities, Less than 12 months, Fair value | 8,792 | 1,237,560 |
Available-for-sale debt securities, Less than 12 months, Unrealized loss | 467 | 145,752 |
Available-for-sale debt securities, 12 months or longer, Fair value | 2,904,620 | 2,012,698 |
Available-for-sale debt securities, 12 months or longer, Unrealized loss | 694,216 | 427,026 |
Available-for-sale debt securities, Total, Fair value | 2,913,412 | 3,250,258 |
Available-for-sale debt securities, Total, Unrealized loss | 694,683 | 572,778 |
FHLMC MBS | ||
Available-for-sale debt securities: | ||
Available-for-sale debt securities, Less than 12 months, Fair value | 7 | 102,321 |
Available-for-sale debt securities, Less than 12 months, Unrealized loss | 0 | 9,268 |
Available-for-sale debt securities, 12 months or longer, Fair value | 110,712 | 19,671 |
Available-for-sale debt securities, 12 months or longer, Unrealized loss | 18,280 | 4,287 |
Available-for-sale debt securities, Total, Fair value | 110,719 | 121,992 |
Available-for-sale debt securities, Total, Unrealized loss | 18,280 | 13,555 |
GNMA MBS | ||
Available-for-sale debt securities: | ||
Available-for-sale debt securities, Less than 12 months, Fair value | 11,421 | 32,076 |
Available-for-sale debt securities, Less than 12 months, Unrealized loss | 654 | 2,265 |
Available-for-sale debt securities, 12 months or longer, Fair value | 31,330 | 4,030 |
Available-for-sale debt securities, 12 months or longer, Unrealized loss | 4,216 | 713 |
Available-for-sale debt securities, Total, Fair value | 42,751 | 36,106 |
Available-for-sale debt securities, Total, Unrealized loss | 4,870 | 2,978 |
GSE agency notes | ||
Available-for-sale debt securities: | ||
Available-for-sale debt securities, Less than 12 months, Fair value | 0 | 0 |
Available-for-sale debt securities, Less than 12 months, Unrealized loss | 0 | 0 |
Available-for-sale debt securities, 12 months or longer, Fair value | 169,995 | 178,285 |
Available-for-sale debt securities, 12 months or longer, Unrealized loss | 56,087 | 49,725 |
Available-for-sale debt securities, Total, Fair value | 169,995 | 178,285 |
Available-for-sale debt securities, Total, Unrealized loss | $ 56,087 | $ 49,725 |
INVESTMENT SECURITIES - Sched_4
INVESTMENT SECURITIES - Schedule of Held To Maturity Credit Quality Indicator (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Past due held-to-maturity debt securities | $ 1,068,879 | $ 1,111,629 |
FNMA MBS | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Past due held-to-maturity debt securities | 881,844 | 909,498 |
FNMA MBS | A+ rated or higher | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Past due held-to-maturity debt securities | 0 | 0 |
FNMA MBS | Not rated | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Past due held-to-maturity debt securities | 881,844 | 909,498 |
State and political subdivisions | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Past due held-to-maturity debt securities | 187,035 | 201,631 |
State and political subdivisions | A+ rated or higher | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Past due held-to-maturity debt securities | 187,035 | 201,631 |
State and political subdivisions | Not rated | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Past due held-to-maturity debt securities | $ 0 | 0 |
Foreign bonds | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Past due held-to-maturity debt securities | 500 | |
Foreign bonds | A+ rated or higher | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Past due held-to-maturity debt securities | 500 | |
Foreign bonds | Not rated | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Past due held-to-maturity debt securities | $ 0 |
INVESTMENT SECURITIES - Sched_5
INVESTMENT SECURITIES - Schedule of Held-to-maturity, Allowance for Credit Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Allowance for credit losses: | ||||
Beginning balance | $ 10 | |||
Ending balance | $ 8 | 8 | ||
State and political subdivisions | ||||
Allowance for credit losses: | ||||
Beginning balance | 8 | $ 6 | 10 | $ 4 |
Provision for (recovery of) credit losses | 0 | 4 | (2) | 6 |
Ending balance | $ 8 | $ 10 | $ 8 | $ 10 |
LOANS AND LEASES - Schedule of
LOANS AND LEASES - Schedule of Loan and Lease Portfolio by Category (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for credit losses | $ 175,988 | $ 171,869 | $ 151,861 | $ 146,195 | $ 141,970 | $ 94,507 |
Net loans and leases | 12,502,404 | 11,759,992 | ||||
Reverse mortgage, fair value | 2,800 | 2,400 | 3,000 | |||
Financing Receivable Portfolio Segment, Including Reverse Mortgages | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | 12,678,392 | 11,911,853 | ||||
Residential | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | 858,111 | 761,882 | ||||
Allowance for credit losses | 5,351 | 5,043 | 4,668 | 4,818 | 4,988 | 3,352 |
Consumer | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | 1,957,082 | 1,810,930 | ||||
Allowance for credit losses | 56,613 | 56,543 | 53,320 | 47,457 | 41,830 | 23,088 |
Commercial and industrial | Commercial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | 2,644,039 | 2,575,345 | ||||
Allowance for credit losses | 61,670 | 62,783 | 59,394 | 59,884 | 60,921 | 49,967 |
Owner-occupied commercial | Commercial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | 1,924,171 | 1,809,582 | ||||
Allowance for credit losses | 7,850 | 6,335 | 6,019 | 6,003 | 5,510 | 4,574 |
Commercial mortgages | Commercial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | 3,645,723 | 3,351,084 | ||||
Allowance for credit losses | 33,187 | 31,937 | 21,473 | 21,534 | 23,663 | 11,623 |
Construction | Commercial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | 1,043,568 | 1,044,049 | ||||
Allowance for credit losses | 11,317 | $ 9,228 | 6,987 | $ 6,499 | $ 5,058 | $ 1,903 |
Commercial small business leases | Commercial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | $ 605,698 | $ 558,981 |
LOANS AND LEASES - Narrative (D
LOANS AND LEASES - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Loans Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accrued interest receivable on loans and leases | $ 66.6 | $ 59.3 |
ALLOWANCE FOR CREDIT LOSSES A_3
ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY INFORMATION - Schedule of Allowance for Loan Losses and Loan Balances (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Allowance for credit losses | |||||
Beginning balance | $ 171,869 | $ 141,970 | $ 151,861 | $ 94,507 | |
Initial allowance on acquired PCD loans | 26,103 | ||||
Charge-offs | (16,847) | (7,498) | (46,387) | (16,316) | |
Recoveries | 2,552 | 4,273 | 7,257 | 7,214 | |
Provision (credit) | 18,414 | 7,450 | 63,257 | 34,687 | |
Ending balance | 175,988 | 146,195 | 175,988 | 146,195 | |
Period-end allowance allocated to: | |||||
Loans evaluated on an individual basis | 2,815 | 5,348 | 2,815 | 5,348 | |
Loans evaluated on a collective basis | 173,173 | 140,847 | 173,173 | 140,847 | |
Period-end loan balances: | |||||
Loans evaluated on an individual basis | 63,179 | 46,456 | 63,179 | 46,456 | |
Loans evaluated on a collective basis | 12,612,442 | 11,655,916 | 12,612,442 | 11,655,916 | |
Gross loans | 12,675,621 | 11,702,372 | 12,675,621 | 11,702,372 | $ 11,909,436 |
Reverse mortgage, fair value | 2,800 | 3,000 | 2,800 | 3,000 | 2,400 |
BMBC | |||||
Period-end loan balances: | |||||
Loans purchased with no credit deterioration | 23,500 | ||||
Commercial | Commercial and industrial | |||||
Allowance for credit losses | |||||
Beginning balance | 62,783 | 60,921 | 59,394 | 49,967 | |
Initial allowance on acquired PCD loans | 22,614 | ||||
Charge-offs | (10,675) | (5,120) | (30,496) | (11,308) | |
Recoveries | 2,124 | 3,194 | 5,554 | 4,667 | |
Provision (credit) | 7,438 | 889 | 27,218 | (6,056) | |
Ending balance | 61,670 | 59,884 | 61,670 | 59,884 | |
Period-end allowance allocated to: | |||||
Loans evaluated on an individual basis | 1,054 | 5,348 | 1,054 | 5,348 | |
Loans evaluated on a collective basis | 60,616 | 54,536 | 60,616 | 54,536 | |
Period-end loan balances: | |||||
Loans evaluated on an individual basis | 26,355 | 21,565 | 26,355 | 21,565 | |
Loans evaluated on a collective basis | 3,223,382 | 3,147,913 | 3,223,382 | 3,147,913 | |
Gross loans | 3,249,737 | 3,169,478 | 3,249,737 | 3,169,478 | 3,134,326 |
Commercial | Owner-occupied commercial | |||||
Allowance for credit losses | |||||
Beginning balance | 6,335 | 5,510 | 6,019 | 4,574 | |
Initial allowance on acquired PCD loans | 595 | ||||
Charge-offs | 0 | 0 | (184) | (179) | |
Recoveries | 14 | 4 | 50 | 271 | |
Provision (credit) | 1,501 | 489 | 1,965 | 742 | |
Ending balance | 7,850 | 6,003 | 7,850 | 6,003 | |
Period-end allowance allocated to: | |||||
Loans evaluated on an individual basis | 161 | 0 | 161 | 0 | |
Loans evaluated on a collective basis | 7,689 | 6,003 | 7,689 | 6,003 | |
Period-end loan balances: | |||||
Loans evaluated on an individual basis | 16,442 | 1,713 | 16,442 | 1,713 | |
Loans evaluated on a collective basis | 1,907,729 | 1,786,878 | 1,907,729 | 1,786,878 | |
Gross loans | 1,924,171 | 1,788,591 | 1,924,171 | 1,788,591 | 1,809,582 |
Commercial | Commercial mortgages | |||||
Allowance for credit losses | |||||
Beginning balance | 31,937 | 23,663 | 21,473 | 11,623 | |
Initial allowance on acquired PCD loans | 2,684 | ||||
Charge-offs | (300) | (544) | (300) | (581) | |
Recoveries | 1 | 101 | 4 | 223 | |
Provision (credit) | 1,549 | (1,686) | 12,010 | 7,585 | |
Ending balance | 33,187 | 21,534 | 33,187 | 21,534 | |
Period-end allowance allocated to: | |||||
Loans evaluated on an individual basis | 0 | 0 | 0 | 0 | |
Loans evaluated on a collective basis | 33,187 | 21,534 | 33,187 | 21,534 | |
Period-end loan balances: | |||||
Loans evaluated on an individual basis | 7,918 | 9,483 | 7,918 | 9,483 | |
Loans evaluated on a collective basis | 3,637,805 | 3,270,896 | 3,637,805 | 3,270,896 | |
Gross loans | 3,645,723 | 3,280,379 | 3,645,723 | 3,280,379 | 3,351,084 |
Commercial | Construction | |||||
Allowance for credit losses | |||||
Beginning balance | 9,228 | 5,058 | 6,987 | 1,903 | |
Initial allowance on acquired PCD loans | 71 | ||||
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 1 | 653 | 532 | 653 | |
Provision (credit) | 2,088 | 788 | 3,798 | 3,872 | |
Ending balance | 11,317 | 6,499 | 11,317 | 6,499 | |
Period-end allowance allocated to: | |||||
Loans evaluated on an individual basis | 1,600 | 0 | 1,600 | 0 | |
Loans evaluated on a collective basis | 9,717 | 6,499 | 9,717 | 6,499 | |
Period-end loan balances: | |||||
Loans evaluated on an individual basis | 4,828 | 5,360 | 4,828 | 5,360 | |
Loans evaluated on a collective basis | 1,038,740 | 1,022,843 | 1,038,740 | 1,022,843 | |
Gross loans | 1,043,568 | 1,028,203 | 1,043,568 | 1,028,203 | 1,044,049 |
Residential | |||||
Allowance for credit losses | |||||
Beginning balance | 5,043 | 4,988 | 4,668 | 3,352 | |
Initial allowance on acquired PCD loans | 61 | ||||
Charge-offs | 0 | 0 | (33) | (186) | |
Recoveries | 55 | 207 | 211 | 737 | |
Provision (credit) | 253 | (377) | 505 | 854 | |
Ending balance | 5,351 | 4,818 | 5,351 | 4,818 | |
Period-end allowance allocated to: | |||||
Loans evaluated on an individual basis | 0 | 0 | 0 | 0 | |
Loans evaluated on a collective basis | 5,351 | 4,818 | 5,351 | 4,818 | |
Period-end loan balances: | |||||
Loans evaluated on an individual basis | 5,838 | 6,451 | 5,838 | 6,451 | |
Loans evaluated on a collective basis | 849,502 | 752,142 | 849,502 | 752,142 | |
Gross loans | 855,340 | 758,593 | 855,340 | 758,593 | 759,465 |
Consumer | |||||
Allowance for credit losses | |||||
Beginning balance | 56,543 | 41,830 | 53,320 | 23,088 | |
Initial allowance on acquired PCD loans | 78 | ||||
Charge-offs | (5,872) | (1,834) | (15,374) | (4,062) | |
Recoveries | 357 | 114 | 906 | 663 | |
Provision (credit) | 5,585 | 7,347 | 17,761 | 27,690 | |
Ending balance | 56,613 | 47,457 | 56,613 | 47,457 | |
Period-end allowance allocated to: | |||||
Loans evaluated on an individual basis | 0 | 0 | 0 | 0 | |
Loans evaluated on a collective basis | 56,613 | 47,457 | 56,613 | 47,457 | |
Period-end loan balances: | |||||
Loans evaluated on an individual basis | 1,798 | 1,884 | 1,798 | 1,884 | |
Loans evaluated on a collective basis | 1,955,284 | 1,675,244 | 1,955,284 | 1,675,244 | |
Gross loans | $ 1,957,082 | $ 1,677,128 | $ 1,957,082 | $ 1,677,128 | $ 1,810,930 |
ALLOWANCE FOR CREDIT LOSSES A_4
ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY INFORMATION - Schedule of Nonaccrual and Past Due Loans (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Financing Receivable, Past Due [Line Items] | |||
Nonaccrual Loans With No Allowance | $ 47,139,000 | $ 22,802,000 | |
Nonaccrual Loans With An Allowance | 10,321,000 | 0 | |
Gross loans | $ 12,675,621,000 | $ 11,909,436,000 | $ 11,702,372,000 |
Percent of nonaccrual loans with no allowance | 0.37% | 0.19% | |
Percent of nonaccrual loans with allowance | 0.08% | ||
% of Total Loans | 100% | 100% | |
Reverse mortgage, fair value | $ 2,800,000 | $ 2,400,000 | 3,000,000 |
Total Past Due And Still Accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | $ 73,529,000 | $ 47,765,000 | |
Percent past due | 0.58% | 0.40% | |
30–89 Days Past Due and Still Accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | $ 59,172,000 | $ 31,230,000 | |
Percent past due | 0.47% | 0.26% | |
Greater Than 90 Days Past Due and Still Accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | $ 14,357,000 | $ 16,535,000 | |
Percent past due | 0.11% | 0.14% | |
Accruing Current Balances | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | $ 12,544,632,000 | $ 11,838,869,000 | |
Percent of accruing current balances | 98.97% | 99.41% | |
Residential | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | $ 858,111,000 | $ 761,882,000 | |
Nonaccrual Loans With No Allowance | 2,531,000 | 3,199,000 | |
Nonaccrual Loans With An Allowance | 0 | ||
Gross loans | 855,340,000 | 759,465,000 | 758,593,000 |
Residential | Total Past Due And Still Accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 6,764,000 | 2,563,000 | |
Residential | 30–89 Days Past Due and Still Accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 6,764,000 | 2,563,000 | |
Residential | Greater Than 90 Days Past Due and Still Accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 0 | 0 | |
Residential | Accruing Current Balances | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 846,045,000 | 753,703,000 | |
Consumer | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 1,957,082,000 | 1,810,930,000 | |
Nonaccrual Loans With No Allowance | 1,953,000 | 2,145,000 | |
Nonaccrual Loans With An Allowance | 0 | ||
Gross loans | 1,957,082,000 | 1,810,930,000 | 1,677,128,000 |
Consumer | Total Past Due And Still Accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 26,802,000 | 27,776,000 | |
Consumer | 30–89 Days Past Due and Still Accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 15,580,000 | 12,263,000 | |
Consumer | Greater Than 90 Days Past Due and Still Accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 11,222,000 | 15,513,000 | |
Consumer | Accruing Current Balances | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 1,928,327,000 | 1,781,009,000 | |
Commercial and industrial | Commercial | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 2,644,039,000 | 2,575,345,000 | |
Nonaccrual Loans With No Allowance | 21,138,000 | 6,770,000 | |
Nonaccrual Loans With An Allowance | 5,157,000 | ||
Gross loans | 3,249,737,000 | 3,134,326,000 | 3,169,478,000 |
Commercial and industrial | Commercial | Total Past Due And Still Accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 11,302,000 | 11,078,000 | |
Commercial and industrial | Commercial | 30–89 Days Past Due and Still Accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 10,183,000 | 10,767,000 | |
Commercial and industrial | Commercial | Greater Than 90 Days Past Due and Still Accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 1,119,000 | 311,000 | |
Commercial and industrial | Commercial | Accruing Current Balances | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 3,212,140,000 | 3,116,478,000 | |
Owner-occupied commercial | Commercial | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 1,924,171,000 | 1,809,582,000 | |
Nonaccrual Loans With No Allowance | 14,085,000 | 386,000 | |
Nonaccrual Loans With An Allowance | 1,062,000 | ||
Gross loans | 1,924,171,000 | 1,809,582,000 | 1,788,591,000 |
Owner-occupied commercial | Commercial | Total Past Due And Still Accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 1,669,000 | 3,974,000 | |
Owner-occupied commercial | Commercial | 30–89 Days Past Due and Still Accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 1,669,000 | 3,500,000 | |
Owner-occupied commercial | Commercial | Greater Than 90 Days Past Due and Still Accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 0 | 474,000 | |
Owner-occupied commercial | Commercial | Accruing Current Balances | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 1,907,355,000 | 1,805,222,000 | |
Commercial mortgages | Commercial | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 3,645,723,000 | 3,351,084,000 | |
Nonaccrual Loans With No Allowance | 6,706,000 | 5,159,000 | |
Nonaccrual Loans With An Allowance | 0 | ||
Gross loans | 3,645,723,000 | 3,351,084,000 | 3,280,379,000 |
Commercial mortgages | Commercial | Total Past Due And Still Accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 16,691,000 | 2,374,000 | |
Commercial mortgages | Commercial | 30–89 Days Past Due and Still Accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 16,691,000 | 2,137,000 | |
Commercial mortgages | Commercial | Greater Than 90 Days Past Due and Still Accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 0 | 237,000 | |
Commercial mortgages | Commercial | Accruing Current Balances | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 3,622,326,000 | 3,343,551,000 | |
Construction | Commercial | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 1,043,568,000 | 1,044,049,000 | |
Nonaccrual Loans With No Allowance | 726,000 | 5,143,000 | |
Nonaccrual Loans With An Allowance | 4,102,000 | ||
Gross loans | 1,043,568,000 | 1,044,049,000 | $ 1,028,203,000 |
Construction | Commercial | Total Past Due And Still Accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 10,301,000 | 0 | |
Construction | Commercial | 30–89 Days Past Due and Still Accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 8,285,000 | 0 | |
Construction | Commercial | Greater Than 90 Days Past Due and Still Accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 2,016,000 | 0 | |
Construction | Commercial | Accruing Current Balances | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | 1,028,439,000 | 1,038,906,000 | |
Student loans | Consumer | Total Past Due And Still Accruing | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans | $ 16,100,000 | $ 21,100,000 |
ALLOWANCE FOR CREDIT LOSSES A_5
ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY INFORMATION - Schedule Of Collateral Dependent Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Property | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortized cost basis of nonaccruing collateral-dependent loans | $ 52,815 | $ 19,880 |
Equipment and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortized cost basis of nonaccruing collateral-dependent loans | 4,645 | 2,922 |
Commercial | Commercial and industrial | Property | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortized cost basis of nonaccruing collateral-dependent loans | 21,650 | 3,848 |
Commercial | Commercial and industrial | Equipment and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortized cost basis of nonaccruing collateral-dependent loans | 4,645 | 2,922 |
Commercial | Owner-occupied commercial | Property | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortized cost basis of nonaccruing collateral-dependent loans | 15,147 | 386 |
Commercial | Owner-occupied commercial | Equipment and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortized cost basis of nonaccruing collateral-dependent loans | 0 | 0 |
Commercial | Commercial mortgages | Property | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortized cost basis of nonaccruing collateral-dependent loans | 6,706 | 5,159 |
Commercial | Commercial mortgages | Equipment and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortized cost basis of nonaccruing collateral-dependent loans | 0 | 0 |
Commercial | Construction | Property | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortized cost basis of nonaccruing collateral-dependent loans | 4,828 | 5,143 |
Commercial | Construction | Equipment and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortized cost basis of nonaccruing collateral-dependent loans | 0 | 0 |
Residential | Property | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortized cost basis of nonaccruing collateral-dependent loans | 2,531 | 3,199 |
Residential | Equipment and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortized cost basis of nonaccruing collateral-dependent loans | 0 | 0 |
Consumer | Property | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortized cost basis of nonaccruing collateral-dependent loans | 1,953 | 2,145 |
Consumer | Equipment and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amortized cost basis of nonaccruing collateral-dependent loans | $ 0 | $ 0 |
ALLOWANCE FOR CREDIT LOSSES A_6
ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY INFORMATION - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) loan | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan workout and OREO (recoveries) expenses | $ (189) | $ 1,001 | $ 292 | $ 1,103 | |
Troubled debt restructuring related reserves | $ 600 | ||||
Usual sustained repayment performance period | 6 months | ||||
Various Modifications | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Unused commitments to extend credit | 4,800 | $ 4,800 | |||
Residential | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of loans in the process of foreclosure | loan | 33 | 45 | |||
Total loans outstanding | $ 3,800 | $ 6,700 | |||
Commercial | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of loans in the process of foreclosure | loan | 14 | 8 | |||
Total loans outstanding | $ 3,600 | $ 1,600 | |||
Residential and Consumer Loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan workout and OREO (recoveries) expenses | $ (300) | $ 300 | $ 100 | $ 500 | |
Impairment loans, charge off period | 90 days |
ALLOWANCE FOR CREDIT LOSSES A_7
ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY INFORMATION - Schedule of Credit Quality Indicators (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Total Loans | $ 12,675,621 | $ 11,702,372 | $ 12,675,621 | $ 11,702,372 | $ 11,909,436 |
Total charge offs | 16,847 | 7,498 | 46,387 | 16,316 | |
Commercial | Commercial and industrial | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Year one, originated, current fiscal year | 898,486 | 898,486 | 1,184,837 | ||
Year two, originated, fiscal year before current fiscal year | 913,460 | 913,460 | 545,612 | ||
Year three, originated, two years before current fiscal year | 330,094 | 330,094 | 401,753 | ||
Year four, originated, three years before current fiscal year | 276,160 | 276,160 | 258,295 | ||
Year five, originated, four years before current fiscal year | 145,062 | 145,062 | 191,193 | ||
Prior | 416,420 | 416,420 | 284,366 | ||
Revolving loans amortized cost basis | 8,710 | 8,710 | 8,099 | ||
Revolving loans converted to term | 261,345 | 261,345 | 260,171 | ||
Total Loans | 3,249,737 | 3,169,478 | 3,249,737 | 3,169,478 | 3,134,326 |
Year one, current fiscal year charge offs | 399 | ||||
Year two, current fiscal year charge offs | 5,410 | ||||
Year three, current fiscal year charge offs | 8,437 | ||||
Year four, current fiscal year charge offs | 1,398 | ||||
Year five, current fiscal year charge offs | 6,435 | ||||
Prior year charge offs | 8,417 | ||||
Revolving loans amortized cost basis charge offs | 0 | ||||
Revolving loans converted to term gross charge offs | 0 | ||||
Total charge offs | 10,675 | 5,120 | 30,496 | 11,308 | |
Commercial | Commercial and industrial | Pass | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Year one, originated, current fiscal year | 830,232 | 830,232 | 1,123,803 | ||
Year two, originated, fiscal year before current fiscal year | 854,412 | 854,412 | 501,761 | ||
Year three, originated, two years before current fiscal year | 321,269 | 321,269 | 387,225 | ||
Year four, originated, three years before current fiscal year | 264,724 | 264,724 | 211,310 | ||
Year five, originated, four years before current fiscal year | 119,282 | 119,282 | 153,713 | ||
Prior | 396,845 | 396,845 | 276,588 | ||
Revolving loans amortized cost basis | 8,710 | 8,710 | 8,099 | ||
Revolving loans converted to term | 243,969 | 243,969 | 250,486 | ||
Total Loans | 3,039,443 | 3,039,443 | 2,912,985 | ||
Commercial | Commercial and industrial | Special mention | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Year one, originated, current fiscal year | 14,913 | 14,913 | 28,672 | ||
Year two, originated, fiscal year before current fiscal year | 24,194 | 24,194 | 27,689 | ||
Year three, originated, two years before current fiscal year | 2,917 | 2,917 | 7,585 | ||
Year four, originated, three years before current fiscal year | 350 | 350 | 9,451 | ||
Year five, originated, four years before current fiscal year | 798 | 798 | 347 | ||
Prior | 7 | 7 | 1,010 | ||
Revolving loans amortized cost basis | 0 | 0 | 0 | ||
Revolving loans converted to term | 861 | 861 | 2,596 | ||
Total Loans | 44,040 | 44,040 | 77,350 | ||
Commercial | Commercial and industrial | Substandard or Lower | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Year one, originated, current fiscal year | 53,341 | 53,341 | 32,362 | ||
Year two, originated, fiscal year before current fiscal year | 34,854 | 34,854 | 16,162 | ||
Year three, originated, two years before current fiscal year | 5,908 | 5,908 | 6,943 | ||
Year four, originated, three years before current fiscal year | 11,086 | 11,086 | 37,534 | ||
Year five, originated, four years before current fiscal year | 24,982 | 24,982 | 37,133 | ||
Prior | 19,568 | 19,568 | 6,768 | ||
Revolving loans amortized cost basis | 0 | 0 | 0 | ||
Revolving loans converted to term | 16,515 | 16,515 | 7,089 | ||
Total Loans | 166,254 | 166,254 | 143,991 | ||
Commercial | Owner-occupied commercial | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Year one, originated, current fiscal year | 301,583 | 301,583 | 301,255 | ||
Year two, originated, fiscal year before current fiscal year | 290,518 | 290,518 | 326,888 | ||
Year three, originated, two years before current fiscal year | 284,754 | 284,754 | 281,461 | ||
Year four, originated, three years before current fiscal year | 225,770 | 225,770 | 231,118 | ||
Year five, originated, four years before current fiscal year | 219,451 | 219,451 | 118,254 | ||
Prior | 409,995 | 409,995 | 400,897 | ||
Revolving loans amortized cost basis | 0 | 0 | 0 | ||
Revolving loans converted to term | 192,100 | 192,100 | 149,709 | ||
Total Loans | 1,924,171 | 1,788,591 | 1,924,171 | 1,788,591 | 1,809,582 |
Year one, current fiscal year charge offs | 0 | ||||
Year two, current fiscal year charge offs | 0 | ||||
Year three, current fiscal year charge offs | 0 | ||||
Year four, current fiscal year charge offs | 0 | ||||
Year five, current fiscal year charge offs | 184 | ||||
Prior year charge offs | 0 | ||||
Revolving loans amortized cost basis charge offs | 0 | ||||
Revolving loans converted to term gross charge offs | 0 | ||||
Total charge offs | 0 | 0 | 184 | 179 | |
Commercial | Owner-occupied commercial | Pass | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Year one, originated, current fiscal year | 289,740 | 289,740 | 280,898 | ||
Year two, originated, fiscal year before current fiscal year | 269,796 | 269,796 | 325,388 | ||
Year three, originated, two years before current fiscal year | 268,593 | 268,593 | 258,177 | ||
Year four, originated, three years before current fiscal year | 213,060 | 213,060 | 226,717 | ||
Year five, originated, four years before current fiscal year | 206,999 | 206,999 | 106,390 | ||
Prior | 361,669 | 361,669 | 363,420 | ||
Revolving loans amortized cost basis | 0 | 0 | 0 | ||
Revolving loans converted to term | 171,762 | 171,762 | 132,942 | ||
Total Loans | 1,781,619 | 1,781,619 | 1,693,932 | ||
Commercial | Owner-occupied commercial | Special mention | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Year one, originated, current fiscal year | 2,907 | 2,907 | 17,376 | ||
Year two, originated, fiscal year before current fiscal year | 2,182 | 2,182 | 0 | ||
Year three, originated, two years before current fiscal year | 6,638 | 6,638 | 0 | ||
Year four, originated, three years before current fiscal year | 1,122 | 1,122 | 0 | ||
Year five, originated, four years before current fiscal year | 9,621 | 9,621 | 0 | ||
Prior | 5,601 | 5,601 | 2,166 | ||
Revolving loans amortized cost basis | 0 | 0 | 0 | ||
Revolving loans converted to term | 1,615 | 1,615 | 3,351 | ||
Total Loans | 29,686 | 29,686 | 22,893 | ||
Commercial | Owner-occupied commercial | Substandard or Lower | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Year one, originated, current fiscal year | 8,936 | 8,936 | 2,981 | ||
Year two, originated, fiscal year before current fiscal year | 18,540 | 18,540 | 1,500 | ||
Year three, originated, two years before current fiscal year | 9,523 | 9,523 | 23,284 | ||
Year four, originated, three years before current fiscal year | 11,588 | 11,588 | 4,401 | ||
Year five, originated, four years before current fiscal year | 2,831 | 2,831 | 11,864 | ||
Prior | 42,725 | 42,725 | 35,311 | ||
Revolving loans amortized cost basis | 0 | 0 | 0 | ||
Revolving loans converted to term | 18,723 | 18,723 | 13,416 | ||
Total Loans | 112,866 | 112,866 | 92,757 | ||
Commercial | Commercial mortgages | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Year one, originated, current fiscal year | 701,545 | 701,545 | 520,094 | ||
Year two, originated, fiscal year before current fiscal year | 480,687 | 480,687 | 601,511 | ||
Year three, originated, two years before current fiscal year | 523,081 | 523,081 | 542,712 | ||
Year four, originated, three years before current fiscal year | 491,212 | 491,212 | 558,818 | ||
Year five, originated, four years before current fiscal year | 520,554 | 520,554 | 289,583 | ||
Prior | 649,755 | 649,755 | 627,247 | ||
Revolving loans amortized cost basis | 0 | 0 | 0 | ||
Revolving loans converted to term | 278,889 | 278,889 | 211,119 | ||
Total Loans | 3,645,723 | 3,280,379 | 3,645,723 | 3,280,379 | 3,351,084 |
Year one, current fiscal year charge offs | 0 | ||||
Year two, current fiscal year charge offs | 83 | ||||
Year three, current fiscal year charge offs | 0 | ||||
Year four, current fiscal year charge offs | 217 | ||||
Year five, current fiscal year charge offs | 0 | ||||
Prior year charge offs | 0 | ||||
Revolving loans amortized cost basis charge offs | 0 | ||||
Revolving loans converted to term gross charge offs | 0 | ||||
Total charge offs | 300 | 544 | 300 | 581 | |
Commercial | Commercial mortgages | Pass | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Year one, originated, current fiscal year | 682,033 | 682,033 | 516,783 | ||
Year two, originated, fiscal year before current fiscal year | 478,103 | 478,103 | 600,226 | ||
Year three, originated, two years before current fiscal year | 521,669 | 521,669 | 526,312 | ||
Year four, originated, three years before current fiscal year | 475,369 | 475,369 | 549,788 | ||
Year five, originated, four years before current fiscal year | 494,904 | 494,904 | 276,414 | ||
Prior | 625,112 | 625,112 | 594,024 | ||
Revolving loans amortized cost basis | 0 | 0 | 0 | ||
Revolving loans converted to term | 263,124 | 263,124 | 210,550 | ||
Total Loans | 3,540,314 | 3,540,314 | 3,274,097 | ||
Commercial | Commercial mortgages | Special mention | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Year one, originated, current fiscal year | 9,599 | 9,599 | 1,450 | ||
Year two, originated, fiscal year before current fiscal year | 0 | 0 | 75 | ||
Year three, originated, two years before current fiscal year | 69 | 69 | 3,848 | ||
Year four, originated, three years before current fiscal year | 4,802 | 4,802 | 6,121 | ||
Year five, originated, four years before current fiscal year | 24,401 | 24,401 | 9,596 | ||
Prior | 19,797 | 19,797 | 32,014 | ||
Revolving loans amortized cost basis | 0 | 0 | 0 | ||
Revolving loans converted to term | 294 | 294 | 0 | ||
Total Loans | 58,962 | 58,962 | 53,104 | ||
Commercial | Commercial mortgages | Substandard or Lower | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Year one, originated, current fiscal year | 9,913 | 9,913 | 1,861 | ||
Year two, originated, fiscal year before current fiscal year | 2,584 | 2,584 | 1,210 | ||
Year three, originated, two years before current fiscal year | 1,343 | 1,343 | 12,552 | ||
Year four, originated, three years before current fiscal year | 11,041 | 11,041 | 2,909 | ||
Year five, originated, four years before current fiscal year | 1,249 | 1,249 | 3,573 | ||
Prior | 4,846 | 4,846 | 1,209 | ||
Revolving loans amortized cost basis | 0 | 0 | 0 | ||
Revolving loans converted to term | 15,471 | 15,471 | 569 | ||
Total Loans | 46,447 | 46,447 | 23,883 | ||
Commercial | Construction | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Year one, originated, current fiscal year | 384,438 | 384,438 | 448,581 | ||
Year two, originated, fiscal year before current fiscal year | 402,114 | 402,114 | 303,819 | ||
Year three, originated, two years before current fiscal year | 173,449 | 173,449 | 124,597 | ||
Year four, originated, three years before current fiscal year | 29,833 | 29,833 | 9,502 | ||
Year five, originated, four years before current fiscal year | 2,566 | 2,566 | 26,553 | ||
Prior | 9,241 | 9,241 | 7,539 | ||
Revolving loans amortized cost basis | 0 | 0 | 0 | ||
Revolving loans converted to term | 41,927 | 41,927 | 123,458 | ||
Total Loans | 1,043,568 | 1,028,203 | 1,043,568 | 1,028,203 | 1,044,049 |
Year one, current fiscal year charge offs | 0 | ||||
Year two, current fiscal year charge offs | 0 | ||||
Year three, current fiscal year charge offs | 0 | ||||
Year four, current fiscal year charge offs | 0 | ||||
Year five, current fiscal year charge offs | 0 | ||||
Prior year charge offs | 0 | ||||
Revolving loans amortized cost basis charge offs | 0 | ||||
Revolving loans converted to term gross charge offs | 0 | ||||
Total charge offs | 0 | 0 | 0 | 0 | |
Commercial | Construction | Pass | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Year one, originated, current fiscal year | 361,914 | 361,914 | 448,581 | ||
Year two, originated, fiscal year before current fiscal year | 387,776 | 387,776 | 299,619 | ||
Year three, originated, two years before current fiscal year | 158,656 | 158,656 | 115,667 | ||
Year four, originated, three years before current fiscal year | 20,879 | 20,879 | 9,319 | ||
Year five, originated, four years before current fiscal year | 2,405 | 2,405 | 26,553 | ||
Prior | 9,241 | 9,241 | 7,539 | ||
Revolving loans amortized cost basis | 0 | 0 | 0 | ||
Revolving loans converted to term | 41,362 | 41,362 | 122,116 | ||
Total Loans | 982,233 | 982,233 | 1,029,394 | ||
Commercial | Construction | Special mention | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Year one, originated, current fiscal year | 14,239 | 14,239 | 0 | ||
Year two, originated, fiscal year before current fiscal year | 14,338 | 14,338 | 0 | ||
Year three, originated, two years before current fiscal year | 10,691 | 10,691 | 0 | ||
Year four, originated, three years before current fiscal year | 0 | 0 | 0 | ||
Year five, originated, four years before current fiscal year | 0 | 0 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving loans amortized cost basis | 0 | 0 | 0 | ||
Revolving loans converted to term | 0 | 0 | 581 | ||
Total Loans | 39,268 | 39,268 | 581 | ||
Commercial | Construction | Substandard or Lower | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Year one, originated, current fiscal year | 8,285 | 8,285 | 0 | ||
Year two, originated, fiscal year before current fiscal year | 0 | 0 | 4,200 | ||
Year three, originated, two years before current fiscal year | 4,102 | 4,102 | 8,930 | ||
Year four, originated, three years before current fiscal year | 8,954 | 8,954 | 183 | ||
Year five, originated, four years before current fiscal year | 161 | 161 | 0 | ||
Prior | 0 | 0 | 0 | ||
Revolving loans amortized cost basis | 0 | 0 | 0 | ||
Revolving loans converted to term | 565 | 565 | 761 | ||
Total Loans | 22,067 | 22,067 | 14,074 | ||
Residential | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Year one, originated, current fiscal year | 152,336 | 152,336 | 64,500 | ||
Year two, originated, fiscal year before current fiscal year | 69,160 | 69,160 | 111,237 | ||
Year three, originated, two years before current fiscal year | 105,253 | 105,253 | 61,127 | ||
Year four, originated, three years before current fiscal year | 58,251 | 58,251 | 37,117 | ||
Year five, originated, four years before current fiscal year | 35,464 | 35,464 | 47,077 | ||
Prior | 434,876 | 434,876 | 438,407 | ||
Revolving loans amortized cost basis | 0 | 0 | 0 | ||
Revolving loans converted to term | 0 | 0 | 0 | ||
Total Loans | 855,340 | 758,593 | 855,340 | 758,593 | 759,465 |
Year one, current fiscal year charge offs | 33 | ||||
Year two, current fiscal year charge offs | 0 | ||||
Year three, current fiscal year charge offs | 0 | ||||
Year four, current fiscal year charge offs | 0 | ||||
Year five, current fiscal year charge offs | 0 | ||||
Prior year charge offs | 0 | ||||
Revolving loans amortized cost basis charge offs | 0 | ||||
Revolving loans converted to term gross charge offs | 0 | ||||
Total charge offs | 0 | 0 | 33 | 186 | |
Residential | Performing | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Year one, originated, current fiscal year | 152,336 | 152,336 | 64,500 | ||
Year two, originated, fiscal year before current fiscal year | 68,990 | 68,990 | 110,508 | ||
Year three, originated, two years before current fiscal year | 104,664 | 104,664 | 60,625 | ||
Year four, originated, three years before current fiscal year | 57,762 | 57,762 | 36,118 | ||
Year five, originated, four years before current fiscal year | 34,205 | 34,205 | 45,859 | ||
Prior | 431,381 | 431,381 | 434,175 | ||
Revolving loans amortized cost basis | 0 | 0 | 0 | ||
Revolving loans converted to term | 0 | 0 | 0 | ||
Total Loans | 849,338 | 849,338 | 751,785 | ||
Residential | Nonperforming | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Year one, originated, current fiscal year | 0 | 0 | 0 | ||
Year two, originated, fiscal year before current fiscal year | 170 | 170 | 729 | ||
Year three, originated, two years before current fiscal year | 589 | 589 | 502 | ||
Year four, originated, three years before current fiscal year | 489 | 489 | 999 | ||
Year five, originated, four years before current fiscal year | 1,259 | 1,259 | 1,218 | ||
Prior | 3,495 | 3,495 | 4,232 | ||
Revolving loans amortized cost basis | 0 | 0 | 0 | ||
Revolving loans converted to term | 0 | 0 | 0 | ||
Total Loans | 6,002 | 6,002 | 7,680 | ||
Consumer | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Year one, originated, current fiscal year | 251,967 | 251,967 | 595,158 | ||
Year two, originated, fiscal year before current fiscal year | 598,183 | 598,183 | 195,397 | ||
Year three, originated, two years before current fiscal year | 164,642 | 164,642 | 126,806 | ||
Year four, originated, three years before current fiscal year | 108,149 | 108,149 | 54,449 | ||
Year five, originated, four years before current fiscal year | 47,087 | 47,087 | 220,518 | ||
Prior | 256,796 | 256,796 | 71,478 | ||
Revolving loans amortized cost basis | 524,758 | 524,758 | 541,563 | ||
Revolving loans converted to term | 5,500 | 5,500 | 5,561 | ||
Total Loans | 1,957,082 | 1,677,128 | 1,957,082 | 1,677,128 | 1,810,930 |
Year one, current fiscal year charge offs | 787 | ||||
Year two, current fiscal year charge offs | 10,716 | ||||
Year three, current fiscal year charge offs | 3,174 | ||||
Year four, current fiscal year charge offs | 235 | ||||
Year five, current fiscal year charge offs | 142 | ||||
Prior year charge offs | 320 | ||||
Revolving loans amortized cost basis charge offs | 0 | ||||
Revolving loans converted to term gross charge offs | 0 | ||||
Total charge offs | 5,872 | $ 1,834 | 15,374 | $ 4,062 | |
Consumer | Performing | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Year one, originated, current fiscal year | 251,967 | 251,967 | 595,158 | ||
Year two, originated, fiscal year before current fiscal year | 598,183 | 598,183 | 195,397 | ||
Year three, originated, two years before current fiscal year | 164,642 | 164,642 | 126,456 | ||
Year four, originated, three years before current fiscal year | 107,950 | 107,950 | 54,449 | ||
Year five, originated, four years before current fiscal year | 47,046 | 47,046 | 220,039 | ||
Prior | 256,796 | 256,796 | 71,478 | ||
Revolving loans amortized cost basis | 523,391 | 523,391 | 540,308 | ||
Revolving loans converted to term | 5,188 | 5,188 | 5,232 | ||
Total Loans | 1,955,163 | 1,955,163 | 1,808,517 | ||
Consumer | Nonperforming | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Year one, originated, current fiscal year | 0 | 0 | 0 | ||
Year two, originated, fiscal year before current fiscal year | 0 | 0 | 0 | ||
Year three, originated, two years before current fiscal year | 0 | 0 | 350 | ||
Year four, originated, three years before current fiscal year | 199 | 199 | 0 | ||
Year five, originated, four years before current fiscal year | 41 | 41 | 479 | ||
Prior | 0 | 0 | 0 | ||
Revolving loans amortized cost basis | 1,367 | 1,367 | 1,255 | ||
Revolving loans converted to term | 312 | 312 | 329 | ||
Total Loans | $ 1,919 | $ 1,919 | $ 2,413 |
ALLOWANCE FOR CREDIT LOSSES A_8
ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY INFORMATION - Schedule of Troubled Loans Disaggregated by Portfolio Segment (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | $ 78,186 |
% of Total Loan Category | 0.62% |
Term Extension | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | $ 56,969 |
More-Than-Insignificant Payment Delay | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 3,947 |
Combination- Term Extension and Payment Delay | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 16,379 |
Combination- Term Extension and Interest Rate Reduction | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 397 |
Combination - Payment Delay and Interest Rate Reduction | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 494 |
Commercial | Commercial and industrial | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | $ 48,070 |
% of Total Loan Category | 1.48% |
Commercial | Commercial and industrial | Term Extension | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | $ 36,683 |
Commercial | Commercial and industrial | More-Than-Insignificant Payment Delay | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 1,193 |
Commercial | Commercial and industrial | Combination- Term Extension and Payment Delay | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 10,163 |
Commercial | Commercial and industrial | Combination- Term Extension and Interest Rate Reduction | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 31 |
Commercial | Commercial and industrial | Combination - Payment Delay and Interest Rate Reduction | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 0 |
Commercial | Owner-occupied commercial | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | $ 1,271 |
% of Total Loan Category | 0.07% |
Commercial | Owner-occupied commercial | Term Extension | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | $ 0 |
Commercial | Owner-occupied commercial | More-Than-Insignificant Payment Delay | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 0 |
Commercial | Owner-occupied commercial | Combination- Term Extension and Payment Delay | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 1,062 |
Commercial | Owner-occupied commercial | Combination- Term Extension and Interest Rate Reduction | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 209 |
Commercial | Owner-occupied commercial | Combination - Payment Delay and Interest Rate Reduction | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 0 |
Commercial | Commercial mortgages | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | $ 9,427 |
% of Total Loan Category | 0.26% |
Commercial | Commercial mortgages | Term Extension | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | $ 9,427 |
Commercial | Commercial mortgages | More-Than-Insignificant Payment Delay | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 0 |
Commercial | Commercial mortgages | Combination- Term Extension and Payment Delay | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 0 |
Commercial | Commercial mortgages | Combination- Term Extension and Interest Rate Reduction | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 0 |
Commercial | Commercial mortgages | Combination - Payment Delay and Interest Rate Reduction | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 0 |
Commercial | Construction | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | $ 9,194 |
% of Total Loan Category | 0.88% |
Commercial | Construction | Term Extension | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | $ 9,194 |
Commercial | Construction | More-Than-Insignificant Payment Delay | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 0 |
Commercial | Construction | Combination- Term Extension and Payment Delay | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 0 |
Commercial | Construction | Combination- Term Extension and Interest Rate Reduction | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 0 |
Commercial | Construction | Combination - Payment Delay and Interest Rate Reduction | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 0 |
Residential | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | $ 613 |
% of Total Loan Category | 0.07% |
Residential | Term Extension | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | $ 563 |
Residential | More-Than-Insignificant Payment Delay | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 50 |
Residential | Combination- Term Extension and Payment Delay | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 0 |
Residential | Combination- Term Extension and Interest Rate Reduction | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 0 |
Residential | Combination - Payment Delay and Interest Rate Reduction | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 0 |
Consumer | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | $ 9,611 |
% of Total Loan Category | 0.49% |
Consumer | Term Extension | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | $ 1,102 |
Consumer | More-Than-Insignificant Payment Delay | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 2,704 |
Consumer | Combination- Term Extension and Payment Delay | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 5,154 |
Consumer | Combination- Term Extension and Interest Rate Reduction | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 157 |
Consumer | Combination - Payment Delay and Interest Rate Reduction | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | $ 494 |
ALLOWANCE FOR CREDIT LOSSES A_9
ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY INFORMATION - Schedule of Financial Effect of the Modifications (Details) | 9 Months Ended |
Sep. 30, 2023 | |
Commercial | Commercial and industrial | Term Extension | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Term Extension | 1 year 6 months 18 days |
Commercial | Commercial and industrial | Interest Rate Reduction | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Interest Rate Reduction | 4% |
Commercial | Commercial and industrial | More-Than-Insignificant Payment Delay | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
More-Than-Insignificant Payment Delay | 0.09% |
Commercial | Owner-occupied commercial | Term Extension | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Term Extension | 1 year 3 months 7 days |
Commercial | Owner-occupied commercial | Interest Rate Reduction | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Interest Rate Reduction | 2.58% |
Commercial | Owner-occupied commercial | More-Than-Insignificant Payment Delay | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
More-Than-Insignificant Payment Delay | 0.01% |
Commercial | Commercial mortgages | Term Extension | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Term Extension | 1 year 3 months 29 days |
Commercial | Commercial mortgages | Interest Rate Reduction | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Interest Rate Reduction | 0% |
Commercial | Commercial mortgages | More-Than-Insignificant Payment Delay | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
More-Than-Insignificant Payment Delay | 0% |
Commercial | Construction | Term Extension | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Term Extension | 3 months 7 days |
Commercial | Construction | Interest Rate Reduction | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Interest Rate Reduction | 0% |
Commercial | Construction | More-Than-Insignificant Payment Delay | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
More-Than-Insignificant Payment Delay | 0% |
Residential | Term Extension | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Term Extension | 20 years 2 months 4 days |
Residential | Interest Rate Reduction | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Interest Rate Reduction | 0% |
Residential | More-Than-Insignificant Payment Delay | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
More-Than-Insignificant Payment Delay | 0% |
Consumer | Term Extension | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Term Extension | 3 years 25 days |
Consumer | Interest Rate Reduction | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Interest Rate Reduction | 3.27% |
Consumer | More-Than-Insignificant Payment Delay | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
More-Than-Insignificant Payment Delay | 0.07% |
ALLOWANCE FOR CREDIT LOSSES _10
ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY INFORMATION - Schedule of Amortized Cost of Loans Received Term Extension Modification (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | $ 78,186 |
Consumer | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 9,611 |
Loans Modified | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 12,033 |
Loans Modified | Consumer | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 101 |
Term Extension | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 707 |
Term Extension | Consumer | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 0 |
More-Than-Insignificant Payment Delay | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 101 |
More-Than-Insignificant Payment Delay | Consumer | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 101 |
Combination Term Extension & Payment Delay | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 11,225 |
Combination Term Extension & Payment Delay | Consumer | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 0 |
Commercial and industrial | Commercial | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 48,070 |
Commercial and industrial | Loans Modified | Commercial | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 10,870 |
Commercial and industrial | Term Extension | Commercial | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 707 |
Commercial and industrial | More-Than-Insignificant Payment Delay | Commercial | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 0 |
Commercial and industrial | Combination Term Extension & Payment Delay | Commercial | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 10,163 |
Owner-occupied commercial | Commercial | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 1,271 |
Owner-occupied commercial | Loans Modified | Commercial | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 1,062 |
Owner-occupied commercial | Term Extension | Commercial | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 0 |
Owner-occupied commercial | More-Than-Insignificant Payment Delay | Commercial | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 0 |
Owner-occupied commercial | Combination Term Extension & Payment Delay | Commercial | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 1,062 |
Construction | Commercial | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | $ 9,194 |
ALLOWANCE FOR CREDIT LOSSES _11
ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY INFORMATION - Schedule of Performance of Loans (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | $ 78,186 |
30-89 Days Past Due and Still Accruing | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 9,440 |
90+ Days Past Due and Still Accruing | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 207 |
Accruing Current Balances | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 55,525 |
Nonaccrual Loans | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 13,014 |
Commercial | Commercial and industrial | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 48,070 |
Commercial | Commercial and industrial | 30-89 Days Past Due and Still Accruing | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 428 |
Commercial | Commercial and industrial | 90+ Days Past Due and Still Accruing | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 0 |
Commercial | Commercial and industrial | Accruing Current Balances | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 36,299 |
Commercial | Commercial and industrial | Nonaccrual Loans | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 11,343 |
Commercial | Owner-occupied commercial | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 1,271 |
Commercial | Owner-occupied commercial | 30-89 Days Past Due and Still Accruing | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 0 |
Commercial | Owner-occupied commercial | 90+ Days Past Due and Still Accruing | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 0 |
Commercial | Owner-occupied commercial | Accruing Current Balances | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 0 |
Commercial | Owner-occupied commercial | Nonaccrual Loans | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 1,271 |
Commercial | Commercial mortgages | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 9,427 |
Commercial | Commercial mortgages | 30-89 Days Past Due and Still Accruing | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 0 |
Commercial | Commercial mortgages | 90+ Days Past Due and Still Accruing | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 0 |
Commercial | Commercial mortgages | Accruing Current Balances | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 9,427 |
Commercial | Commercial mortgages | Nonaccrual Loans | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 0 |
Commercial | Construction | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 9,194 |
Commercial | Construction | 30-89 Days Past Due and Still Accruing | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 8,285 |
Commercial | Construction | 90+ Days Past Due and Still Accruing | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 0 |
Commercial | Construction | Accruing Current Balances | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 909 |
Commercial | Construction | Nonaccrual Loans | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 0 |
Residential | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 613 |
Residential | 30-89 Days Past Due and Still Accruing | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 0 |
Residential | 90+ Days Past Due and Still Accruing | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 0 |
Residential | Accruing Current Balances | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 613 |
Residential | Nonaccrual Loans | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 0 |
Consumer | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 9,611 |
Consumer | 30-89 Days Past Due and Still Accruing | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 727 |
Consumer | 90+ Days Past Due and Still Accruing | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 207 |
Consumer | Accruing Current Balances | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | 8,277 |
Consumer | Nonaccrual Loans | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total | $ 400 |
ALLOWANCE FOR CREDIT LOSSES _12
ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY INFORMATION - Schedule of Troubled Debt Restructurings (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Receivables [Abstract] | |
Performing TDRs | $ 19,737 |
Nonperforming TDRs | 2,006 |
Total TDRs | $ 21,743 |
ALLOWANCE FOR CREDIT LOSSES _13
ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY INFORMATION - Schedule of Types of TDR (Details) - loan | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 | Sep. 30, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan modifications | 66 | 100 |
Commercial | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan modifications | 2 | 3 |
Commercial | Commercial mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan modifications | 0 | 1 |
Commercial | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan modifications | 0 | 1 |
Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan modifications | 0 | 2 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan modifications | 64 | 93 |
Contractual payment reduction and term extension | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan modifications | 50 | 53 |
Contractual payment reduction and term extension | Commercial | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan modifications | 0 | 1 |
Contractual payment reduction and term extension | Commercial | Commercial mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan modifications | 0 | 0 |
Contractual payment reduction and term extension | Commercial | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan modifications | 0 | 0 |
Contractual payment reduction and term extension | Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan modifications | 0 | 1 |
Contractual payment reduction and term extension | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan modifications | 50 | 51 |
Maturity Date Extension | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan modifications | 8 | 34 |
Maturity Date Extension | Commercial | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan modifications | 0 | 0 |
Maturity Date Extension | Commercial | Commercial mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan modifications | 0 | 1 |
Maturity Date Extension | Commercial | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan modifications | 0 | 1 |
Maturity Date Extension | Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan modifications | 0 | 0 |
Maturity Date Extension | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan modifications | 8 | 32 |
Discharged in bankruptcy | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan modifications | 4 | 8 |
Discharged in bankruptcy | Commercial | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan modifications | 0 | 0 |
Discharged in bankruptcy | Commercial | Commercial mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan modifications | 0 | 0 |
Discharged in bankruptcy | Commercial | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan modifications | 0 | 0 |
Discharged in bankruptcy | Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan modifications | 0 | 1 |
Discharged in bankruptcy | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan modifications | 4 | 7 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan modifications | 4 | 5 |
Other | Commercial | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan modifications | 2 | 2 |
Other | Commercial | Commercial mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan modifications | 0 | 0 |
Other | Commercial | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan modifications | 0 | 0 |
Other | Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan modifications | 0 | 0 |
Other | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan modifications | 2 | 3 |
ALLOWANCE FOR CREDIT LOSSES _14
ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY INFORMATION - Schedule of Loans Identified as Troubled Debt Restructurings During Periods Indicated (Details) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 USD ($) loan | Sep. 30, 2022 USD ($) loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total loans identified during the period | $ 5,495,000 | $ 6,122,000 |
Increase in allowance for loan losses | 100,000 | 300,000 |
Troubled debt restructurings charged off | $ 0 | $ 0 |
TRD defaulted | loan | 0 | 0 |
Commercial | Commercial and industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total loans identified during the period | $ 157,000 | $ 185,000 |
Commercial | Commercial mortgages | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total loans identified during the period | 2,390,000 | 2,390,000 |
Commercial | Construction | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total loans identified during the period | 2,000,000 | 2,000,000 |
Residential | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total loans identified during the period | 0 | 138,000 |
Consumer | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total loans identified during the period | $ 948,000 | $ 1,409,000 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) | Sep. 30, 2023 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease term (in years) | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease term (in years) | 22 years |
LEASES - Schedule of Lease Cost
LEASES - Schedule of Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Leases [Abstract] | ||||
Operating lease cost | $ 3,077 | $ 4,900 | $ 12,593 | $ 15,289 |
Sublease income | (37) | (51) | (118) | (222) |
Net lease cost | $ 3,040 | $ 4,849 | $ 12,475 | $ 15,067 |
LEASES - Schedule of Balance Sh
LEASES - Schedule of Balance Sheet Information (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Right-of-use assets | $ 127,020 | $ 138,182 |
Lease liabilities | $ 147,102 | $ 158,269 |
Weighted average remaining lease term (in years) | 12 years 9 months 25 days | 17 years 10 months 28 days |
Weighted average discount rate | 5.18% | 4.25% |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
LEASES - Schedule of Lease Matu
LEASES - Schedule of Lease Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Remaining in 2023 | $ 4,652 | |
2024 | 17,259 | |
2025 | 17,014 | |
2026 | 16,176 | |
2027 | 14,865 | |
After 2027 | 135,220 | |
Total lease payments | 205,186 | |
Less: Interest | (58,084) | |
Present value of lease liabilities | $ 147,102 | $ 158,269 |
LEASES - Schedule of Supplement
LEASES - Schedule of Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Leases [Abstract] | ||||
Operating cash flows from operating leases | $ 4,041 | $ 5,196 | $ 14,235 | $ 15,911 |
Right of use assets obtained in exchange for new operating lease liabilities (non-cash) | $ 0 | $ 0 | $ 0 | $ 13,707 |
LEASES - Schedule of Direct Fin
LEASES - Schedule of Direct Financing Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Leases [Abstract] | |||||
Interest income on lease receivable | $ 13,682 | $ 10,822 | $ 39,200 | $ 30,885 | |
Interest income on deferred fees and costs, net | (1,643) | (925) | (4,479) | (2,422) | |
Total direct financing lease net interest income | 12,039 | $ 9,897 | 34,721 | $ 28,463 | |
Leasing receivables | |||||
Lease receivables | 698,729 | 698,729 | $ 642,369 | ||
Unearned income | (108,629) | (108,629) | (95,683) | ||
Deferred fees and costs | 15,598 | 15,598 | 12,295 | ||
Net investment in direct financing leases | $ 605,698 | $ 605,698 | $ 558,981 | ||
Direct Financing Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest and fees on loans and leases | Interest and fees on loans and leases |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment losses related to goodwill | $ 0 | ||||
Amortization expense on other intangible assets | 11,596,000 | $ 14,505,000 | |||
First Mortgage | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Value of servicing rights | $ 1,800,000 | 1,800,000 | $ 2,100,000 | ||
SBA Loans | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Value of servicing rights | 4,200,000 | 4,200,000 | 4,000,000 | ||
Other Intangible Assets | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization expense on other intangible assets | 3,900,000 | $ 3,900,000 | 11,600,000 | 11,800,000 | |
Impairment of other intangible assets | 0 | 0 | |||
Loan servicing rights | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment loss | $ (200,000) | $ 100,000 | $ (100,000) | $ 200,000 | $ 300,000 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Schedule of Allocation of Goodwill to Our Reportable Operating Segments for Purposes of Goodwill Impairment Testing (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Goodwill beginning balance | $ 883,637 |
Goodwill from business combinations | 2,261 |
Goodwill ending balance | 885,898 |
WSFS Bank | |
Goodwill [Roll Forward] | |
Goodwill beginning balance | 753,586 |
Goodwill from business combinations | 0 |
Goodwill ending balance | 753,586 |
Cash Connect | |
Goodwill [Roll Forward] | |
Goodwill beginning balance | 0 |
Goodwill from business combinations | 0 |
Goodwill ending balance | 0 |
Wealth Management | |
Goodwill [Roll Forward] | |
Goodwill beginning balance | 130,051 |
Goodwill from business combinations | 2,261 |
Goodwill ending balance | $ 132,312 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Accumulated Amortization | $ (71,158) | $ (71,158) | $ (58,655) | ||
Net Intangible Assets | 119,674 | 119,674 | |||
Indefinite-lived Intangible Assets [Line Items] | |||||
Gross Intangible Assets | 193,732 | 193,732 | 187,250 | ||
Accumulated Amortization | (71,158) | (71,158) | (58,655) | ||
Net Intangible Assets | 122,574 | 122,574 | 128,595 | ||
Trade Names | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Indefinite-lived trademark | 2,900 | 2,900 | 2,900 | ||
Core deposits | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Intangible Assets | 104,751 | 104,751 | 104,751 | ||
Accumulated Amortization | (48,180) | (48,180) | (40,443) | ||
Net Intangible Assets | $ 56,571 | $ 56,571 | $ 64,308 | ||
Amortization Period | 10 years | 10 years | 10 years | ||
Indefinite-lived Intangible Assets [Line Items] | |||||
Accumulated Amortization | $ (48,180) | $ (48,180) | $ (40,443) | ||
Customer relationships | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Intangible Assets | 73,880 | 73,880 | 68,281 | ||
Accumulated Amortization | (16,795) | (16,795) | (12,937) | ||
Net Intangible Assets | 57,085 | 57,085 | 55,344 | ||
Indefinite-lived Intangible Assets [Line Items] | |||||
Accumulated Amortization | $ (16,795) | $ (16,795) | $ (12,937) | ||
Customer relationships | Minimum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization Period | 7 years | 7 years | 7 years | ||
Customer relationships | Maximum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization Period | 15 years | 15 years | 15 years | ||
Loan servicing rights | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Intangible Assets | $ 12,201 | $ 12,201 | $ 11,118 | ||
Accumulated Amortization | (6,183) | (6,183) | (5,075) | ||
Net Intangible Assets | 6,018 | 6,018 | 6,043 | ||
Impairment loss | (200) | $ 100 | (100) | $ 200 | 300 |
Indefinite-lived Intangible Assets [Line Items] | |||||
Accumulated Amortization | $ (6,183) | $ (6,183) | $ (5,075) | ||
Loan servicing rights | Minimum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization Period | 10 years | 10 years | 10 years | ||
Loan servicing rights | Maximum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization Period | 25 years | 25 years | 25 years | ||
Non-compete agreements | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross Intangible Assets | $ 200 | ||||
Accumulated Amortization | (200) | ||||
Net Intangible Assets | $ 0 | ||||
Amortization Period | 1 year | ||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Accumulated Amortization | $ (200) |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS - Schedule of Estimated Amortization Expense of Intangibles (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remaining in 2023 | $ 4,239 |
2024 | 16,793 |
2025 | 16,451 |
2026 | 15,775 |
2027 | 15,337 |
Thereafter | 51,079 |
Net Intangible Assets | $ 119,674 |
DEPOSITS (Details)
DEPOSITS (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Noninterest-bearing: | ||
Noninterest demand | $ 4,913,517 | $ 5,739,647 |
Total noninterest-bearing | 4,913,517 | 5,739,647 |
Interest-bearing: | ||
Interest-bearing demand | 3,027,780 | 3,346,682 |
Savings | 1,680,864 | 2,161,858 |
Money market | 4,559,643 | 3,730,778 |
Customer time deposits | 1,715,460 | 1,102,013 |
Brokered deposits | 89,105 | 122,591 |
Total interest-bearing | 11,072,852 | 10,463,922 |
Total deposits | $ 15,986,369 | $ 16,203,569 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Tax Credit Carryforward [Line Items] | |||||
Unrecognized tax benefits | $ 0 | $ 0 | |||
Amortization of low-income housing credit investments reflected as income tax expense | 1,400,000 | $ 1,200,000 | 4,100,000 | $ 3,600,000 | |
Affordable housing tax benefits | 1,400,000 | ||||
Carrying value of investment in affordable housing credits | 64,900,000 | 64,900,000 | $ 69,000,000 | ||
General Business Tax Credit Carryforward | |||||
Tax Credit Carryforward [Line Items] | |||||
Tax credit | $ 3,500,000 | $ 3,500,000 |
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 | Sep. 30, 2023 | Dec. 31, 2022 |
Assets measured at fair value on a recurring basis: | ||
Investment securities available-for-sale | $ 3,691,541 | $ 4,093,060 |
Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis: | ||
Other assets, fair value | 203,106 | 156,993 |
Liabilities measured at fair value on a recurring basis: | ||
Other liabilities | 211,303 | 173,622 |
Assets measured at fair value on a nonrecurring basis: | ||
Total assets measured at fair value | 3,894,647 | 4,250,053 |
Fair Value, Measurements, Nonrecurring | ||
Assets measured at fair value on a nonrecurring basis: | ||
Other real estate owned | 298 | 833 |
Total assets measured at fair value | 58,697 | 69,938 |
Quoted Prices in Active Markets for Identical Asset (Level 1) | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis: | ||
Other assets, fair value | 0 | 0 |
Liabilities measured at fair value on a recurring basis: | ||
Other liabilities | 0 | 0 |
Assets measured at fair value on a nonrecurring basis: | ||
Total assets measured at fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Asset (Level 1) | Fair Value, Measurements, Nonrecurring | ||
Assets measured at fair value on a nonrecurring basis: | ||
Other real estate owned | 0 | 0 |
Total assets measured at fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis: | ||
Other assets, fair value | 203,083 | 156,912 |
Liabilities measured at fair value on a recurring basis: | ||
Other liabilities | 196,821 | 156,520 |
Assets measured at fair value on a nonrecurring basis: | ||
Total assets measured at fair value | 3,894,624 | 4,249,972 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Nonrecurring | ||
Assets measured at fair value on a nonrecurring basis: | ||
Other real estate owned | 0 | 0 |
Total assets measured at fair value | 36,658 | 42,985 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis: | ||
Other assets, fair value | 23 | 81 |
Liabilities measured at fair value on a recurring basis: | ||
Other liabilities | 14,482 | 17,102 |
Assets measured at fair value on a nonrecurring basis: | ||
Total assets measured at fair value | 23 | 81 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Nonrecurring | ||
Assets measured at fair value on a nonrecurring basis: | ||
Other real estate owned | 298 | 833 |
Total assets measured at fair value | 22,039 | 26,953 |
Other investments | Fair Value, Measurements, Nonrecurring | ||
Assets measured at fair value on a nonrecurring basis: | ||
Other investments | 21,741 | 26,120 |
Other investments | Quoted Prices in Active Markets for Identical Asset (Level 1) | Fair Value, Measurements, Nonrecurring | ||
Assets measured at fair value on a nonrecurring basis: | ||
Other investments | 0 | 0 |
Other investments | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Nonrecurring | ||
Assets measured at fair value on a nonrecurring basis: | ||
Other investments | 0 | 0 |
Other investments | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Nonrecurring | ||
Assets measured at fair value on a nonrecurring basis: | ||
Other investments | 21,741 | 26,120 |
Loans held for sale | Fair Value, Measurements, Nonrecurring | ||
Assets measured at fair value on a nonrecurring basis: | ||
Loans held for sale | 36,658 | 42,985 |
Loans held for sale | Quoted Prices in Active Markets for Identical Asset (Level 1) | Fair Value, Measurements, Nonrecurring | ||
Assets measured at fair value on a nonrecurring basis: | ||
Loans held for sale | 0 | 0 |
Loans held for sale | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Nonrecurring | ||
Assets measured at fair value on a nonrecurring basis: | ||
Loans held for sale | 36,658 | 42,985 |
Loans held for sale | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Nonrecurring | ||
Assets measured at fair value on a nonrecurring basis: | ||
Loans held for sale | 0 | 0 |
Collateralized mortgage obligation (CMO) | ||
Assets measured at fair value on a recurring basis: | ||
Investment securities available-for-sale | 454,664 | 506,380 |
Collateralized mortgage obligation (CMO) | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis: | ||
Investment securities available-for-sale | 454,664 | 506,380 |
Collateralized mortgage obligation (CMO) | Quoted Prices in Active Markets for Identical Asset (Level 1) | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis: | ||
Investment securities available-for-sale | 0 | 0 |
Collateralized mortgage obligation (CMO) | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis: | ||
Investment securities available-for-sale | 454,664 | 506,380 |
Collateralized mortgage obligation (CMO) | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis: | ||
Investment securities available-for-sale | 0 | 0 |
Fannie Mae (FNMA) mortgage-backed securities (MBS) | ||
Assets measured at fair value on a recurring basis: | ||
Investment securities available-for-sale | 2,913,412 | 3,250,258 |
Fannie Mae (FNMA) mortgage-backed securities (MBS) | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis: | ||
Investment securities available-for-sale | 2,913,412 | 3,250,258 |
Fannie Mae (FNMA) mortgage-backed securities (MBS) | Quoted Prices in Active Markets for Identical Asset (Level 1) | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis: | ||
Investment securities available-for-sale | 0 | 0 |
Fannie Mae (FNMA) mortgage-backed securities (MBS) | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis: | ||
Investment securities available-for-sale | 2,913,412 | 3,250,258 |
Fannie Mae (FNMA) mortgage-backed securities (MBS) | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis: | ||
Investment securities available-for-sale | 0 | 0 |
Freddie Mac (FHLMC) MBS | ||
Assets measured at fair value on a recurring basis: | ||
Investment securities available-for-sale | 110,719 | 121,999 |
Freddie Mac (FHLMC) MBS | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis: | ||
Investment securities available-for-sale | 110,719 | 121,999 |
Freddie Mac (FHLMC) MBS | Quoted Prices in Active Markets for Identical Asset (Level 1) | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis: | ||
Investment securities available-for-sale | 0 | 0 |
Freddie Mac (FHLMC) MBS | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis: | ||
Investment securities available-for-sale | 110,719 | 121,999 |
Freddie Mac (FHLMC) MBS | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis: | ||
Investment securities available-for-sale | 0 | 0 |
Ginnie Mae (GNMA) MBS | ||
Assets measured at fair value on a recurring basis: | ||
Investment securities available-for-sale | 42,751 | 36,138 |
Ginnie Mae (GNMA) MBS | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis: | ||
Investment securities available-for-sale | 42,751 | 36,138 |
Ginnie Mae (GNMA) MBS | Quoted Prices in Active Markets for Identical Asset (Level 1) | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis: | ||
Investment securities available-for-sale | 0 | 0 |
Ginnie Mae (GNMA) MBS | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis: | ||
Investment securities available-for-sale | 42,751 | 36,138 |
Ginnie Mae (GNMA) MBS | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis: | ||
Investment securities available-for-sale | 0 | 0 |
Government-sponsored enterprises (GSE) agency notes | ||
Assets measured at fair value on a recurring basis: | ||
Investment securities available-for-sale | 169,995 | 178,285 |
Government-sponsored enterprises (GSE) agency notes | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis: | ||
Investment securities available-for-sale | 169,995 | 178,285 |
Government-sponsored enterprises (GSE) agency notes | Quoted Prices in Active Markets for Identical Asset (Level 1) | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis: | ||
Investment securities available-for-sale | 0 | 0 |
Government-sponsored enterprises (GSE) agency notes | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis: | ||
Investment securities available-for-sale | 169,995 | 178,285 |
Government-sponsored enterprises (GSE) agency notes | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Assets measured at fair value on a recurring basis: | ||
Investment securities available-for-sale | $ 0 | $ 0 |
FAIR VALUE DISCLOSURES OF FIN_4
FAIR VALUE DISCLOSURES OF FINANCIAL ASSETS AND LIABILITIES - Narrative (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Derivative [Line Items] | ||
Commitments of lending operations | $ 0 | $ 0 |
Swap Guarantee | ||
Derivative [Line Items] | ||
Aggregate fair value of swaps to customers | $ 7,700,000 | $ 10,400,000 |
FAIR VALUE DISCLOSURES OF FIN_5
FAIR VALUE DISCLOSURES OF FINANCIAL ASSETS AND LIABILITIES - Schedule of Fair Value Measurement Inputs and Valuation Techniques (Details) - Significant Unobservable Inputs (Level 3) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 USD ($) $ / shares | Dec. 31, 2022 USD ($) $ / shares | |
Observed market comparable transactions | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other investments | $ | $ 21,741 | $ 26,120 |
Fair market value of collateral | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other real estate owned | $ | $ 298 | $ 833 |
Fair market value of collateral | Costs to sell | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other real estate owned, measurement input | 0.100 | 0.100 |
Credit Value Adjustment | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other assets, fair value | $ | $ 23 | $ 81 |
Other liabilities, fair value | $ | $ 1 | $ 2 |
Credit Value Adjustment | Measurement Input, CDS Spread | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other assets, measurement input | 0.0110 | 0.0110 |
Other liabilities, measurement input | 0.0001 | 0.0001 |
Credit Value Adjustment | Measurement Input, CDS Spread | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other assets, measurement input | 0.0360 | 0.0250 |
Other liabilities, measurement input | 0.0250 | 0.0250 |
Credit Value Adjustment | Measurement Input, CDS Spread | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other assets, measurement input | 0.0196 | 0.0205 |
Other liabilities, measurement input | 0.0078 | 0.0158 |
Credit Value Adjustment | Measurement Input, Loss Given Default | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other assets, measurement input | 0.30 | 0.30 |
Other liabilities, measurement input | 0.30 | 0.30 |
Credit Value Adjustment | Measurement Input, Loss Given Default | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other assets, measurement input | 0 | 0 |
Credit Value Adjustment | Measurement Input, Loss Given Default | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other assets, measurement input | 0.30 | 0.30 |
Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other liabilities, fair value | $ | $ 14,481 | $ 17,100 |
Discounted cash flow | Timing of Visa litigation resolution | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other liabilities, measurement input, term | 1 year | 1 year |
Discounted cash flow | Timing of Visa litigation resolution | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other liabilities, measurement input, term | 5 years | 5 years 9 months |
Discounted cash flow | Timing of Visa litigation resolution | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other liabilities, measurement input, term | 3 years 2 months 12 days | 3 years 7 months 9 days |
FAIR VALUE DISCLOSURES OF FIN_6
FAIR VALUE DISCLOSURES OF FINANCIAL ASSETS AND LIABILITIES - Schedule of Book Value and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financial assets: | ||
Investment securities available-for-sale | $ 3,691,541 | $ 4,093,060 |
Stock in FHLB of Pittsburgh | 12,199 | 24,116 |
Accrued interest receivable | 81,909 | 74,448 |
Financial liabilities: | ||
Deposits | 15,986,369 | 16,203,569 |
Accrued interest payable | 42,481 | 5,174 |
Book Value | Level 1 | ||
Financial assets: | ||
Cash, cash equivalents, and restricted cash | 611,480 | 837,258 |
Book Value | Level 2 | ||
Financial assets: | ||
Investment securities available-for-sale | 3,691,541 | 4,093,060 |
Investment securities held-to-maturity, net | 1,068,871 | 1,111,619 |
Loans, held for sale | 36,658 | 42,985 |
Stock in FHLB of Pittsburgh | 12,199 | 24,116 |
Accrued interest receivable | 81,909 | 74,448 |
Financial liabilities: | ||
Deposits | 15,986,369 | 16,203,569 |
Borrowed funds | 917,833 | 726,894 |
Accrued interest payable | 42,481 | 5,174 |
Book Value | Level 3 | ||
Financial assets: | ||
Other investments | 21,741 | 26,120 |
Loans and leases, net | 12,502,404 | 11,759,992 |
Financial liabilities: | ||
Standby letters of credit | 663 | 739 |
Book Value | Levels 2, 3 | ||
Financial assets: | ||
Other assets | 203,106 | 156,993 |
Financial liabilities: | ||
Other liabilities | 211,303 | 173,622 |
Fair Value | Level 1 | ||
Financial assets: | ||
Cash, cash equivalents, and restricted cash | 611,480 | 837,258 |
Fair Value | Level 2 | ||
Financial assets: | ||
Investment securities available-for-sale | 3,691,541 | 4,093,060 |
Investment securities held-to-maturity, net | 927,680 | 1,040,104 |
Loans, held for sale | 36,658 | 42,985 |
Stock in FHLB of Pittsburgh | 12,199 | 24,116 |
Accrued interest receivable | 81,909 | 74,448 |
Financial liabilities: | ||
Deposits | 15,951,775 | 16,156,124 |
Borrowed funds | 917,053 | 709,014 |
Accrued interest payable | 42,481 | 5,174 |
Fair Value | Level 3 | ||
Financial assets: | ||
Other investments | 21,741 | 26,120 |
Loans and leases, net | 12,454,772 | 11,567,888 |
Financial liabilities: | ||
Standby letters of credit | 663 | 739 |
Fair Value | Levels 2, 3 | ||
Financial assets: | ||
Other assets | 203,106 | 156,993 |
Financial liabilities: | ||
Other liabilities | $ 211,303 | $ 173,622 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Fair Values of Derivative Instruments (Details) $ in Thousands | Sep. 30, 2023 USD ($) instrument | Dec. 31, 2022 USD ($) |
Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional | $ 500,000 | |
Derivative asset | 5,508 | |
Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional | 5,381,768 | $ 3,921,032 |
Total derivatives | $ (8,197) | (16,629) |
Interest rate products | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Count | instrument | 6 | |
Notional | $ 500,000 | |
Derivative asset | 5,508 | |
Interest rate products | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Derivative asset | 196,508 | 156,414 |
Derivative liability | (196,508) | (156,414) |
Interest rate products | Derivatives not designated as hedging instruments | Other assets | ||
Derivative [Line Items] | ||
Notional | 2,226,251 | 1,794,678 |
Interest rate products | Derivatives not designated as hedging instruments | Other liabilities | ||
Derivative [Line Items] | ||
Notional | 2,226,251 | 1,794,678 |
Interest rate lock commitments with customers | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Derivative asset | 498 | 385 |
Derivative liability | (20) | (7) |
Interest rate lock commitments with customers | Derivatives not designated as hedging instruments | Other assets | ||
Derivative [Line Items] | ||
Notional | 32,747 | 24,673 |
Interest rate lock commitments with customers | Derivatives not designated as hedging instruments | Other liabilities | ||
Derivative [Line Items] | ||
Notional | 3,886 | 1,179 |
Forward sale commitments | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Derivative asset | 203 | 75 |
Derivative liability | (32) | (54) |
Forward sale commitments | Derivatives not designated as hedging instruments | Other assets | ||
Derivative [Line Items] | ||
Notional | 21,500 | 9,072 |
Forward sale commitments | Derivatives not designated as hedging instruments | Other liabilities | ||
Derivative [Line Items] | ||
Notional | 13,907 | 20,719 |
FX forwards | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Derivative asset | 366 | 38 |
Derivative liability | (261) | (45) |
FX forwards | Derivatives not designated as hedging instruments | Other assets | ||
Derivative [Line Items] | ||
Notional | 16,687 | 4,177 |
FX forwards | Derivatives not designated as hedging instruments | Other liabilities | ||
Derivative [Line Items] | ||
Notional | 14,793 | 3,052 |
Risk participation agreements sold | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Derivative liability | (1) | (2) |
Risk participation agreements sold | Derivatives not designated as hedging instruments | Other liabilities | ||
Derivative [Line Items] | ||
Notional | 97,049 | 68,459 |
Risk participation agreements purchased | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Derivative asset | 23 | 81 |
Risk participation agreements purchased | Derivatives not designated as hedging instruments | Other assets | ||
Derivative [Line Items] | ||
Notional | 115,520 | 87,168 |
Financial derivatives related to sales of certain Visa Class B shares | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Derivative liability | (14,481) | (17,100) |
Financial derivatives related to sales of certain Visa Class B shares | Derivatives not designated as hedging instruments | Other liabilities | ||
Derivative [Line Items] | ||
Notional | $ 113,177 | $ 113,177 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Effect of Derivative Instruments on the Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Amount of (Loss) Gain Recognized in OCI on Derivative (Effective Portion) | $ (1,608) | $ 0 | $ (2,752) | $ 0 |
Derivatives not designated as hedging instruments | ||||
Derivative [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income | 3,631 | 792 | 7,969 | 8,767 |
Interest rate products | Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Amount of (Loss) Gain Recognized in OCI on Derivative (Effective Portion) | (1,608) | 0 | (2,752) | 0 |
Interest rate products | Derivatives not designated as hedging instruments | ||||
Derivative [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income | 3,427 | 674 | 7,397 | 5,599 |
Interest rate lock commitments with customers | Derivatives not designated as hedging instruments | ||||
Derivative [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income | (171) | (1,032) | 116 | (1,856) |
Forward sale commitments | Derivatives not designated as hedging instruments | ||||
Derivative [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income | 595 | 1,097 | 660 | 5,120 |
FX forwards | Derivatives not designated as hedging instruments | ||||
Derivative [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income | 97 | 54 | 126 | 95 |
Risk participation agreements | Derivatives not designated as hedging instruments | ||||
Derivative [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income | $ (317) | $ (1) | $ (330) | $ (191) |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 USD ($) instrument institution | Sep. 30, 2023 USD ($) instrument institution | Dec. 31, 2022 USD ($) instrument | Dec. 31, 2020 USD ($) instrument | |
Derivative [Line Items] | ||||
Interest rate cash flow hedge expense reclassified to interest income | $ 400 | $ 600 | ||
Number of variable-rate to fixed-rate swap transactions | instrument | 193 | 193 | 209 | |
Minimum | ||||
Derivative [Line Items] | ||||
Remaining maturity period | 1 year | 1 year | ||
Maximum | ||||
Derivative [Line Items] | ||||
Remaining maturity period | 12 years | 12 years | ||
Interest rate swap | ||||
Derivative [Line Items] | ||||
Notional amount | $ 800,000 | $ 800,000 | $ 800,000 | |
Number of instruments terminated | instrument | 3 | |||
Remaining net gain | $ (100) | $ (100) | ||
Number of variable-rate to fixed-rate swap transactions | instrument | 0 | 0 | 0 | |
Swap Guarantee | ||||
Derivative [Line Items] | ||||
Number of financial institutions | institution | 1 | 1 | ||
Aggregate fair value of swaps to customers | $ 7,700 | $ 7,700 | $ 10,400 | |
Cash | ||||
Derivative [Line Items] | ||||
Collateral value against obligations | 5,000 | 5,000 | ||
Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Notional amount | $ 500,000 | $ 500,000 | ||
Designated as Hedging Instrument | Interest rate products | ||||
Derivative [Line Items] | ||||
Count | instrument | 6 | 6 | ||
Purchase of derivatives | $ 9,700 | |||
Notional amount | $ 500,000 | $ 500,000 | ||
Designated as Hedging Instrument | Interest rate swap | ||||
Derivative [Line Items] | ||||
Termination value of derivatives | $ 1,300 |
SEGMENT INFORMATION - Narrative
SEGMENT INFORMATION - Narrative (Details) | 9 Months Ended |
Sep. 30, 2023 segment | |
Segment Reporting [Abstract] | |
Number of segments | 3 |
SEGMENT INFORMATION - Schedule
SEGMENT INFORMATION - Schedule of Segment Results (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Interest income | $ 251,139 | $ 186,565 | $ 719,291 | $ 490,722 |
Noninterest income | 72,668 | 62,651 | 202,666 | 195,254 |
Interest expense | 68,537 | 9,734 | 172,315 | 21,718 |
Noninterest expenses | 139,689 | 132,917 | 413,987 | 441,423 |
Provision for (recovery of) credit losses | 18,414 | 7,454 | 63,255 | 34,693 |
Income before taxes | 97,167 | 99,111 | 272,400 | 188,142 |
Income tax provision | 22,904 | 25,767 | 66,880 | 49,929 |
Consolidated net income | 74,263 | 73,344 | 205,520 | 138,213 |
Net income (loss) attributable to noncontrolling interest | 97 | (38) | 272 | 287 |
Net income attributable to WSFS | 74,166 | 73,382 | 205,248 | 137,926 |
Capital expenditures for the period ended | 2,953 | 7,665 | ||
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, Total | 366,444 | 275,419 | 1,039,127 | 744,601 |
Total expenses | 269,277 | 176,308 | 766,727 | 556,459 |
Income before taxes | 97,167 | 99,111 | 272,400 | 188,142 |
Income tax provision | 22,904 | 25,767 | 66,880 | 49,929 |
Consolidated net income | 74,263 | 73,344 | 205,520 | 138,213 |
Net income (loss) attributable to noncontrolling interest | 97 | (38) | 272 | 287 |
Net income attributable to WSFS | 74,166 | 73,382 | 205,248 | 137,926 |
Capital expenditures for the period ended | 1,141 | 3,229 | 2,953 | 7,665 |
Operating Segments | External Customers | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | 251,139 | 186,565 | 719,291 | 490,722 |
Noninterest income | 72,668 | 62,651 | 202,666 | 195,254 |
Revenues, Total | 323,807 | 249,216 | 921,957 | 685,976 |
Interest expense | 68,537 | 9,734 | 172,315 | 21,718 |
Noninterest expenses | 139,689 | 132,917 | 413,987 | 441,423 |
Provision for (recovery of) credit losses | 18,414 | 7,454 | 63,255 | 34,693 |
Total expenses | 226,640 | 150,105 | 649,557 | 497,834 |
Inter-Segment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | 34,564 | 18,644 | 93,781 | 36,733 |
Noninterest income | 8,073 | 7,559 | 23,389 | 21,892 |
Revenues, Total | 42,637 | 26,203 | 117,170 | 58,625 |
Interest expense | 34,564 | 18,644 | 93,781 | 36,733 |
Noninterest expenses | 8,073 | 7,559 | 23,389 | 21,892 |
Total expenses | 42,637 | 26,203 | 117,170 | 58,625 |
WSFS Bank | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, Total | 278,488 | 212,168 | 791,402 | 573,339 |
Total expenses | 212,372 | 135,930 | 605,510 | 447,873 |
Income before taxes | 66,116 | 76,238 | 185,892 | 125,466 |
Capital expenditures for the period ended | 1,131 | 3,213 | 2,943 | 7,649 |
WSFS Bank | Operating Segments | External Customers | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | 245,520 | 183,107 | 703,210 | 481,683 |
Noninterest income | 18,371 | 17,585 | 46,610 | 63,833 |
Revenues, Total | 263,891 | 200,692 | 749,820 | 545,516 |
Interest expense | 60,133 | 8,923 | 152,582 | 20,475 |
Noninterest expenses | 105,655 | 104,817 | 314,751 | 361,949 |
Provision for (recovery of) credit losses | 18,544 | 7,463 | 62,589 | 34,647 |
Total expenses | 184,332 | 121,203 | 529,922 | 417,071 |
WSFS Bank | Inter-Segment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | 7,213 | 4,570 | 20,037 | 7,720 |
Noninterest income | 7,384 | 6,906 | 21,545 | 20,103 |
Revenues, Total | 14,597 | 11,476 | 41,582 | 27,823 |
Interest expense | 27,351 | 14,074 | 73,744 | 29,013 |
Noninterest expenses | 689 | 653 | 1,844 | 1,789 |
Total expenses | 28,040 | 14,727 | 75,588 | 30,802 |
Cash Connect | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, Total | 22,070 | 16,263 | 61,915 | 39,868 |
Total expenses | 20,983 | 14,245 | 59,261 | 33,715 |
Income before taxes | 1,087 | 2,018 | 2,654 | 6,153 |
Capital expenditures for the period ended | 0 | 16 | 0 | 16 |
Cash Connect | Operating Segments | External Customers | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | 0 | 0 | 0 | 0 |
Noninterest income | 21,231 | 15,416 | 59,402 | 37,500 |
Revenues, Total | 21,231 | 15,416 | 59,402 | 37,500 |
Interest expense | 0 | 0 | 0 | 0 |
Noninterest expenses | 15,524 | 9,646 | 43,562 | 25,383 |
Provision for (recovery of) credit losses | 0 | 0 | 0 | 0 |
Total expenses | 15,524 | 9,646 | 43,562 | 25,383 |
Cash Connect | Inter-Segment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | 340 | 416 | 1,058 | 1,148 |
Noninterest income | 499 | 431 | 1,455 | 1,220 |
Revenues, Total | 839 | 847 | 2,513 | 2,368 |
Interest expense | 4,068 | 3,414 | 11,478 | 4,896 |
Noninterest expenses | 1,391 | 1,185 | 4,221 | 3,436 |
Total expenses | 5,459 | 4,599 | 15,699 | 8,332 |
Wealth Management | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, Total | 65,886 | 46,988 | 185,810 | 131,394 |
Total expenses | 35,922 | 26,133 | 101,956 | 74,871 |
Income before taxes | 29,964 | 20,855 | 83,854 | 56,523 |
Capital expenditures for the period ended | 10 | 0 | 10 | 0 |
Wealth Management | Operating Segments | External Customers | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | 5,619 | 3,458 | 16,081 | 9,039 |
Noninterest income | 33,066 | 29,650 | 96,654 | 93,921 |
Revenues, Total | 38,685 | 33,108 | 112,735 | 102,960 |
Interest expense | 8,404 | 811 | 19,733 | 1,243 |
Noninterest expenses | 18,510 | 18,454 | 55,674 | 54,091 |
Provision for (recovery of) credit losses | (130) | (9) | 666 | 46 |
Total expenses | 26,784 | 19,256 | 76,073 | 55,380 |
Wealth Management | Inter-Segment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | 27,011 | 13,658 | 72,686 | 27,865 |
Noninterest income | 190 | 222 | 389 | 569 |
Revenues, Total | 27,201 | 13,880 | 73,075 | 28,434 |
Interest expense | 3,145 | 1,156 | 8,559 | 2,824 |
Noninterest expenses | 5,993 | 5,721 | 17,324 | 16,667 |
Total expenses | $ 9,138 | $ 6,877 | $ 25,883 | $ 19,491 |
SEGMENT INFORMATION - Schedul_2
SEGMENT INFORMATION - Schedule of Segment Information and Statement of Financial Condition (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | $ 611,480 | $ 837,258 | $ 1,031,391 | $ 1,532,939 |
Goodwill | 885,898 | 883,637 | ||
Other segment assets | 18,543,614 | 18,193,860 | ||
Total assets | 20,040,992 | 19,914,755 | ||
WSFS Bank | ||||
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | 241,531 | 317,022 | ||
Goodwill | 753,586 | 753,586 | ||
Other segment assets | 18,132,659 | 17,824,946 | ||
Total assets | 19,127,776 | 18,895,554 | ||
Cash Connect | ||||
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | 327,417 | 476,850 | ||
Goodwill | 0 | 0 | ||
Other segment assets | 11,662 | 10,429 | ||
Total assets | 339,079 | 487,279 | ||
Wealth Management | ||||
Segment Reporting Information [Line Items] | ||||
Cash and cash equivalents | 42,532 | 43,386 | ||
Goodwill | 132,312 | 130,051 | ||
Other segment assets | 399,293 | 358,485 | ||
Total assets | $ 574,137 | $ 531,922 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) loan | Sep. 30, 2022 USD ($) loan | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Guarantor Obligations [Line Items] | ||||||||
Provision for (recovery of) credit losses | $ 18,414,000 | $ 7,454,000 | $ 63,255,000 | $ 34,693,000 | ||||
Allowance for credit losses | 175,988,000 | 146,195,000 | 175,988,000 | 146,195,000 | $ 171,869,000 | $ 151,861,000 | $ 141,970,000 | $ 94,507,000 |
Unfunded Lending Commitment | ||||||||
Guarantor Obligations [Line Items] | ||||||||
Provision for (recovery of) credit losses | 100,000 | $ 700,000 | 200,000 | $ 600,000 | ||||
Allowance for credit losses | $ 12,100,000 | 12,100,000 | $ 11,900,000 | |||||
Secondary Market Loan Sales | ||||||||
Guarantor Obligations [Line Items] | ||||||||
Provision for (recovery of) credit losses | $ 0 | |||||||
Number of loans repurchased | loan | 1 | 2 | ||||||
Loans repurchase amount | $ 800,000 | $ 800,000 |
CHANGE IN ACCUMULATED OTHER C_3
CHANGE IN ACCUMULATED OTHER COMPREHENSIVE LOSS - Schedule of Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 2,205,113 | |||
Other comprehensive (loss) income | $ (128,942) | $ (202,500) | (117,542) | $ (683,420) |
Less: Amounts reclassified from accumulated other comprehensive loss | 4,290 | 5,899 | 12,675 | 5,709 |
Net current-period other comprehensive (loss) income | (124,652) | (196,601) | (104,867) | (677,711) |
Ending balance | 2,242,795 | 2,242,795 | ||
Amortization of unrealized losses on securities reclassified to held-to-maturity, tax expense | (1,379) | (1,884) | (4,080) | 35,955 |
Fannie Mae (FNMA) mortgage-backed securities (MBS) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Amortization of unrealized losses on securities reclassified to held-to-maturity, tax expense | 119,800 | |||
Total | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (656,059) | (518,878) | (675,844) | (37,768) |
Ending balance | (780,711) | (715,479) | (780,711) | (715,479) |
Net change in investment securities available-for-sale | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (550,890) | (395,213) | (563,533) | (33,873) |
Other comprehensive (loss) income | (127,523) | (202,520) | (114,880) | (563,860) |
Less: Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | 0 |
Net current-period other comprehensive (loss) income | (127,523) | (202,520) | (114,880) | (563,860) |
Ending balance | (678,413) | (597,733) | (678,413) | (597,733) |
Net change in investment securities held-to-maturity | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (99,945) | (119,649) | (108,503) | 175 |
Other comprehensive (loss) income | 0 | (1) | 0 | (119,769) |
Less: Amounts reclassified from accumulated other comprehensive loss | 4,366 | 5,967 | 12,924 | 5,911 |
Net current-period other comprehensive (loss) income | 4,366 | 5,966 | 12,924 | (113,858) |
Ending balance | (95,579) | (113,683) | (95,579) | (113,683) |
Net change in defined benefit plan | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (4,571) | (4,746) | (4,482) | (4,691) |
Other comprehensive (loss) income | (3) | (4) | 2 | (4) |
Less: Amounts reclassified from accumulated other comprehensive loss | (48) | (27) | (142) | (82) |
Net current-period other comprehensive (loss) income | (51) | (31) | (140) | (86) |
Ending balance | (4,622) | (4,777) | (4,622) | (4,777) |
Net change in fair value of derivatives used for cash flow hedges | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (1,115) | 189 | 108 | 268 |
Other comprehensive (loss) income | (1,608) | 0 | (2,752) | 0 |
Less: Amounts reclassified from accumulated other comprehensive loss | (28) | (41) | (107) | (120) |
Net current-period other comprehensive (loss) income | (1,636) | (41) | (2,859) | (120) |
Ending balance | (2,751) | 148 | (2,751) | 148 |
Net change in equity method investments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 462 | 541 | 566 | 353 |
Other comprehensive (loss) income | 192 | 25 | 88 | 213 |
Less: Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | 0 |
Net current-period other comprehensive (loss) income | 192 | 25 | 88 | 213 |
Ending balance | $ 654 | $ 566 | $ 654 | $ 566 |
CHANGE IN ACCUMULATED OTHER C_4
CHANGE IN ACCUMULATED OTHER COMPREHENSIVE LOSS - Schedule of Components of Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income taxes | $ (22,904) | $ (25,767) | $ (66,880) | $ (49,929) |
Salaries, benefits and other compensation | (74,453) | (72,294) | (219,669) | (211,413) |
Income before taxes | 97,167 | 99,111 | 272,400 | 188,142 |
Net income attributable to WSFS | 74,166 | 73,382 | 205,248 | 137,926 |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net income attributable to WSFS | 4,290 | 5,899 | 12,675 | 5,709 |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Net change in investment securities available-for-sale | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amortization of net unrealized losses to income during the period | 5,745 | 7,851 | 17,005 | 7,777 |
Income taxes | (1,379) | (1,884) | (4,081) | (1,866) |
Net income attributable to WSFS | 4,366 | 5,967 | 12,924 | 5,911 |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Prior service credits | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Salaries, benefits and other compensation | (19) | (19) | 57 | 57 |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Actuarial gains | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Salaries, benefits and other compensation | (44) | (17) | (130) | (51) |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Amortization of defined benefit pension plan-related items: | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income taxes | 15 | 9 | 45 | 26 |
Income before taxes | (63) | (36) | (187) | (108) |
Net income attributable to WSFS | (48) | (27) | (142) | (82) |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Net unrealized gains on terminated cash flow hedges: | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amortization of net unrealized losses to income during the period | (37) | (54) | (141) | (158) |
Income taxes | 9 | 13 | 34 | 38 |
Net income attributable to WSFS | $ (28) | $ (41) | $ (107) | $ (120) |
LEGAL AND OTHER PROCEEDINGS (De
LEGAL AND OTHER PROCEEDINGS (Details) | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Additions to other significant pending legal or other proceedings | $ 0 |