WSFS FINANCIAL CORPWSFS
WSFS FINANCIAL CORP Goodwill & Intangibles Disclosure
10. GOODWILL AND INTANGIBLE ASSETS
In accordance with ASC 805, Business Combinations (ASC 805) and ASC 350, Intangibles - Goodwill and Other (ASC 350), all assets acquired and liabilities assumed in purchase acquisitions, including goodwill, indefinite-lived intangibles and other intangibles are recorded at fair value 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. 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 year ended December 31, 2025, management determined, based on its qualitative assessment, that it is not more likely than not that the fair values of our reporting units are less than their carrying values. No goodwill impairment existed during the year ended December 31, 2025.
The following table shows the allocation of goodwill to the reportable operating segments for purposes of goodwill impairment testing:
(Dollars in thousands) | WSFS Bank | Wealth Management | Consolidated Company | ||||||||||||||
| December 31, 2023 | $ | 753,586 | $ | 132,312 | $ | 885,898 | |||||||||||
| Goodwill adjustments | — | — | — | ||||||||||||||
| December 31, 2024 | 753,586 | 132,312 | 885,898 | ||||||||||||||
Goodwill adjustments(1) | — | (674) | (674) | ||||||||||||||
| December 31, 2025 | $ | 753,586 | $ | 131,638 | $ | 885,224 | |||||||||||
(1)During the second quarter of 2025, the Company completed the sale of the WSFS Wealth Management, LLC (dba Powdermill Financial Solutions) business.
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 Intangible Assets | Accumulated Amortization | Net Intangible Assets | Amortization Period | |||||||||||||||||||
| December 31, 2025 | |||||||||||||||||||||||
| Core deposits | $ | 101,511 | $ | (67,845) | $ | 33,666 | 10 years | ||||||||||||||||
| Client relationships | 68,270 | (24,620) | 43,650 | 7-15 years | |||||||||||||||||||
| Tradename | 2,900 | — | 2,900 | indefinite | |||||||||||||||||||
Loan servicing rights(1) | 11,527 | (7,064) | 4,463 | 10-25 years | |||||||||||||||||||
| Total intangible assets | $ | 184,208 | $ | (99,529) | $ | 84,679 | |||||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||
| Core deposits | $ | 104,751 | $ | (60,999) | $ | 43,752 | 10 years | ||||||||||||||||
| Client relationships | 73,880 | (23,588) | 50,292 | 7-15 years | |||||||||||||||||||
| Tradename | 2,900 | — | 2,900 | indefinite | |||||||||||||||||||
Loan servicing rights(2) | 11,220 | (5,901) | 5,319 | 10-25 years | |||||||||||||||||||
| Total intangible assets | $ | 192,751 | $ | (90,488) | $ | 102,263 | |||||||||||||||||
(1)Gross asset includes valuation allowance for impairment losses of $0.4 million for the year ended December 31, 2025.
(2)Gross asset includes valuation allowance for impairment losses of $0.1 million for the year ended December 31, 2024.
The Company recognized amortization expense on other intangible assets of $15.3 million, $15.7 million and $15.5 million for the years ended December 31, 2025, 2024 and 2023, respectively.
The following presents the estimated amortization expense of intangibles:
| (Dollars in thousands) | Amortization of Intangibles | ||||
| 2026 | $ | 15,628 | |||
| 2027 | 15,103 | ||||
| 2028 | 14,418 | ||||
| 2029 | 7,173 | ||||
| 2030 | 5,624 | ||||
| Thereafter | 23,833 | ||||
| Total | $ | 81,779 | |||
Servicing Assets
The value of the Company's mortgage servicing rights was $1.1 million and $1.3 million at December 31, 2025 and 2024, respectively, and the value of its SBA loan servicing rights was $3.4 million and $4.0 million at December 31, 2025 and 2024, respectively. Changes in the value of these servicing rights resulted in of $0.3 million during 2025 and a reversal of impairment losses of $0.6 million during 2024. 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 Consolidated Statements of Income and revenues from the Company's SBA loan servicing rights are included in Loan and lease fee income, in the Consolidated Statements of Income.
Besides the impairment on loan servicing rights noted above, there was no impairment of other intangible assets as of December 31, 2025 or 2024.Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 2, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Mar 1, 2018 | |
| 2016 | Mar 1, 2017 | |
| 2015 | Feb 29, 2016 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.