WSFS Financial in Wilmington, Del., reported slightly higher earnings despite an issue with a former client.
The $20.8 billion-asset company said in a press release that its fourth-quarter net income rose by 0.5% from a year earlier, to $64.2 million.
WSFS said that it terminated a relationship with a long-standing Cash Connect customer due to “negative events in the client’s overall business portfolio.” As a result, Cash Connect lost $3.4 million, including charges to $2.8 million in uncollectible fees and $1.9 million in noninterest expense.
Cash Connect provides ATM vault cash, smart safe, and cash logistics services in the United States.
“Our … results included the impact of an adverse event related to a Cash Connect client that led to our termination of this relationship,” Rodger Levenson, the company’s chairman, president and CEO, said in the release. “While disappointing, the actions of our team minimized our exposure, a portion of which we expect to recover through insurance and other avenues.”