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The Bancorp Hits 52-Week Low Following Violation Investigations

By  +Follow June 11, 2014 3:32PM
Tickers Mentioned:

The Bancorp, Inc. (TBBK) plummeted dramatically as much as 37 percent on June 11, dropping from the day prior's closing price of $16.20 per share to as low as $10.20 per share.

The plunge was driven by an investor sell-off in response to subsidiary The Bancorp Bank's responsed to FDIC allegations of impropriety. In their response, the bank neither admitted nor denied any charges of unsound banking practices or violations of law related to the Bank Secrecy Act Compliance Program. Simultaneously, they faced shareholder lawsuits from three separate firms.

Wohl & Fruchter LLP, Law Offices of Howard G. Smith and Pomerantz Law Firm all announced that they will look into investigation of possible violations of federal securities laws by officers and directors of The Bancorp, Inc. 

Bancorp Responds to FDIC Accusations

The FDIC order went into effect on June 5, requiring the Bank to take affirmative actions to comply with its BSA. According to the order, the Bancorp Bank now is not eligible to sign and board new Independent Sales Organizations, issue non-profit related reloadable prepaid card programs, or engage in Originating Automated Clearing House transactions for new merchant-related payments.

To address the requirements of the order, the Bank has appointed a new qualified BSA and Office of Foreign Assets Control, increased staffs of BSA Compliance program, strengthened staff training, improved bank transaction security, and also planned to take an independent testing program to reach the BSA standards. Increasing expenses on these movements are expected, but analysts said it should be covered by long-term growth in the various lines of business.

Troubles Push Bancorp to New Low

The Bancorp Bank's movement pushed its parent company, Wilmington, DE-based Bancorp, Inc. to hit a new low for 2014. The company had previously hit a one year low of $13.80 per share, compared to a one year high of $20.05. In 2014, the company has gone tumbled several times. Its stock sank 15.1 percent to $15.80 per share after the company posted lower-than-expected earnings and revenue in Q1 report on April 24. 

According to that Q1 report, the company had $0.01 per share EPS in the first quarter, or net income of $ 28,000, compared to $0.02 EPS per share, or $7.4 million net income in the year-ago period.  The result missed Thomson Reuters estimate  $0.28 a share by $0.27. After the report, its stock price remained at $14.87-$16.20 range, until its subsidiary's move brings a 52-week new low on Wednesday, June 11.   

The company seems to mix strength and weaknesses. But the stock could be low for a while due to its subsidiary's move, based on the already continuous decline in earnings per share. 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.

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Results for TBBK
18 Sep 14 06:16:41
$TBBK watchn for 10.06 break , xing the 50ma http://t.co/GB5E4okuV8
17 Sep 14 17:34:11
http://t.co/jYcEVtZYAh chartguy89: Stock Charts: TBBK 9.80 Stock Charts $TBBK The Bancorp Inc. http://t.co/z6QFqmko67
17 Sep 14 17:30:56
TBBK 9.80 Stock Charts $TBBK The Bancorp Inc. (NASDAQ) Last Updated: 09/17/2014 19:31:02 TBBK Stock Chart - 1 http://t.co/7df0Cm23o7
17 Sep 14 11:33:52
@zerosum24 $TBBK has a nice look
Jennifer Bea
16 Sep 14 11:11:57
RT @classactionlaw: The #Bancorp, Inc. $TBBK Investors: 9-16-14 Lead Plaintiff Class-Action Deadline http://t.co/WomdXaU1NG
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Class Actions News
13 Sep 14 13:07:03
These cos have lead plaintiff deadlines in Sept. Are your losses covered? $WWE $GALT $PWE $EDAP $LLL $DWA $TBBK http://t.co/QZlVRywYx9
12 Sep 14 19:05:02
BANCORP : 96 HOUR DEADLINE ALERT: Approximately 96 Hours Remain; Former Louisiana Attorney General and Kahn... http://t.co/cxPZS7f1Bz $TBBK
12 Sep 14 13:00:02
Bancorp : SHAREHOLDER ALERT: Pomerantz Law Firm Announces the Filing of a Class Action Against The Bancorp,... http://t.co/94PT9onQ5a $TBBK
BNK Invest
12 Sep 14 10:02:06
Video: Friday's ETF Movers: $KRE $GDXJ $TBBK $WIBC $PRU.TO $SBB.TO #stocks http://t.co/8HmePmsrZU
12 Sep 14 09:45:03
Friday's ETF Movers: KRE, GDXJ http://t.co/7WsoczPdjK $TBBK $WIBC $SBB
11 Sep 14 16:03:19
$TBBK chart https://t.co/fILTVTJqH7 via http://t.co/gH6btxpodo
11 Sep 14 14:27:38
The Bancorp Inc (TBBK) Jumps 6.60% on September 11 $TBBK http://t.co/tY7SqNoM5s
By  +Follow June 11, 2014 3:32PM



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