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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
31 Oct 14 20:00:04
Price Advances: $TSRA $LYV $MDVN $MMYT $SEM $EMN $ONE $AVIV $FLT $TNAV $MTZ $SGMS $EHTH $AFFX $TBBK http://t.co/XQITF0lRKD #markets #trader
31 Oct 14 08:00:04
Price Advances: $AVIV $FLT $TNAV $MTZ $SGMS $EHTH $AFFX $TBBK $GMED $AFOP $UVE $FSL $EXPE $MHK $MCHP http://t.co/Vv2VEn80mr #investors #dow
Mark Palmer
31 Oct 14 06:54:24
The Bancorp Discontinues Commercial Lending Operations, Puts Loan Portfolio Up for Sale, Takes 3Q14 Charge http://t.co/JJNOvtWZRj $tbbk
31 Oct 14 03:10:17
BANCORP : Results of Operations and Financial Condition, Financial Statements and Exhibits (form 8-K) http://t.co/owq8hByMOB $TBBK
Stocks News&Markets
31 Oct 14 03:07:28
$TBBK - Current Report Filing (8-k) http://t.co/6XpnJd56Lw
31 Oct 14 03:07:27
$TBBK - Current Report Filing (8-k) http://t.co/Uzf9uI0REF
31 Oct 14 03:07:00
$TBBK Bancorp, Inc. Document: 8-K From our Stock News Alerts App
Media Sentiment
30 Oct 14 15:19:07
$TBBK received a new alert. Find out why at http://t.co/5udYd0Ofs6 #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 707
30 Oct 14 15:18:41
Bancorp beats by $0.13, beats on revenue http://t.co/vx64w4Sr3A $TBBK
Stocks News&Markets
30 Oct 14 15:02:14
$TBBK - The Bancorp, Inc. Reports Third Quarter 2014 Financial Results http://t.co/vMzwXQ2Do3
BV Financials
30 Oct 14 15:00:09
$TBBK The Bancorp, Inc. Reports Third Quarter 2014 Financial Results.. http://t.co/Y9zasXm4S9
30 Oct 14 09:18:44
8 Online Banks That Let You Skip the Fees, Enjoy the Interest http://t.co/QuBdTs5DjY via @daily_finance $SCHW $COF $TBBK
29 Oct 14 15:30:02
National Australia Bank planning UK exit, FY net drops http://t.co/ocyDPfZiZf $NAB $TBBK $ABLP $TBHS $EPSO $ARM
29 Oct 14 07:00:05
Gap Ups: $ARMH $ETN $STO $IACI $AKAM $SSNC $AHL $DM $MTU $SEIC $NOC $BNS $IIVI $TBBK $RTN http://t.co/XQITF0lRKD #swingtrading #mkt #stock
Stock Relay
28 Oct 14 23:04:37
stockblaster14: Stock Alerts: The Bancorp (TBBK) 9.32 $TBBK Bancorp Down 53.5% http://t.co/6UA5EEwGQv
28 Oct 14 19:08:26
The Bancorp Inc (TBBK) Jumps 6.64% on October 28 $TBBK http://t.co/pK6jp23P1p
28 Oct 14 19:00:05
Gap Ups: $DM $MTU $SEIC $NOC $BNS $IIVI $TBBK $RTN $TRS $VRTX $IDA $ROC $CRAY $TRNX $CVX http://t.co/XQITF0lRKD #nasdaq #nyse #daytrading
BNK Invest
28 Oct 14 11:29:42
$TBBK Insiders vs. Shorts #stocks http://t.co/U2dpxd3SSU
27 Oct 14 17:38:29
8 Online Banks That Let You Skip the Fees, Enjoy the Interest http://t.co/mFSPwOpw6z via @daily_finance $SCHW $COF $TBBK
Financially Blonde
27 Oct 14 11:46:09
8 Online Banks That Let You Skip the Fees, Enjoy the Interest http://t.co/R0fl43Vz7d via @daily_finance $SCHW $COF $TBBK
Mark Palmer
27 Oct 14 06:16:35
The Bancorp: 3Q14 Report Consequential for TBBK as Concerns About FDIC Consent Order, Credit Hang Over Stock http://t.co/8TZDgaqdhz $tbbk
26 Oct 14 08:41:56
TBBK 8.72 Stock Charts $TBBK The Bancorp Inc. (NASDAQ) Last Updated: 10/26/2014 10:41:55 TBBK Stock Chart - 1 http://t.co/kyVmEYYRQ1
By  +Follow June 11, 2014 3:32PM



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