Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?



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. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Liked What You Read? Join Equities.com and Connect With Your Favorite Financial Experts FOR FREE! Members of Equities.com gain access to our leading financial news and content, active social investment community, proprietary research tools including the 2014 Small-Cap Stars, E.V.A. reports and more.

Results for TBBK
Antonio NaVi
23 May 15 14:38:26
$TBBK posible ruptura de nivel trascendental q llegaría hasta 10.3, si rompe SMA20 veremos caída hasta 9.5 #TRMX http://t.co/mLLeZZaESZ
IH News Desk
19 May 15 05:06:07
LVCLY Last Price Click Here -> http://t.co/hNQvOTtmu5 Trending $LVCLY $ALFVF $GARB $TBBK #LVCLY #pennystocks #stockmarket
18 May 15 20:08:37
VNLDF E.P.S. Click Here -> http://t.co/fPlTMzNy6H Trending $VNLDF $TBBK $ABCP $RUALF #VNLDF #nasdaq #investing
18 May 15 15:50:17
Bullish Cross http://t.co/BTrzacRH4o $ZNGA $WMB $BP $CROX $AEM $GBX $GOLD $EQC $BOKF $HIL $AVD $ETJ $TBBK $HHY $KZ
Sleek Money
17 May 15 07:37:01
Bancorp Receives $13.00 Consensus Target Price from Analysts $TBBK http://t.co/O3RvqM7TiQ
17 May 15 07:33:03
$TBBK: Bancorp Receives $13.00 Consensus Target Price from Analysts ...: http://t.co/qVYh0ZbR4Q
The Legacy News
17 May 15 05:57:41
Bancorp Lifted to Buy at Zacks $TBBK http://t.co/5fGTPTAAEc
16 May 15 08:34:03
$TBBK: Bancorp Stock Rating Upgraded by Zacks (TBBK): http://t.co/TcGcQBY0ID
By  +Follow June 11, 2014 3:32PM



blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.

Login or Register