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The Bancorp Hits 52-Week Low Following Violation Investigations

By  +Follow June 11, 2014 3:32PM
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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
Biz News Pioneer
2 Sep 14 21:50:17
$TBBK: BANCORP, INC. Financials http://t.co/29hDNY45eR http://t.co/R1BGcwoUGT
4-traders.com
2 Sep 14 13:35:09
BANCORP : Regulation FD Disclosure, Financial Statements and Exhibits (form 8-K) http://t.co/QrCUHtiaKK $TBBK
VisualStock Resource
2 Sep 14 13:34:10
$TBBK - Current Report Filing (8-k) http://t.co/3xvkmNDo1x
$Stocknewsalerts
2 Sep 14 13:34:09
$TBBK Bancorp, Inc. Document: 8-K From our Stock News Alerts App
BV Financials
2 Sep 14 13:34:05
$TBBK Bancorp, Inc files Form 8-K (Events or Changes Between Quarterly Reports) SEC Filing.. http://t.co/BaQpWRPggV
VisualStock Resource
2 Sep 14 10:57:03
$TBBK - SHAREHOLDER ALERT: Brower Piven Encourages Investors Who Have Losses In Excess Of $100,000 From http://t.co/F6ptIr97mh
zoemzoem
1 Sep 14 12:57:54
great value stocks $mict $gcap $tbbk $gol $pt $ffky $snbc $csfl $ire $nbg
Bulls vs Bears
31 Aug 14 06:50:02
$TBBK: Meridian Bancorp Inc. (EBSB)'s F Richard Fernandez buys 2000 shares http://t.co/bKqrGgAFe7 http://t.co/zFDRb6kN2l
Steve Morton
30 Aug 14 16:01:18
RT @GavinGreenberg: $TBBK: EQUITY ALERT: The Rosen Law Firm Reminds The Bancorp, Inc. Investors of ... http://t.co/POoGjPLJMO http://t.co/U…
Bulls vs Bears
30 Aug 14 15:50:03
$TBBK: EQUITY ALERT: The Rosen Law Firm Reminds The Bancorp, Inc. Investors of ... http://t.co/POoGjPLJMO http://t.co/U7Vfg71xJl
Wall Street Monitor
30 Aug 14 09:50:01
$TBBK: Talmer Bancorp Inc (TLMR) Insider Lowers Holdings By Over 20000 Shares http://t.co/MyMakKI6B9 http://t.co/GpJkRfrGIg
FonsieTrader
30 Aug 14 07:16:12
Bearish ADX Crossovers 2/2 $KNDI $LITB $MBT $MSTX $NLS $PCLN $PRXL $PSUN $QIWI $RLI $SAN $TBBK $WU $YPF $ZOES http://t.co/XjFp9Ogovl
Biz News Pioneer
26 Aug 14 08:50:10
$TBBK: Lnb Bancorp Inc. (LNBB) Tops Small-Cap Stars Financials on August 25 http://t.co/rQ14EkgQRo http://t.co/yK1dKesRLF
				
				
By  +Follow June 11, 2014 3:32PM
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