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Under CEO Betsy Cohen, The Bancorp is plugging alternative financial services upstarts into the banking system. But a regulatory hiccup could hinder growth.
July 28 -
The Delaware bank, which issues cards for a wide swath of the prepaid industry, will have to curtail its growth as part of an agreement with the FDIC.
June 13 -
The Bancorp (TBBK) in Wilmington, Del., is looking to sell up to $50 million in common stock.
July 11
The Bancorp in Wilmington, Del., has revised its second-quarter results and
The $4.3 billion-asset bank said late Tuesday that it earned $338,000 in the quarter, after first reporting a loss of approximately $5.5 million on July 23.
The change came after the bank reallocated approximately $7 million in consulting expenses required under a regulatory order from the Federal Deposit Insurance Corp.
The expenses, the bank said, "will be recognized when the services are performed, expected to be in the third and fourth quarter of the current year."
The consent order, which was issued in June, cited weaknesses in the bank's compliance with the Bank Secrecy Act. The order places restrictions on its lucrative prepaid card and payment acceptance business. It
In a
The filing also said that FDIC has informed the bank that "certain operational aspects" related to its third-party vendors may affect its compliance rating.
"Civil money penalties, if assessed against the bank, are not indemnified," the bank said.
The Bancorp's shares were up 1.2% in early trading Wednesday, to $8.70. Its stock price has fallen by roughly 46% since the enforcement order was disclosed in June.
