The Bancorp in Wilmington, Del., reported another quarterly loss, as suspected loan fraud offset positive momentum in other businesses.

The $4.8 billion-asset company said in a press release Thursday that it lost $29 million in the fourth quarter, or a loss of 52 cents a share. The company earned $19 million a year earlier.

The Bancorp said it reduced the value of its investment in Walnut Street, an entity that contains a portfolio of commercial real estate, commercial-and-industrial and residential mortgage loans, by $24.7 million.

The company also said that it recorded a write-down and a loss in discontinued operations because of suspected fraud tied to a commercial credit.

The Bancorp, which did not specify the amounts of the writedown or loss, did not immediately respond to a request for comment. Management will hold a conference call Friday morning to discuss quarterly results.

Total loans rose 14% from a year earlier, to $1.2 billion. Small Business Administration loans rose 20%, to $370 million, while direct lease financing rose 50%, to $347 million.

Prepaid card fee income rose 2%, to $12 million.

The Bancorp also said it is looking to cut an additional $20 million in expenses this year, though it did not provide any detail on the types of cuts planned.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.
Andy Peters

Andy Peters

Andy Peters writes about regional banks, consumer finance and debt collections for American Banker.