The Bancorp in Wilmington, Del., has revised its second-quarter results and now says it turned a modest profit in the quarter that ended June 30.
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 also mandates the bank to add new personnel and draft additional procedures to comply with anti-money-laundering laws.
In a regulatory filing Tuesday, the bank provided new information about the status of the consent order, saying it has learned that "certain actions of third parties through which we issue cards are being scrutinized by the FDIC."
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.