Bancorp (TBBK) Increases Provision For Consumer Fintech Loan Credit Losses, Acknowledges Internal Control Weaknesses – Hagens Berman

SAN FRANCISCO, April 21, 2025 (GLOBE NEWSWIRE) -- On April 7, 2025, The Bancorp, Inc. (NASDAQ: TBBK) belatedly filed its amended annual report, in which it disclosed previously omitted crucial information to investors, escalating investor concerns already inflamed by asset quality matters alleged in a securities class action suit. The suit, captioned Linden v. The Bancorp, Inc., et al., No. 1:25-cv-00326-JLH (D. Del.), seeks to represent investors who purchased Bancorp securities between January 25, 2024, and March 4, 2025 Hagens Berman urges investors who purchased Bancorp shares and suffered substantial losses to submit your losses now. Class Period: Jan. 25, 2024 – Mar. 4, 2025Lead Plaintiff Deadline: May 16, 2025Visit: www.hbsslaw.com/investor-fraud/tbbk Contact the Firm Now: TBBK@hbsslaw.com 844-916-0895 Recent Development: On April 7, 2025, Bancorp filed its amended annual report on Form 10-K/A revising its financial statements and disclosures filed a little over one month beforehand. Among other matters, the amended filing revealed that: In contrast to its March 3, 2025 original annual report, which said its provision for credit losses for consumer fintech loans was $19.6 million, the amended annual report said this provision should be $30.7 million; andIn contrast to its March 3, 2025 original annual report, which said its internal control over financial reporting was effective, the amended annual report said it was not effective. Bancorp’s amended filing follows its March 4, 2025 revelation that its March 3, 2025 original annual report containing the "filed financial statements for the fiscal years ended December 31, 2022 through 2024 as shown in the Annual Report, should no longer be relied upon." The company also disclosed that neither its former auditor, Grant Thornton LLP, nor its current auditor, Crowe LLP, had provided final approval for the inclusion of their audit opinions in the report. The Bancorp, Inc. (TBBK) Securities Class Action: The company’s March 4 disclosure triggered the filing of a securities class action complaint alleging that Bancorp made false and misleading statements while failing to disclose crucial information to investors. More specifically, the suit alleges that: Bancorp underrepresented the significant risk of default or loss on its REBL [real estate bridge loan] portfolio;Its current expected credit loss methodology was insufficient to account for the provision and/or allowance for credit losses;As a result of the foregoing, the company was reasonably likely to increase its provision for credit losses;There were material weaknesses in its internal control over financial reporting;Its financial statements had not been approved by its independent auditor; andAs a result, the company’s financial statements could not be relied on by investors. Nearly a year before Bancorp’s March 4, 2025 announcement, short-seller Culper Research issued a prescient warning. On March 21, 2024, Culper Research published a scathing report titled "The Bancorp Inc (NASDAQ: TBBK): Bridge to Nowhere," which accused the company of misrepresenting the quality of its real estate bridge loan portfolio and significantly under-reserving for potential loan losses. The report, based on a loan-by-loan analysis and visits to 21 Bancorp-funded properties, raised serious concerns about the company's financial practices. Then, on October 24, 2024, Bancorp reported disappointing Q3 2024 financial results and blamed “a new CECL [current expected credit loss] factor” to the Company’s analysis of REBL loans classified as either special mention or substandard “which increased the provision for credit losses and resulted in an after-tax reduction in net income of $1.5 million.” The company also revealed that “prior period interest income reversals on real estate bridge loans transferred to non-accrual or modified […] resulted in an after-tax reduction in net income of $1.2 million.” Hagens Berman’s Investigation Prominent shareholder rights firm Hagens Berman is investigating the alleged claims. “Our investigation is focused on uncovering whether Bancorp's financial statements accurately reflected the true state of its loan portfolios and whether the company adhered to proper accounting standards,” said Reed Kathrein, the Hagens Berman Partner leading the firm’s probe. If you invested in Bancorp and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now » If you’d like more information and answers to frequently asked questions about the Bancorp case and our investigation, read more » Whistleblowers: Persons with non-public information regarding Bancorp should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email TBBK@hbsslaw.com. About Hagens BermanHagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw. Contact: Reed Kathrein, 844-916-0895

Bancorp (TBBK) Increases Provision For Consumer Fintech Loan Credit Losses, Acknowledges Internal Control Weaknesses – Hagens Berman

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