Law Offices of Frank R. Cruz Encourages The Bancorp, Inc. (TBBK) Investors To Inquire About Securities Fraud Class Action

The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of investors who purchased The Bancorp, Inc. (“TBBK” or the “Company”) (NASDAQ: TBBK) securities between January 25, 2024 and March 4, 2025, inclusive (the “Class Period”). TBBK investors have until May 16, 2025 to file a lead plaintiff motion.

IF YOU SUFFERED A LOSS ON YOUR BANCORP INVESTMENTS, CLICK HERE TO SUBMIT A CLAIM TO POTENTIALLY RECOVER YOUR LOSSES IN THE ONGOING SECURITIES FRAUD LAWSUIT.

You can also contact the Law Offices of Frank R. Cruz to discuss your legal rights by email at [e-mail], by telephone at [phone], or visit our website at www.frankcruzlaw.com.

What Happened?

On March 21, 2024, at approximately 9:45 a.m. EST, Culper Research issued a report, alleging that the Company had underrepresented significant risks of default and/or loss on certain real estate bridge loans (“REBLs”). The report alleged the Company’s loan book is “rife with unsophisticated syndicated borrowers” who were “coaxed by promises of generational wealth through passive income” with “get rich quick” promises. The report alleged that the Company’s REBL loan portfolio is filled with apartments which are “quite literally, crumbling,” with high vacancies and multiple condemnations. The report stated the Company “blindly reassures investors that its book contains ‘no substantial risk of default or loss,’” but, in reality, the Company’s “REBL portfolio faces meaningful risks and will result in meaningful losses.” The report concluded that the Company’s reserve of only “$4.7 million in REBL loan allowances, representing a mere 0.24% of the total REBL book” is “short by an order of magnitude or more.”

On this news, the Company’s share price fell $3.63, or 10.15%, to close at $32.12 per share on March 21, 2024, on unusually heavy trading volume.

Then, on October 24, 2024, after the market closed, the Company announced its third quarter 2024 financial results in a press release for the period ended September 30, 2024, reporting $51.5 million in net income. The Company attributed the results in part, to “a new CECL [current expected credit losses methodology] 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 further explained its results also reflected “prior period interest income reversals on real estate bridge loans transferred to nonaccrual or modified” which “resulted in an after-tax reduction in net income of $1.2 million.”