The Bancorp, Inc. Investors: Please contact the Portnoy Law Firm to recover your losses. May 16, 2025 Deadline to file Lead Plaintiff Motion.

Investors can contact the law firm at no cost to learn more about recovering their losses

/EIN News/ -- LOS ANGELES, March 20, 2025 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises The Bancorp, Inc. ("Bancorp" or the "Company") (NASDAQ: TBBK) investors of a class action representing investors that bought securities between January 25, 2024 and March 4, 2025, inclusive (the "Class Period"). Bancorp investors have until May 16, 2025 to file a lead plaintiff motion.

Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 310-692-8883 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.

On March 21, 2024, at approximately 9:45 a.m. EST, Culper Research released a report alleging that the Company had understated significant risks of default and losses related to its real estate bridge loans (“REBLs”). The report claimed that the loan portfolio was filled with high-risk borrowers who had been lured in by promises of passive income and rapid wealth generation. It further alleged that many of the Company's REBL-backed properties were in poor condition, with high vacancy rates and multiple condemnations. Despite these issues, the Company purportedly downplayed the risk of defaults and losses, maintaining a significantly inadequate loan loss reserve of just $4.7 million—0.24% of the REBL portfolio.

Following this revelation, the Company’s stock price fell $3.63 (10.15%) to close at $32.12 per share on March 21, 2024, amid unusually heavy trading.

On October 24, 2024, after market close, the Company reported its Q3 2024 earnings, disclosing $51.5 million in net income. However, it attributed part of its financial performance to adjustments in credit loss provisions for at-risk REBL loans, which reduced net income by $1.5 million after taxes. The Company also noted that prior interest income reversals on nonaccrual REBL loans further reduced net income by $1.2 million after taxes.

In response, the Company’s stock dropped $7.95 (14.47%) to $47.01 per share on October 25, 2024, again on heavy trading volume.

Finally, on March 4, 2025, after market close, the Company announced that its financial statements for 2022-2024 "should no longer be relied upon." The Company explained that its auditors had not approved the inclusion of their audit opinion in the Company’s annual report or in certain registration statements. Additionally, the Company revealed it was conducting an internal review of consumer fintech loan accounting and disclosure controls to correct potential issues before filing an amended annual report. As a result, the Company admitted it would miss the deadline for its fiscal year 2024 annual report filing.

Following this announcement, the Company’s stock price fell $2.34 (4.38%) to close at $51.25 per share on March 5, 2025, on unusually heavy trading volume.

Please visit our website to review more information and submit your transaction information.

The Portnoy Law Firm represents investors in pursuing claims against caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.

Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com

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