The Bancorp(TBBK) Prnewswire·2025-04-02 13:08Core Viewpoint - The Bancorp, Inc. has failed to meet its self-imposed deadline to restate its financial reports, leading to a Nasdaq non-compliance notice and heightened investor concerns due to an ongoing securities class action lawsuit [1][2]. Financial Reporting Issues - The company initially indicated it would file its delayed Annual Report within a 15-day extension but has not provided an explanation for the failure as of March 31, 2025 [2][4]. - On March 4, 2025, Bancorp announced that the financial statements for the fiscal years ended December 31, 2022, through 2024 should no longer be relied upon, invalidating three years of financial reporting [3][4]. - The company is working on additional procedures related to accounting for consumer fintech loans in its allowance for credit losses, but neither its former auditor nor its current auditor has provided final approval for the audit opinions [4]. Legal and Investor Concerns - A securities class action lawsuit has been filed against Bancorp, alleging false and misleading statements while failing to disclose crucial information to investors [5]. - The class period for the lawsuit is from January 25, 2024, to March 4, 2025, with a lead plaintiff deadline set for May 16, 2025 [3]. - Hagens Berman, a shareholder rights firm, is investigating whether Bancorp's financial statements accurately reflected the state of its loan portfolios and adherence to accounting standards [8]. Historical Context - A report by short-seller Culper Research on March 21, 2024, accused Bancorp of misrepresenting the quality of its real estate bridge loan portfolio and under-reserving for potential loan losses [5][6]. - In Q3 2024, Bancorp reported disappointing financial results, attributing a 1.2 million reduction due to prior period interest income reversals [7].