The Bancorp(TBBK) GlobeNewswire News Room·2025-04-03 18:12Core 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, Grant Thornton LLP, nor its current auditor, Crowe LLP, has provided final approval for the audit opinions [4]. Legal and Investor Concerns - The March 4 disclosure led to a securities class action complaint alleging that Bancorp made false and misleading statements while failing to disclose crucial information to investors [5]. - The class action lawsuit seeks to represent investors who purchased Bancorp securities between January 25, 2024, and March 4, 2025, with a lead plaintiff deadline set for May 16, 2025 [3][5]. - Hagens Berman, a prominent shareholder rights firm, is investigating the claims against Bancorp, focusing on whether the financial statements accurately reflected the true state of its loan portfolios [8]. Financial Performance and Risks - Bancorp reported disappointing Q3 2024 financial results, attributing the issues to a new CECL factor and underestimating the risk of default on its real estate bridge loan portfolio [6]. - The company acknowledged material weaknesses in its internal control over financial reporting and indicated that its financial statements could not be relied upon by investors [6][7].