Wolf Haldenstein Adler Freeman & Herz LLP announces that it is investigating The Bancorp, Inc. for potential violations of federal securities laws

NEW YORK, April 19, 2024

The focus of the investigation is to whether the Company issued false and/or misleading statements and/or did not disclose information pertinent to investors.

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On March 21, 2024, TBBK shares sharply declined after activist short seller Culper Research ("Culper") took aim at the bank holding company, alleging that TBBK has misrepresented the quality of its real estate bridge loan ("REBL") portfolio and contending that TBBK's related loss reserves are woefully inadequate.

The report, entitled "The Bancorp Inc. (NASDAQ TBBK): Bridge to Nowhere," was based on Culper's loan-by-loan analysis, visits to 21 different TBBK-funded properties in the prior 2 weeks, conversations with former TBBK employees including a REBL underwriter, and conversations with several TBBK borrowers/syndicators. Culper further stated that "TBBK's book also appears rife with unsophisticated syndicated borrowers[]" with "'get rich quick dreams' who believed that they could easily rehab units, fill them with tenants, increase rents, and cash out for quick 'passive' returns."

The analyst continued, "for these properties, none of these things have happened: costs have skyrocketed, vacancies remain high, rents have remained relatively stagnant, and interest rates have more than doubled." In Culper's view "TBBK's $4.7 million in reserves, at just 0.24% of its REBL book, are a total farce."