The Bancorp, Inc. (TBBK) Investigation: Bronstein, Gewirtz & Grossman, LLC Encourages Investors to Seek Compensation for Alleged Wrongdoings

NEW YORK--(BUSINESS WIRE)--Attorney Advertising--Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of The Bancorp, Inc. (“TBBK” or “the Company”) (NASDAQ: TBBK). Investors who purchased TBBK securities are encouraged to obtain additional information and assist the investigation by visiting the firm’s site: bgandg.com/TBBK.

Investigation Details:

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.” But, 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.”

On this news, TBBK’s stock price fell $3.63 per share, or 10.15%, to close at $32.12 per share on March 21, 2024.

What’s Next?

If you are aware of any facts relating to this investigation or purchased TBBK securities, you can assist this investigation by visiting the firm’s site: bgandg.com/TBBK. You can also contact Peretz Bronstein or his law clerk and client relations manager, Yael Nathanson of Bronstein, Gewirtz & Grossman, LLC: 332-239-2660.

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We represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys’ fees, usually a percentage of the total recovery, only if we are successful.

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Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide.

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