Bancorp revises financial statements, audit approvals pending

Published 04/03/2025, 23:38
Bancorp revises financial statements, audit approvals pending

WILMINGTON, DE – Bancorp, Inc. (NASDAQ:TBBK), a commercial banking institution with a market capitalization of $2.57 billion and currently trading at $53.59, announced today that its previously issued financial statements for fiscal years 2022 to 2024 should not be relied upon. According to InvestingPro data, the company has maintained strong profitability with a P/E ratio of 12.57, despite recent challenges. This revision follows a notification from the company’s independent public accounting firm, Crowe LLP, which had not given final approval for the audit opinion of the 2024 fiscal year or consent for the use of its audit report in certain registration statements.

The company’s Audit Committee, after discussions with Crowe LLP and Grant Thornton LLP – Bancorp’s prior accounting firm – reached this conclusion on Monday. The issue stems from a lack of proper approval to include audit opinions and consents in the Annual Report filed for the fiscal year ended December 31, 2024. Despite these developments, InvestingPro analysis shows the company maintains a "GREAT" overall financial health score of 3.11, suggesting strong underlying fundamentals. The company is now undertaking additional procedures to address the accounting for consumer fintech loans within the allowance for credit losses.

Bancorp is working to file an amended Annual Report that will include the necessary audit opinions and consents from both Crowe LLP and Grant Thornton LLP. The impact of these revisions on the company’s internal controls and disclosure procedures is currently under evaluation.

Investors and stakeholders are advised to await the amended financial statements for accurate information regarding the company’s financial position and performance over the stated periods. The company has committed to resolving these issues promptly and ensuring that its financial reporting is accurate and reliable.

This announcement is based on a press release statement and reflects the latest developments regarding Bancorp, Inc.’s financial reporting. Looking ahead, analysts have set price targets ranging from $67 to $72, with the next earnings report scheduled for April 24, 2025. For comprehensive analysis and additional insights, investors can access the detailed Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with in-depth financial metrics and expert analysis.

In other recent news, The Bancorp reported its fourth-quarter 2024 earnings, achieving an earnings per share (EPS) of $1.15, which was in line with analysts’ forecasts. The company’s revenue reached $148.56 million, surpassing the expected $133.01 million, highlighting strong performance driven by fintech activities. Additionally, The Bancorp announced a $150 million share buyback plan for 2025, reflecting confidence in its financial position. Raymond (NSE:RYMD) James responded to these developments by raising The Bancorp’s stock target from $60 to $67, maintaining an Outperform rating. The firm noted that The Bancorp’s ambitious credit sponsorship initiative aims to reach $1 billion by the end of 2025, with further expansion expected. The initiative is designed to boost fee income growth and de-risk the loan portfolio, particularly in the Real Estate Backed Lending segment. The Bancorp’s management remains optimistic about credit concerns, anticipating improvement in the near future. Overall, these recent developments underscore The Bancorp’s strategic focus on fintech partnerships and credit sponsorships.

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