Bancorp shares sink on more bad loan news
Still 'well-capitalized,' says analyst Schiraldi
Shares of Bancorp Bank, the Wilmington- and Philadelphia-based specialty loan, deposit and banking-services company, fell more than $1 a share, to below $10, in morning trading after the company announced more loan losses over the weekend and said it won't be filing its yearly financial report (10-K) until after June. See Bancorp (TBBK) filings here.
Bancorp, which had already delayed the report once after disclosing it had waited too long in disclosing previous loan losses, is further delaying its reports as "TBBK's auditors scour the book for further losses that
similarly should have been taken against the book in prior periods," writes Frank Schiraldi, analyst at Sandler O'Neill + Partners, New York. Bancorp was founded by former Jefferson Bank boss Betsy Zubrow Cohen, who stepped down from the bank's top job last year,
With its latest reported losses, Bancorp's bad commercial loans, mostly in the Philadelphia area, total 12.5 percent, or about 3 times more than what other Philadelphia-area banks have been reporting on their portfolios, according to Schiraldi. He expects "potential future losses" as well. But the bank will remain "well-capitalized," Schiraldi adds, predicting the share price shouldn't stabilize below $9.25 a share.