Bancorp slides after FDIC slap; CEO search grinds on

Shares of The Bancorp, the Wilmington- and Philadelphia-based bank offering small-business loan, prepaid debit card and specialized deposit account bank, fell below $6 a share for the first time since the banking crisis of 2009, amid a bank stock slump. Bank analyst Frank Schiraldi reviewed Bancorp's issues in a report to clients of Sandler O'Neill + Partners; highlights:

"On December 23, the FDIC announced a settlement with The Bancorp Bank for 'unfair and deceptive practices' in violation of section 5 of the Federal Trade Commission Act." Bancorp will pay $3 million in civil penalties plus $1.3 million in restitution to 21,000 customers (though "third parties" will likely finance the restitution piece.)

"The FDIC determined (Bancorp) violated the act by failing to provide promised protections to consumers, failing to provide promised benefits for debit card rewards program and charging deceptive debit decline fees" on prepaid debit cards."

The settlement is separate from and "more widespread than" a $172,000 settlement Bancorp made with FDIC in 2012 over "unfair and deceptive practices" at lender Higher One, a former Bancorp partner. That relationship was later taken over by Jay Sidhu's Customers Bank.

Separately, Bancorp expects to collect a $34 million premium on its sale of 170,000 accounts and $400 million in deposits to HealthEquity Inc; and expects to continue boosting its Small Business Administration and auto-fleet leasing businesses. Last month the company said it agreed to buy Ellis Brooks Leasing Inc., San Francisco.

Bancorp is looking for a new chief executive following the December resignation of CEO Frank Mastrangelo, longtime deputy to bank founder and retired chairman Betsy Zubrow Cohen.