The Bancorp Hit with FDIC Surcharge from Prepaid Card Ruling

By Colin Wilhelm January 15, 2015, 11:27 a.m. EST 1 Min Read

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The Bancorp in Wilmington, Del., said the Federal Deposit Insurance Corp. will assess an insurance premium surcharge after a broader ruling on the status of prepaid cards.

The FDIC recently determined that certain prepaid accounts, including general purpose prepaid cards, should be reported as brokered deposits. Generally, FDIC insurance premiums can increase when brokered deposit balances rise above a predetermined level.

The $4.3 billion-asset Bancorp said in a regulatory filing Wednesday that the surcharge will amount to 10 basis points applied against the average liabilities of its bank. The FDIC will end the surcharge at a time of its choosing after further evaluation of the bank's finances, the filing said.

The company, which has been dealing with a regulatory order and other challenges, noted in the filing that its capital ratios remain unaffected by the reclassification of deposits.

Colin Wilhelm