An enforcement action related to anti-money-laundering compliance once again forced The Bancorp in Wilmington, Del., to report a quarterly loss.
The $4.4 billion-asset company said in a press release Thursday that it lost $31.4 million in the second quarter, or a loss of 83 cents a share. The company earned $174,000 a year earlier.
It's the second consecutive quarterly loss tied to high costs associated with a 2014 anti-money laundering regulatory order; the company lost $10.9 million in the first quarter. Results for the second quarter included $13.4 million of Bank Secrecy Act and lookback consulting expenses. Overall, noninterest expense rose 23% to $57.1 million.
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The Bancorp in Wilmington, Del., has selected a former Citigroup executive as its next chief executive.
May 24 -
Two Democratic Senate Banking Committee members have asked Walmart, Green Dot, and MasterCard to explain an outage in which Walmart MoneyCard users were blocked from accessing their funds.
June 28
The Bancorp expects its Bank Secrecy Act and lookback consulting expenses to be "substantially less" in the third quarter because the program is "substantially complete," Damian Kozlowski, the company's chief executive, said in the release.
Noninterest income fell 61% to $9.5 million, partially due to $13.9 million in charges tied to an investment in an unconsolidated entity. The Bancorp's gain on the sale of loans fell 77%, to $1.3 million, while prepaid card fee income rose 21%, to $13.5 million.
Net interest income rose 23% to $20.9 million. The average yield on interest-earning assets rose 66 basis points, to 2.99%. Loans and continuing operations held for sale rose 30%, to $1.6 billion. The loan-loss provision doubled to $1.1 million.
The Bancorp issues prepaid cards, makes small-business and commercial real estate loans, and provides leases for automobile fleets.
