The SEC imposed a $1.4 million fine on The Bancorp Inc. in a settlement related to an investigation that the bank had understated its loan allowances and lease losses.
The regulator claims The Bancorp failed to classify certain loans and to take appropriate charges for individually impaired loans understating the allowances and losses. The company also failed to assign correct risk ratings and did not identify certain large lending relationships as containing substandard loans. It also failed to devise or maintain related internal accounting controls, including for identifying and appropriately considering troubled debt restructurings, according to the regulator.
The SEC ordered that the company cease and desist from committing or causing any violations and any future violations and pay a civil money penalty in the amount of $1.4 million within 10 days.
The Bancorp did not admit or deny the SEC findings. It noted in a Form 8-K that it would record the settlement charge in its third quarter earnings.
