The Federal Reserve has terminated its supervisory letter dated May 11, 2015, against The Bancorp Inc. that barred the company from paying dividends without prior approval, according to a Dec. 11 Form 8-K filing by the company.
The letter required the Fed's preapproval for the company's quarterly payments on its trust preferred securities, the payment of any potential future dividends on the company's common stock and the issuance of debt.
The termination of the letter also terminates the requirement for preapproval for the aforementioned payments or debt issuances.
The Bancorp has not paid any common stock dividends but may do so in the future. However, the company noted that the funding of any potential future common stock dividend would likely come from its unit, Bancorp Bank, which itself is subject to a June 2014 consent order from the Federal Deposit Insurance Corp. that requires preapproval of the FDIC prior to payments to The Bancorp.