UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 8-K

 

Current Report

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported):  October 17, 2017

 

The Bancorp, Inc.

(Exact name of registrant as specified in its charter)

 

Commission File Number:  000-51018

 

 

409 Silverside Road

Wilmington, DE 19809

(Address of principal executive offices, including zip code)

 

302-385-5000

(Registrant's telephone number, including area code)

 

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2).

[  ]  Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [  ]

 

 

 

On October 17, 2017, the Federal Deposit Insurance Corporation (the "FDIC") informed The Bancorp Bank (the "Bank"), a wholly owned subsidiary of The Bancorp, Inc. (the "Company"), that it intends to pursue an Order For Restitution ("Restitution Order") and Order to Pay Civil Money Penalty ("CMP Order") in an amount up to $2,576,000.  The FDIC's action principally emanates from one of the Bank's third-party payment processors ("Third Party Processor") suffering an internal system programming glitch.  This inadvertently resulted in consumers that engaged in signature-based point of sale transactions during the period from December 2010 to November 2014 being charged a greater fee than what was disclosed by the Bank.  Impacted consumers are being reimbursed by the Third Party Processor at  its own expense.  The Restitution Order would require the Bank to make such reimbursements if not otherwise made by the Third Party Processor, however, the Bank is indemnified by the Third Party Processor for such reimbursements.  Although the Bank is still evaluating its position with regard to the Restitution Order and the CMP Order, the Company will accrue $2,500,000 of related expense in its financial statements for the quarter ended September 30, 2017 in connection with the CMP Order.   Any amounts owed from the CMP Order would not be subject to any indemnification or recovery from any third party. 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

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