NEW YORK (TheStreet) -- Bancorp Inc.
(TBBK) stock is sinking on Thursday after the company posted lower-than-expected earnings and revenue in its March-ending quarter.
By midafternoon, shares had dropped 15.1% to $15.80.
Over the three months to March, the banking services provider reported net income of $298,000, or a penny a share, compared to $7.4 million, or 20 cents a share, in the year-ago quarter.
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Analysts surveyed by Thomson Reuters
had expected $10.91 million, or 28 cents a share, in net income.
"The quarter was significantly impacted by an additional loan loss provision of $11.8 million principally related to newly identified adversely classified loans," CEO Betsy Cohen explained in a statement.
Revenue of $26.57 million was slightly under expectations of $26.87 million.
TheStreet Ratings team rates BANCORP INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate BANCORP INC (TBBK) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."
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