The Bancorp Implements Cost Reduction Plan to Reduce Expenses and Improve Efficiencies
September 15 2016 - 5:05PM
Business Wire
First Phase Involves Workforce Reduction
The Bancorp, Inc. (NASDAQ: TBBK) today began the implementation
of a board-approved cost reduction plan designed to streamline its
businesses and corporate functions and better position the
organization for the future. The first phase of the plan entailed a
company-wide workforce reduction. The second phase will entail a
close examination and identification of potential cost saving
opportunities within the company’s supply chain network.
“As part of a larger Strategic Plan, this necessary and
difficult effort will create a financial services and technology
company that is stronger, nimbler, and better equipped within the
marketplace,” said Damian Kozlowski, President and Chief Executive
Officer. “We believe we can substantially lower our operating run
rate by 20% to 25% without significantly affecting revenue and,
ultimately, have a healthy operating leverage with double-digit
business revenue and single-digit expense growth. We also believe
we can take these actions without negatively impacting our
remediation efforts or operating model controls. We express our
sincere gratitude for the contributions of the employees affected
by job eliminations and are committed to supporting them with
important transitional information and resources.”
About The Bancorp
With operations in the US and Europe, The Bancorp, Inc. (NASDAQ:
TBBK) is dedicated to serving the unique needs of non-bank
financial service companies, ranging from entrepreneurial start-ups
to those on the Fortune 500. The company’s primary subsidiary, The
Bancorp Bank (Member FDIC, Equal Housing Lender), has been
repeatedly recognized in the payments industry as the Top Issuer of
Prepaid Cards (U.S.), a top merchant sponsor bank, and a top ACH
originator. Specialized lending distinctions include National
Preferred SBA Lender, a leading provider of securities-backed lines
of credit, and one of the few bank-owned commercial leasing groups
in the nation. For more information, please
visit www.thebancorp.com.
Forward-Looking Statements
Statements in this release regarding The Bancorp's business are
“forward-looking statements” that involve risks and uncertainties.
These statements may be identified by the use of forward-looking
terminology, including but not limited to the words “may,”
“believe,” “will,” “expect,” “look,” “anticipate,” “estimate,”
“continue,” or similar words. For further discussion of the
risks and uncertainties to which these forward-looking statements
may be subject, see The Bancorp's filings with the SEC, including
the “Risk Factors” and “Management's Discussion and Analysis of
Financial Condition and Results of Operations” sections of those
filings. These risks and uncertainties could cause actual results
to differ materially from those projected in the forward-looking
statements. The forward-looking statements speak only as of the
date of this press release. The Bancorp does not undertake to
publicly revise or update forward-looking statements in this press
release to reflect events or circumstances that arise after the
date of this presentation, except as may be required under
applicable law.
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version on businesswire.com: http://www.businesswire.com/news/home/20160915006523/en/
The Bancorp Media RelationsRob Tacey, Director, Public
Relations302-385-1418rtacey@thebancorp.comorThe Bancorp, Inc.
Investor RelationsAndres Viroslav, Director, Investor
Relations215-861-7990aviroslav@thebancorp.com
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