Sun Bancorp, Inc. Announces Completion of Sale of Hammonton Location to Cape Bank, Progress on Branch Rationalization Initiatives
MOUNT LAUREL, N.J., Aug. 31, 2015 /PRNewswire/ --
Highlights:
- Sun National Bank completes sale of Hammonton, N.J. branch location to Cape Bank.
- Approximately $32.8 million in deposits and approximately $4.8 million in loans included in sale as well as fixed assets. Bank to record net gain on sale in third quarter of approximately $1.3 million from Hammonton divestiture.
- Bank reports successful completion of Bridgeton, Glassboro, Howell, and Carneys Point branch consolidations; on schedule to consolidate Trenton, West Windsor, Holmdel, Brigantine and Toms River locations by end of third quarter 2015.
- Expected non-interest expense reduction from aforementioned nine consolidating branches and one branch sale to be approximately $4.6 million annually.
Sun Bancorp, Inc. (SNBC) (the "Company"), the holding company for Sun National Bank (the "Bank"), reported today that the Bank has completed the sale of its Hammonton, N.J. location along with related deposits and certain loans in Atlantic County to Cape Bank, the banking subsidiary of Cape Bancorp, Inc. (NASDAQ: CBNJ). The agreement of sale for this transaction was first announced in March 2015. The sale of the Bank's Hammonton location included approximately $32.8 million in combined total deposits and approximately $354 thousand in fixed assets. In addition, approximately $4.8 million in combined local branch loans were sold at book value.
"This transaction represents our continued successful efforts to efficiently utilize our excess liquidity, while continuing to rationalize our branch office footprint and improve our operating expense base," said President & CEO Thomas M. O'Brien. "This strategic divestiture will allow us to further focus our efforts on growing our franchise. Additionally, our Hammonton customers will be well-served by the locally-based team at Cape Bank."
Furthermore, over the last few months, the Bank has successfully completed the consolidation and closure of its Bridgeton, Glassboro, Howell, and Carneys Point locations, all in New Jersey. The previously-announced consolidation and closure of its Holmdel, Trenton, West Windsor, Brigantine and Toms River locations are on schedule for completion during September, 2015. "By the end of the third quarter, the Bank will have successfully completed its major branch rationalization efforts," said O'Brien. "Cumulatively, the expense savings from the Hammonton divestiture and the consolidation of the additional nine locations will further reduce our annual operating expenses by approximately $4.6 million. The Bank will begin to recognize the full financial benefit of these 2015 efforts immediately in the fourth quarter. The entire branch rationalization initiative undertaken since 2014 will have helped the Bank reduce annual operating expenses by approximately $9.6 million and more importantly, the consolidations have improved the average branch deposit size from approximately $50.5 million to approximately $60.5 million."
About Sun Bancorp, Inc.
Sun Bancorp, Inc. (NASDAQ: SNBC) is a $2.38 billion asset bank holding company headquartered in Mount Laurel, New Jersey. Its primary subsidiary is Sun National Bank, a community bank serving customers throughout New Jersey. Sun National Bank is an Equal Housing Lender and its deposits are insured up to the legal maximum by the Federal Deposit Insurance Corporation (FDIC). For more information about Sun National Bank and Sun Bancorp, Inc., visit www.sunnationalbank.com.
Cautionary Note Regarding Forward-Looking Statements
Except for historical information contained herein, the statements made in this press release constitute "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements may include, but are not limited to, statements about the Company's plans, objectives, expectations and intentions. Actual results may differ materially from the results discussed in the forward-looking statements because such statements involve certain risks and uncertainties. Additional information on these risks can be found in the Company's filings with the Securities and Exchange Commission.
SOURCE Sun Bancorp, Inc.
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