Sun Bancorp, Inc. Announces Completion of Sale of Seven Locations to Sturdy Savings Bank
MOUNT LAUREL, N.J., March 9, 2015 /PRNewswire/ --
Highlights
- Sun National Bank completes sale of Somers Point, Tuckahoe, Cape May Court House, Cape May, Rio Grande, Wildwood Crest and North Wildwood offices to Sturdy Savings Bank.
- Approximately $153 million in deposits and approximately $64 million in loans included in sale.
- Sun National Bank to record net gain on sale of approximately $9.2 million.
- Expected annual non-interest expense reduction of $3 million upon divestiture of locations.
Sun Bancorp, Inc. (NASDAQ: SNBC) (the "Company"), the holding company for Sun National Bank (the "Bank"), reported today that the Bank has completed its previously-announced sale of six offices along with related deposits and certain loans in Cape May County as well as one office in Atlantic County to Sturdy Savings Bank. The Bank's Somers Point, Tuckahoe, Cape May Court House, Cape May, Rio Grande, Wildwood Crest and North Wildwood branches, with approximately $153 million in combined total deposits and approximately $4 million in fixed assets, were sold for a premium on deposits of 8.765%, or approximately $13.5 million. In addition, approximately $64 million in combined local branch loans were sold at book value. The net gain on sale, after adjusting for the book value of fixed assets and certain transaction costs, will be approximately $9.2 million. The transaction, first announced in July 2014, will allow the Company to prospectively realize an annualized reduction in its operating expense base of approximately $3 million.
"This financially-attractive transaction represents an efficient use of the Bank's current excess liquidity and will help further rationalize our physical delivery channels and expense base," said President & CEO Thomas M. O'Brien. "We can begin to focus our efforts in core markets. Additionally, our Cape May County customers will be well-served by the locally-based team at Sturdy Savings Bank."
About Sun Bancorp. Inc.
Sun Bancorp, Inc. (NASDAQ: SNBC) is a $2.72 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. Customary post-closing settlements may affect premiums and net gain on sale figures. 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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