• Resources
  • Blog
  • Journalists
  • Log In
  • Sign Up
  • Data Privacy
  • Send a Release
Cision PR Newswire: news distribution, targeting and monitoring home
  • News
  • Products
    • Overview
    • Distribution by PR Newswire
    • Cision Communications Cloud®
    • Cision IR
    • All Products
  • Contact
    • General Inquiries
    • Request a Demo
    • Editorial Bureaus
    • Partnerships
    • Media Inquiries
    • Worldwide Offices

 

When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
  • News in Focus
      • Browse News Releases
      • All News Releases
      • All Public Company
      • English-only


      • News Releases Overview
      • Multimedia Gallery
      • All Multimedia
      • All Photos
      • All Videos


      • Multimedia Gallery Overview
      • Trending Topics
      • All Trending Topics


  • Business & Money
      • Auto & Transportation
      • All Automotive & Transportation
      • Aerospace, Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads and Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking and Road Transportation


      • Auto & Transportation Overview
      • Business Technology
      • All Business Technology
      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors


      • Business Technology Overview
      • Entertain­ment & Media
      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television


      • Entertain­ment & Media Overview
      • Financial Services & Investing
      • All Financial Services & Investing
      • Accounting News & Issues
      • Acquisitions, Mergers and Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalization
      • Sales Reports
      • Shareholder Activism
      • Stock Offering
      • Stock Split
      • Venture Capital


      • Financial Services & Investing Overview
      • General Business
      • All General Business
      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Overseas Real Estate (non-US)
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls and Research
      • Trade Show News


      • General Business Overview
  • Science & Tech
      • Consumer Technology
      • All Consumer Technology
      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications


      • Consumer Technology Overview
      • Energy & Natural Resources
      • All Energy
      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil and Gas Discoveries
      • Utilities
      • Water Utilities


      • Energy & Natural Resources Overview
      • Environ­ment
      • All Environ­ment
      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters


      • Environ­ment Overview
      • Heavy Industry & Manufacturing
      • All Heavy Industry & Manufacturing
      • Aerospace & Defense
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation and Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking and Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco


      • Heavy Industry & Manufacturing Overview
      • Telecomm­unications
      • All Telecomm­unications
      • Carriers and Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications


      • Telecomm­unications Overview
  • Lifestyle & Health
      • Consumer Products & Retail
      • All Consumer Products & Retail
      • Animals & Pets
      • Beers, Wines and Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics and Personal Care
      • Fashion
      • Food & Beverages
      • Furniture and Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewelry
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys


      • Consumer Products & Retail Overview
      • Entertain­ment & Media
      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television


      • Entertain­ment & Media Overview
      • Health
      • All Health
      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine


      • Health Overview
      • Sports
      • All Sports
      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories


      • Sports Overview
      • Travel
      • All Travel
      • Amusement Parks and Tourist Attractions
      • Gambling & Casinos
      • Hotels and Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry


      • Travel Overview
  • Policy & Public Interest
      • Policy & Public Interest
      • All Policy & Public Interest
      • Advocacy Group Opinion
      • Animal Welfare
      • Congressional & Presidential Campaigns
      • Corporate Social Responsibility
      • Domestic Policy
      • Economic News, Trends, Analysis
      • Education
      • Environmental
      • European Government
      • FDA Approval
      • Federal and State Legislation
      • Federal Executive Branch & Agency
      • Foreign Policy & International Affairs
      • Homeland Security
      • Labor & Union
      • Legal Issues
      • Natural Disasters
      • Not For Profit
      • Patent Law
      • Public Safety
      • Trade Policy
      • U.S. State Policy


      • Policy & Public Interest Overview
  • People & Culture
      • People & Culture
      • All People & Culture
      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women


      • People & Culture Overview
      • In-Language News

      • español
      • português
      • Česko
      • Danmark
      • Deutschland
      • España
      • France
      • Italia
      • Nederland
      • Norge
      • Polska
      • Portugal
      • Россия
      • Slovensko
      • Suomi
      • Sverige
  • Overview
  • Distribution by PR Newswire
  • Cision Communications Cloud®
  • Cision IR
  • All Products
  • General Inquiries
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • PR Newswire: news distribution, targeting and monitoring
  • Send a Release
    • ALL CONTACT INFO

      Contact Us

      888-776-0942
      from 8 AM - 10 PM ET

  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR
  • News in Focus
    • Browse All News
    • Multimedia Gallery
    • Trending Topics
    • Send a Release
    • Sign Up
    • Log In
    • Resources
    • Blog
    • Journalists
    • RSS
    • GDPR
  • Business & Money
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
    • Send a Release
    • Sign Up
    • Log In
    • Resources
    • Blog
    • Journalists
    • RSS
    • GDPR
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
    • Send a Release
    • Sign Up
    • Log In
    • Resources
    • Blog
    • Journalists
    • RSS
    • GDPR
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
    • Send a Release
    • Sign Up
    • Log In
    • Resources
    • Blog
    • Journalists
    • RSS
    • GDPR
  • Policy & Public Interest
    • Send a Release
    • Sign Up
    • Log In
    • Resources
    • Blog
    • Journalists
    • RSS
    • GDPR
  • People & Culture
    • People & Culture
    • Send a Release
    • Sign Up
    • Log In
    • Resources
    • Blog
    • Journalists
    • RSS
    • GDPR
  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR
  • Overview
  • Distribution by PR Newswire
  • Cision Communications Cloud®
  • Cision IR
  • All Products
  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR
  • General Inquiries
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR

Sun Bancorp, Inc. Reports First Quarter 2012 Results


News provided by

Sun Bancorp, Inc.

Apr 24, 2012, 08:15 ET

Share this article


VINELAND, N.J., April 24, 2012 /PRNewswire/ -- Sun Bancorp, Inc. (NASDAQ: SNBC) reported today a net loss available to common shareholders of $28.1 million, or a loss of $0.34 per diluted share, for the first quarter ended March 31, 2012, compared to a net loss available to common shareholders of $67.1 million, or a loss of $1.25 per diluted share, for the first quarter of 2011. The 2011 period included a $53.1 million net loss on loans transferred to held-for-sale.

The following are key items and events that occurred during the first quarter:

  • Provision expense totaled $30.7 million as compared to $6.8 million in the fourth quarter of 2011. The allowance for loan losses equaled $52.1 million at quarter end, an increase of $10.5 million from December 31, 2011. The allowance for loan losses equaled 2.34% of gross loans held for investment and 45.5% of non-performing loans.
  • The net interest margin equaled 3.48% versus 3.54% in the linked quarter. Non-accrual interest reversals totaled $310 thousand in the first quarter which reduced the net interest margin by five basis points. Commercial loan production remained relatively strong at $65 million during the first quarter versus $40 million in the comparable prior year quarter.
  • Non-interest income decreased $1.3 million to $5.5 million as compared to the linked quarter primarily due to a prior quarter bank-owned life insurance distribution of $765 thousand and prior quarter gains of $280 thousand on the sale of investment securities.
  • Non-interest expense increased $338 thousand from the linked quarter to $27.6 million; however, the current quarter included approximately $1.0 million in costs associated with the build out of our mortgage operations. During the first quarter, 47 new mortgage employees were hired as the Company plans to enhance its residential mortgage platform and provide a significant boost to non-interest income.
  • Total risk-based capital equaled 14.45% at March 31, 2012, well above the regulatory required level.
  • The Company announced the consolidation of three retail branches to occur in the second quarter. This strategic decision provides cost efficiencies and enhances the Company's ability to streamline operations in the branch network while continuing to provide excellent customer service.

"We continued in this quarter to take proactive and appropriate actions to strengthen and grow the company. We were decisive in charging down the balance of previously identified, collateral dependent legacy real estate loans in our portfolio that we believe have lost value due to the devalued commercial real-estate market and increasing our reserve coverage ratios," said Thomas X. Geisel, Sun's President and Chief Executive Officer. "We were equally decisive in capitalizing on market opportunities to build our mortgage business and drive loan production in both our small business and commercial lending lines. We remain focused on making decisions that reinforce the strength of our portfolio, build our revenue stream and effectively serve customers while advancing the Sun brand."

Discussion of Results:

Balance Sheet

  • Total assets were $3.11 billion at March 31, 2012, as compared to $3.18 billion at December 31, 2011 and $3.33 billion at March 31, 2011.
  • Gross loans held-for-investment were $2.23 billion at March 31, 2012, as compared to $2.29 billion at December 31, 2011 and $2.27 billion at March 31, 2011. Compared to the linked quarter, loans held-for-investment decreased by $65.6 million due to paydowns and net charge-offs of $20.2 million in the first quarter.
  • Loans held-for-sale increased $1.8 million from the linked quarter-end to $25.0 million at March 31, 2012.
  • Shareholders' equity decreased $25.9 million to $283.2 million at March 31, 2012 as compared to the linked quarter-end.

Net Interest Income and Margin

  • On a tax equivalent basis, net interest income decreased $1.1 million over the linked quarter to $24.9 million. The average yield on interest-earning assets decreased eight basis points over the linked quarter from 4.23% to 4.15%. The average cost of interest-bearing liabilities decreased five basis points to 0.84%. The net interest margin declined six basis points to 3.48% from 3.54% for the linked quarter and increased 22 basis points as compared to the same prior year quarter.

Non-Interest Income

  • Non-interest income was $5.5 million for the quarter ended March 31, 2012, a decrease of $1.3 million from the linked quarter of $6.8 million and $9.6 million above the comparable prior year quarter loss of $4.1 million. The decrease from the linked quarter was primarily attributable to a bank-owned life insurance distribution of $765 thousand and gains on the sale of investment securities of $280 thousand, both of which were recorded in the linked quarter.

Non-Interest Expense

  • The Company incurred $27.6 million of non-interest expense in the first quarter of 2012, an increase of $338 thousand over the linked quarter and a decrease of $219 thousand from the comparable prior year quarter. Higher salary costs from the addition of new mortgage personnel were partially offset by lower occupancy, problem loan and advertising expenses. It is anticipated that the upfront costs associated with the build out of the mortgage operations will begin to be offset in the second quarter when the revenues are realized upon the sale of the first quarter mortgage production.

Asset Quality

  • The provision for loan losses for the first quarter was $30.7 million, as compared to $6.8 million in the linked quarter and $60.3 million in the comparable prior year quarter. The allowance for loan losses was $52.1 million at March 31, 2012, or 2.34% of gross loans held-for-investment, as compared to the allowance for loan losses to gross loans held-for-investment of 1.82% at December 31, 2011 and 2.58% at March 31, 2011.  Net charge-offs recorded in the current quarter were $20.2 million, or 0.89% of average loans, as compared to $20.4 million, or 0.87% of average loans for the linked quarter and $83.5 million, or 3.35% of average loans outstanding for the comparable prior year quarter. The prior year quarter included charge-offs of $69.4 million related to the fair value adjustment on loans transferred to held-for-sale.
  • Total non-performing assets were $118.8 million, or 5.27% of total gross loans held-for-investment, loans held-for-sale and real estate owned at March 31, 2012, as compared to $112.7 million, or 4.86% and $192.3 million, or 8.04%, respectively, at December 31, 2011 and March 31, 2011. Non-performing loans increased $6.9 million over the linked quarter to $114.6 million at March 31, 2012 from $107.7 million at December 31, 2011 and decreased $73.2 million from $187.8 million at March 31, 2011.

Capital

  • Stockholders' equity totaled $283.2 million at March 31, 2012 compared to $309.1 million at December 31, 2011. The Company's tangible equity to tangible assets ratio was 7.79% at March 31, 2012, as compared to 8.41% at December 31, 2011 and 7.27% at March 31, 2011.  At March 31, 2012, the Company's total risk-based capital ratio, Tier 1 capital ratio and leverage capital ratio were approximately 14.45%, 12.82%, and 10.21%, respectively.  At March 31, 2012, Sun National Bank's total risk-based capital ratio, Tier 1 capital ratio and leverage capital ratio were approximately 13.73%, 12.47%, and 9.93%, respectively. 

The Company will hold its regularly scheduled conference call on Wednesday, April 25, 2012, at 11:00 a.m. (ET).  Participants may listen to the live web cast through the Sun Bancorp, Inc. web site at www.sunnb.com.  Participants are advised to log on 10 minutes ahead of the scheduled start of the call.  An Internet-based replay will be available at the Web site for two weeks following the call.

Sun Bancorp, Inc. (Nasdaq: SNBC) is a $3.11 billion asset bank holding company headquartered in Vineland, New Jersey, with its executive offices located in Mt. Laurel, New Jersey. Its primary subsidiary is Sun National Bank, a full service Commercial Bank serving customers through 68 locations in New Jersey. Sun National Bank has been named one of Forbes Magazine's "Most Trustworthy Companies" for five years running.  The 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.sunnb.com.  

The foregoing material contains forward-looking statements concerning the financial condition, results of operations and business of the Company.  We caution that such statements are subject to a number of uncertainties and actual results could differ materially, and, therefore, readers should not place undue reliance on any forward-looking statements.  The Company does not undertake, and specifically disclaims, any obligation to publicly release the results of any revisions that may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

Non-GAAP Financial Measures

This release references tax-equivalent interest income and non-operating income and expenses. Tax-equivalent interest income is a non-GAAP financial measure. Tax-equivalent interest income assumes a 35% marginal federal tax rate for all periods. The fully taxable equivalent adjustments for the three months ended March 31, 2012, December 31, 2011 and March 31, 2011 were $233 thousand, $271 thousand and $409 thousand, respectively. Non-operating income (loss) is also a non-GAAP financial measure. Non-operating income (loss) includes impairment losses recognized on available for sale securities included in earnings. There were no non-operating income (loss) items for the three months ended March 31, 2012, December 31, 2011, September 30, 2011 and June 30, 2011.  Non-operating loss during the three months ended March 31, 2011 was $250 thousand.

SUN BANCORP, INC. AND SUBSIDIARIES



FINANCIAL HIGHLIGHTS (Unaudited)



(Dollars in thousands, except per share amounts)




For the Three Months Ended


March 31,


December 31,



2012


2011


2011


Profitability for the period:








    Net interest income


$

24,650


$

25,126


$

25,729


    Provision for loan losses



30,683



60,283



6,826


    Non-interest income (loss)



5,519



(4,099)



6,804


    Non-interest expense



27,564



27,782



27,226


    Loss before income taxes



(28,078)



(67,038)



(1,519)


    Net loss



(28,078)



(67,067)



(1,519)


    Net loss available to common shareholders


$

(28,078)


$

(67,067)


$

(1,519)













Financial ratios:











    Return on average assets(1) 



(3.56)%



(7.90)%



(0.19)%


    Return on average equity(1)



(35.97)%



(96.57)%



(1.96)%


    Return on average tangible equity(1),(2)



(41.97)%



(116.91)%



(2.29)%


    Net interest margin(1)



3.48%



3.26%



3.54%


    Efficiency ratio



91.37%



132.13%



83.69%


    Efficiency ratio, excluding non-operating income and non-operating expense(3)



91.37%



130.57%



83.69%













    Loss per common share:











        Basic


$

(0.34)


$

(1.25)


$

(0.02)


        Diluted 


$

(0.34)


$

(1.25)


$

(0.02)













    Average equity to average assets



9.90%



8.18%



9.62%




March 31,


December 31,




2012

2011


2011


At period-end:






    Total assets


$

3,113,269


$

3,333,808



3,183,916


    Total deposits



2,631,652



2,847,467



2,667,977


    Loans receivable, net of allowance for loan losses



2,173,427



2,211,824



2,249,455


    Loans held-for-sale



25,034



115,473



23,192


    Investments



576,457



470,546



532,715


    Borrowings



31,083



33,329



31,269


    Junior subordinated debentures



92,786



92,786



92,786


    Shareholders' equity



283,163



286,739



309,083













Credit quality and capital ratios:











    Allowance for loan losses to gross loans     held-for-investment



2.34%



2.58%



1.82%


    Non-performing assets to gross loans held-for-investment, loans held-for-sale and real estate owned



5.27%



8.05%



4.86%


    Allowance for loan losses to non-performing loans



45.52%



50.41%



38.69%













Total capital (to risk-weighted assets)(4) :











        Sun Bancorp, Inc.



14.45%



13.73%



15.22%


        Sun National Bank



13.73%



12.65%



13.39%


Tier 1 capital (to risk-weighted assets) (4):











        Sun Bancorp, Inc.



12.82%



12.11%



13.96%


        Sun National Bank



12.47%



11.38%



12.13%


Leverage ratio:











        Sun Bancorp, Inc.



10.21%



9.62%



11.09%


        Sun National Bank



9.93%



9.05%



9.64%













    Book value per common share


$

3.30


$

3.62


$

3.61


    Tangible book value per common share


$

2.78


$

3.02


$

3.08


(1) Amounts for the three and twelve months ended are annualized.


(2) Return on average tangible equity is computed by dividing annualized net income for the period by average tangible equity. Average tangible equity equals average equity less average identifiable intangible assets and goodwill.


(3) Efficiency ratio, excluding non-operating income and non-operating expense, is computed by dividing non-interest expense for the period by the summation of net interest income and non-interest income. Non-interest income for the three months ended March 31, 2011 excludes net impairment losses on available for sale securities of $250 thousand.


(4) March 31, 2012 capital ratios are estimated, subject to regulatory filings.























SUN BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited)

(Dollars in thousands, except par value amounts)


March 31,

2012


December 31, 2011


ASSETS





Cash and due from banks

$

79,106


$

68,773


Interest-earning bank balances


8,447



51,049


Cash and cash equivalents


87,553



119,822


Investment securities available for sale (amortized cost of $555,988 and $514,488 at March 31, 2012 and December 31, 2011, respectively)


559,599



515,545


Investment securities held to maturity (estimated fair value of $1,081 and $1,413 at March 31, 2012 and December 31, 2011, respectively)


1,012



1,344


Loans receivable (net of allowance for loan losses of $52,127 and $41,667 at March 31, 2012 and December 31, 2011, respectively)


2,173,427



2,249,455


Loans held-for-sale


25,034



23,192


Restricted equity investments


15,846



15,826


Bank properties and equipment, net


53,656



54,756


Real estate owned


4,165



5,020


Accrued interest receivable


8,561



8,912


Goodwill


38,188



38,188


Intangible assets


6,025



6,947


Deferred taxes, net


-



-


Bank owned life insurance (BOLI)


75,388



74,871


Other assets


64,815



70,038


Total assets

$

3,113,269


$

3,183,916









LIABILITIES AND SHAREHOLDERS' EQUITY







Liabilities:







Deposits

$

2,631,652


$

2,667,977


Securities sold under agreements to repurchase – customers


5,870



5,668


Advances from the Federal Home Loan Bank of New York (FHLBNY)


2,408



2,733


Securities sold under agreements to repurchase – FHLBNY


15,000



15,000


Obligations under capital lease


7,805



7,868


Junior subordinated debentures


92,786



92,786


Deferred taxes, net


1,475



432


Other liabilities


73,110



82,369


Total liabilities


2,830,106



2,874,833









Shareholders' equity:







Preferred stock, $1 par value, 1,000,000 shares authorized; none issued


-



-


Common stock, $1 par value, 200,000,000 shares authorized; 87,932,779 shares issued and 85,826,056 shares outstanding at March 31, 2012; 87,818,503 shares issued and 85,711,780 shares outstanding at December 31, 2011


87,924



87,825


Additional paid-in capital


505,057



504,508


Retained deficit


(285,598)



(257,520)


Accumulated other comprehensive income (loss)


2,135



625


Deferred compensation plan trust


(193)



(193)


Treasury stock at cost, 2,106,723 shares at December 31, 2011 and December 31, 2010


(26,162)



(26,162)


Total shareholders' equity


283,163



309,083


Total liabilities and shareholders' equity

$

3,113,269


$

3,183,916



 

SUN BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

(Dollars in thousands, except per share amounts)
















For the Three Months

Ended March 31,






2012



2011




INTEREST INCOME









Interest and fees on loans

$

26,204


$

28,428




Interest on taxable investment securities


2,542



2,619




Interest on non-taxable investment securities


434



759




Dividends on restricted equity investments


227



243




Total interest income


29,407



32,049




INTEREST EXPENSE









Interest on deposits


3,684



5,590




Interest on funds borrowed


351



355




Interest on junior subordinated debentures


722



978




Total interest expense


4,757



6,923




Net interest income


24,650



25,126




PROVISION FOR LOAN LOSSES


30,683



60,283




Net interest loss after provision for loan losses


(6,033)



(35,157)




NON-INTEREST INCOME









Service charges on deposit accounts


2,668



2,550




Other service charges


73



86




Gain on sale of loans


716



925




Impairment losses on available for sale securities


-



(250)




Loss on sale of AFS Securities


-



(1,013)




Investment products income


432



888




BOLI income


516



546




Derivative credit valuation adjustment


(314)



(8,391)




Other


1,428



560




Total non-interest income (loss)


5,519



(4,099)




NON-INTEREST EXPENSE









Salaries and employee benefits


14,771



12,986




Occupancy expense


3,049



3,404




Equipment expense


1,765



1,682




Amortization of intangible assets


921



921




Data processing expense


1,056



1,065




Professional fees


479



765




Insurance expense


1,479



2,013




Advertising expense


297



565




Problem loan costs


1,477



3,107




Real estate owned expense (income), net


81



(5)




Office supplies expense


319



345




Other expense


1,870



934




Total non-interest expense


27,564



27,782




LOSS BEFORE INCOME TAXES


(28,078)



(67,038)




INCOME TAX EXPENSE


-



29




NET LOSS AVAILABLE TO COMMON SHAREHOLDERS

$

(28,078)


$

(67,067)













Basic loss per share

$

(0.34)


$

(1.25)




Diluted loss per share

$

(0.34)


$

(1.25)




Weighted average shares – basic

85,776,858


53,575,346




Weighted average shares - diluted

85,776,858


53,575,346






















 

SUN BANCORP, INC. AND SUBSIDIARIES


HISTORICAL TRENDS IN QUARTERLY FINANCIAL DATA (Unaudited)


(Dollars in thousands)



2012


2011


2011


2011


2011



Q1


Q4


Q3


Q2


Q1


Balance sheet at quarter end: 











Cash and cash equivalents

$

87,553


$

119,822



134,209


$

192,645


$

266,504


Investment securities


576,457



532,715



557,380



478,814



470,546


Loans held-for-investment: 
















        Commercial and industrial


1,820,054



1,878,026



1,899,231



1,905,628



1,862,903


        Home equity 


219,926



224,517



230,098



234,688



232,318


        Second mortgage 


38,815



41,470



45,030



47,920



50,388


        Residential real estate 


109,807



100,438



82,967



75,546



69,311


        Other 


36,952



46,671



49,077



52,825



55,402


            Total gross loans held-for-investment


2,225,554



2,291,122



2,306,403



2,316,607



2,270,322


Allowance for loan losses 


(52,127)



(41,667)



(55,227)



(58,328)



(58,498)


            Net loans held-for-investment


2,173,427



2,249,455



2,251,176



2,258,279



2,211,824


   Loans held-for-sale


25,034



23,192



20,868



20,514



115,473


    Goodwill 


38,188



38,188



38,188



38,188



38,188


    Intangible assets


6,025



6,947



7,868



8,789



9,710


    Total assets 


3,113,269



3,183,916



3,236,219



3,213,790



3,333,808


    Total deposits


2,631,652



2,667,977



2,727,650



2,723,676



2,847,467


    Securities sold under agreements to repurchase - customers


5,870



5,668



6,026



6,743



6,591


    Advances from FHLBNY


2,408



2,733



3,054



3,372



3,687


    Securities sold under agreements to repurchase - FHLBNY


15,000



15,000



15,000



15,000



15,000


    Obligations under capital lease


7,805



7,868



7,930



7,991



8,051


    Junior subordinated debentures


92,786



92,786



92,786



92,786



92,786


    Total shareholders' equity


283,163



309,083



308,055



298,819



286,739


Quarterly average balance sheet: 
















    Loans(1): 
















        Commercial and industrial 

$

1,849,216


$

1,910,635


$

1,901,394


$

1,936,621



2,072,519


        Home equity


220,411



226,345



232,458



234,451



235,962


        Second mortgage 


41,346



44,600



47,844



50,257



53,402


        Residential real estate


123,567



111,514



89,010



76,816



73,662


        Other


41,733



46,248



49,361



52,831



55,847


            Total gross loans 


2,276,273



2,339,342



2,320,067



2,350,976



2,491,392


    Securities and other interest-earning assets 


580,349



602,485



616,679



643,808



639,092


    Total interest-earning assets 


2,856,622



2,941,827



2,936,746



2,994,784



3,130,484


    Total assets 


3,154,984



3,229,699



3,234,551



3,287,485



3,394,139


    Non-interest-bearing demand deposits 


487,088



536,558



528,505



491,235



481,605


    Total deposits 


2,621,736



2,706,772



2,716,542



2,774,767



2,904,448


    Total interest-bearing liabilities 


2,265,830



2,294,786



2,313,896



2,409,629



2,549,566


    Total shareholders' equity 


312,281



310,786



308,025



299,427



277,808


Capital and credit quality measures:
















Total capital (to risk-weighted assets) (2):
















        Sun Bancorp, Inc.


14.45%



15.22%



14.85%



14.51%



13.73%


        Sun National Bank


13.73%



13.39%



13.07%



12.97%



12.65%


    Tier 1 capital (to risk-weighted assets) (2):
















        Sun Bancorp, Inc.


12.82%



13.96%



13.59%



13.14%



12.11%


        Sun National Bank


12.47%



12.13%



11.81%



11.71%



11.38%


    Leverage ratio:
















        Sun Bancorp, Inc.


10.21%



11.09%



11.08%



10.47%



9.62%


        Sun National Bank


9.93%



9.64%



9.64%



9.35%



9.05%


















    Average equity to average assets


9.91%



9.62%



9.52%



9.11%



8.18%


    Allowance for loan losses to total gross loans held-for-investment 


 

2.34%



 

1.82%



2.39%



2.52%



2.58%


    Non-performing assets to gross loans held-for-investment, loans held-for-sale and real estate owned


5.27%



4.86%



6.04%



6.13%



 

 

8.04%


    Allowance for loan losses to non-performing loans held-for-investment


 

45.52%



 

38.69%



42.23%



45.25%



50.41%


















Other data:
















Net charge-offs


(20,223)



(20,386)



(5,809)



(5,006)



(83,498)


Non-performing assets:
















            Non-accrual loans

$

87,847


$

89,656


$

107,665


$

113,806


$

113,959


            Non-accrual loans held-for-sale


-



-



5,186



11,296



71,771


            Troubled debt restructurings, non-accrual


26,674



17,875



22,353



15,090



831


            Loans past due 90 days and accruing


74



154



744



-



1,263


            Real estate owned, net 


4,165



5,020



4,893



3,306



4,439


                Total non-performing assets


118,760



112,705



140,841



143,498



192,263


        Troubled debt restructuring, performing


-



-



-



-



20,276


(1)     Average balances include non-accrual loans and loans held-for-sale

(2)     March 31, 2012 capital ratios are estimated, subject to regulatory filings.


SUN BANCORP, INC. AND SUBSIDIARIES



HISTORICAL TRENDS IN QUARTERLY FINANCIAL DATA (Unaudited)



(Dollars in thousands, except share and per share amounts)




2012


2011


2011


2011


2011




Q1


Q4


Q3


Q2


Q1



Profitability for the quarter:












Tax-equivalent interest income

$

29,641


$

31,087


$

31,802


$

32,673


$

32,458



Interest expense


4,758



5,087



5,329



5,813



6,923



Tax-equivalent net interest income


24,883



26,000



26,473



26,860



25,535



Tax-equivalent adjustment


233



271



292



368



409



Provision for loan losses


30,683



6,826



2,321



4,836



60,283



Non-interest income (loss) excluding net impairment losses on available for sale securities


5,519



6,804



5,770



4,993



(3,849)



Net impairment losses on available for sale securities


-



-



-



-



(250)



Non-interest expense excluding amortization of intangible assets


26,643



26,305



26,051



27,323



26,861



Amortization of intangible assets


921



921



922



921



921



(Loss) income before income taxes


(28,078)



(1,519)



2,657



(1,595)



(67,038)



Income tax (benefit) expense


-



-



(23)



4



29



Net (loss) income


(28,078)



(1,519)



2,680



(1,599)



(67,067)



Net (loss) income available to common shareholders

$

 

(28,078)


$

 

(1,519)


$

2,680


$

(1,599)


$

(67,067)



Financial ratios:

















Return on average assets (1)


(3.56)%



(0.19)%



0.33%



(0.19)%



(7.90)%





Return on average equity (1)


(35.97)%



(1.96)%



3.48%



(2.14)%



(96.57)%





Return on average tangible equity (1),(2)


(41.97)%



(2.29)%



4.10%



(2.54)%



(116.91)%





Net interest margin (1)


3.48%



3.54%



3.61%



3.59%



3.26%





Efficiency ratio


91.37%



83.69%



84.42%



89.71%



132.13%





Efficiency ratio, excluding non-operating income and non-operating expense


91.37%



83.69%



84.42%



89.71%



130.57%





Per share data:



















Income (loss) per common share:



















Basic

$

(0.34)


$

(0.02)


$

0.03


$

(0.02)


$

(1.25)





Diluted

$

(0.34)


$

(0.02)


$

0.03


$

(0.02)


$

(1.25)





Book value

$

3.30


$

3.61


$

3.60


$

3.60


$

3.62





Tangible book value

$

2.78


$

3.08


$

3.06


$

3.03


$

3.02





Average basic shares

85,776,858


85,587,878


84,429,644


82,585,859


53,575,346





Average diluted shares

85,776,858


85,587,878


84,538,449


82,585,859


53,575,346





Operating non-interest income (loss):



















Service charges on deposit accounts

$

2,668



2,799



2,838


$

2,702


$

2,550





Other service charges


73



71



85



88



86





Gain on sale of loans


716



906



708



708



925





Net gain (loss) on sale of available for sale securities


-



280



-



2,421



(1,013)





Investment products income


432



453



562



1,010



888





BOLI income


516



1,309



549



560



546





Derivative credit valuation adjustment


(314)



(214)



(309)



(3,624)



(8,391)





Other income


1,428



1,200



1,337



1,128



560





        Total operating non-interest income (loss)


5,519



6,804



5,770



4,993



(3,849)





Non-operating loss(3):



















Net impairment losses on available for sale securities recognized in earnings


-



-



-



-



(250)





        Total non-operating loss


-



-



-



-



(250)





        Total non-interest income (loss)

$

5,519


$

6,804



5,770


$

4,993


$

(4,099)





Operating non-interest expense:

















    Salaries and employee benefits

$

14,771


$

13,011


$

13,619


$

12,885


$

12,986



    Occupancy expense


3,049



3,643



3,021



3,305



3,404



    Equipment expense


1,765



1,858



1,899



1,903



1,682



    Data processing expense


1,056



1,118



1,058



1,111



1,065



    Amortization of intangible assets


921



921



922



921



921



    Insurance expense


1,479



1,433



1,479



1,261



2,013



    Professional fees


479



412



879



1,215



765



    Advertising expense


297



664



395



1,322



565



    Problem loan costs


1,477



1,866



1,506



1,863



3,107



    Real estate owned expense (income),net


81



108



448



635



(5)



    Office supplies expense


319



323



315



324



345



    Other expense


1,870



1,869



1,432



1,499



934



       Total non-interest expense


27,564



27,226



26,973



28,244



27,782



(1) Amounts are annualized.



(2) Return on average tangible equity is computed by dividing annualized net income for the period by average tangible equity. Average tangible equity equals average equity less average identifiable intangible assets and goodwill.



(3) Amount consists of items which the Company believes are not a result of normal operations.

























SUN BANCORP, INC. AND SUBSIDIARIES


AVERAGE BALANCE SHEETS (Unaudited)

(Dollars in thousands)







 For the Three Months Ended March 31,



2012



2011



Average


Income/


Yield/



Average


Income/


Yield/



Balance


Expense


Cost



Balance


Expense


Cost


Interest-earning assets:














Loans receivable (1),(2):














Commercial and industrial

$

1,849,216


$

21,275



4.60%



$

2,072,519


$

23,152



4.47%


Home equity


220,411



2,244



4.07




235,962



2,550



4.32


Second mortgage


41,346



590



5.71




53,402



775



5.81


Residential real estate


123,567



1,376



4.45




73,662



1,005



5.46


Other


41,733



719



6.89




55,847



946



6.78


Total loans receivable


2,276,273



26,204



4.60




2,491,392



28,428



4.56


Investment securities(3)


550,498



3,420