Sun Bancorp Reports First Quarter Earnings

Apr 23, 2001, 01:00 ET from Sun Bancorp, Inc.

    VINELAND, N.J., April 23 /PRNewswire/ -- Sun Bancorp, Inc. (Nasdaq:   SNBC),
 the multi-state bank holding company based in Vineland, New Jersey, today
 reported net income of $2.0 million or $.20 per share for the first quarter
 2001, excluding an after-tax charge of approximately $700 thousand due to
 additional loan loss provision and the accrual of severance cost.  Including
 these charges, net income was
 $1.3 million or $.13 per share.  In addition, Sun reported record total loans
 and deposits, according to the announcement made by Bernard A. Brown, Chairman
 of the Board.
     Sun Bancorp posted net income of $1.3 million, or $.13 per share, for the
 three months ended March 31, 2001, compared to $2.3 million or $.25 per share,
 for the same period in 2000.  Sun's cash earnings per share was $.22 for the
 three months ended March 31, 2001, compared to cash earnings per share of $.37
 for the first quarter of the previous year.
     At March 31, 2001, total assets were $1.95 billion compared to
 $2.05 billion at March 31, 2000.  During the first quarter 2001, the Company
 continued its strategy to reduce its interest rate risk and improve its
 capital and liquidity positions by reducing its investment securities from
 $879 million at March 31, 2000, to $723 million at March 31, 2001.  Net loans
 increased to $1.05 billion at March 31, 2001, from $962 million at March 31,
 2000, an increase of $91 million, or 9%.  Total deposits were $1.42 billion at
 March 31, 2001, compared to $1.33 billion at March 31, 2000, an increase of
 7%.  Total borrowings decreased $217 million from $553 million at March 31,
 2000, to $336 million at March 31, 2001.  Total Capital increased $30 million
 or 31% from March 31, 2000 to March 31, 2001.
     Net interest income decreased for the first quarter of 2001 to
 $14.5 million from $15.3 million, due primarily from the overall decrease in
 interest rates from the first quarter 2000 to the same period in 2001 and from
 the reduction in the average balances of investments and borrowings.  Thomas
 A. Bracken, President and CEO, stated, "While de-leveraging the balance sheet
 by reducing investments and borrowings, we continued to focus on growing our
 core business and strengthening our Capital during the first quarter of 2001."
     The provision for loan losses increased from $785 thousand during the
 quarter ended March 31, 2000 to $1.3 million during the same 2001 period.
 "This increase is a result of continued loan growth and the recognition of the
 challenges facing borrowers in the current economy," Bracken commented.
 "Management is confident in the overall quality of Sun's loan portfolio."
     Sun Bancorp, Inc. is a multi-state bank holding company located in
 Vineland, New Jersey.  Its primary subsidiaries, Sun National Bank and Sun
 National Bank, Delaware, serve customers through 72 community banking centers
 located in Southern and Central New Jersey, in the contiguous New Castle
 market in Delaware, and in Philadelphia, Pennsylvania.  The Company's common
 stock is traded in the Nasdaq National Market under the symbol, "SNBC."  The
 deposits of the Banks are insured to the legal maximum by the Federal Deposit
 Insurance Corporation.
 
     The foregoing material may contain forward-looking statements.  We caution
 that such statements maybe 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.  Sun Bancorp, Inc. 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.
 
 
                   SUN BANCORP REPORTS FIRST QUARTER EARNINGS
                                 April 23, 2001
 
     SELECTED BALANCE SHEET DATA
     (Unaudited)                              March 31,  December 31, March 31,
                                                2001        2000        2000
     (In thousands, except per share data)
 
     Cash and cash equivalents                 $67,610      69,617     $74,896
     Investments                               723,182     778,804     879,495
     Net loans                               1,052,756   1,031,694     962,114
     Allowance for loan losses                  11,036      10,636       9,390
     Real estate owned                           1,008       1,179         671
     Excess of cost over fair value of
      assets acquired, net                      50,870      52,839      58,749
     Total Assets                           $1,951,107  $2,002,529  $2,045,014
     Total Deposits                          1,420,813   1,410,867   1,331,168
     Advances from the Federal Home Loan
      Bank                                      49,100      49,133     119,231
     Other borrowed funds                        1,160       1,160       6,460
     Securities sold under agreements to
      repurchase                               285,746     356,986     426,887
     Guaranteed preferred beneficial
      interest in Company's
       subordinated debt                        57,327      57,327      57,327
     Total Capital                             125,999     117,634      96,012
     Book value per share (A)                   $12.85      $12.03       $9.96
 
 
     SELECTED INCOME STATEMENT DATA (Unaudited)
 
                                                   Three months ended
                                            March 31,    Dec. 31,   March 31,
                                              2001         2000       2000
 
     Interest income                         $34,952     $39,025     $35,974
     Interest expense                         20,471      23,726      20,678
     Net interest income                      14,481      15,299      15,296
     Provision for loan losses                 1,296         585         785
     Other income                              2,236       1,812       2,271
     Other expense                            13,629      13,096      13,501
     Income taxes                                510       1,024         969
     Net income                               $1,282      $2,406      $2,312
 
     Net income per common share:
        Basic (A)                              $0.13       $0.25       $0.24
        Diluted (A)                            $0.13       $0.24       $0.23
     Cash earnings per common share
      (after tax effect) (B):
        Basic (A)                              $0.23       $0.38       $0.37
        Diluted (A)                            $0.22       $0.37       $0.37
 
 
     SELECTED RATIOS (Unaudited) (B)(C)      At or for the three months ended
                                             March 31,    Dec. 31,   March 31,
                                               2001        2000        2000
 
     Return on average assets                  0.26%       0.47%       0.46%
     Cash basis return on average assets       0.45%       0.72%       0.72%
     Return on average equity                  4.24%       8.59%      10.30%
     Cash basis return on average equity       7.31%      13.23%      16.10%
     Net interest margin                       3.25%       3.26%       3.45%
     Equity to assets                          6.46%       5.87%       4.69%
     Non-performing assets to total loans
        and other real estate owned            0.53%       0.57%       0.36%
     Total allowance for loan losses to
        non-performing loans                 238.80%     221.17%     337.28%
 
 
     (A) Data for March 31, 2000 is adjusted for a 5% stock dividend paid
          in June 2000.
 
     (B) The Company's cash basis data and ratios are determined by adding
          back to reported net income the non-cash amortization of
          intangible assets net of associated tax benefits.
 
     (C) Annualized, where appropriate.
 
 
     Average Balance Sheet              Three months ended March 31, 2001
      (Unaudited)
      (Dollars in thousands)        Average                         Average
                                    Balance         Interest       Yield/Cost
     Interest-earning assets:
      Loans receivable (A)        $1,054,631         $22,732          8.62%
      Investment securities (B)      743,118          12,244          6.59
      Federal funds sold              16,473             225          5.46
      Total interest-earning
       assets                     $1,814,222         $35,201          7.76
 
     Non-interest-earning assets     145,237
 
       Total assets               $1,959,459
 
     Interest-bearing liabilities:
      Interest-bearing
       deposit accounts           $1,168,556         $13,988          4.79%
      Borrowed money                 360,505           5,123          5.68
      Guaranteed preferred
       beneficial interest in
       Company's subordinated debt    57,327           1,360          9.49
      Total interest-bearing
       liabilities                 1,586,388          20,471          5.16
 
 
     Non-interest-bearing
      liabilities                    252,218
       Total liabilities           1,838,606
 
     Shareholders' equity            120,853
 
     Total liabilities and
      stockholders' equity        $1,959,459
 
 
     Net interest income                             $14,730
     Interest rate spread (C)                                        2.60%
     Net yield on interest
      earning assets (D)                                             3.25%
     Ratio of average interest-
      earning assets to average
      interest-bearing liabilities                                 114.36%
 
 
                                       Three months ended March 31, 2000
 
                                    Average                         Average
                                    Balance         Interest       Yield/Cost
     Interest-earning assets:
      Loans receivable (A)          $939,256         $20,638          8.79%
      Investment securities (B)      874,499          15,677          7.17
      Federal funds sold               1,090              15          5.51
      Total interest-earning
       assets                     $1,814,845         $36,330          8.01
 
     Non-interest-earning assets     185,944
       Total assets               $2,000,789
 
     Interest-bearing liabilities:
       Interest-bearing deposit
        accounts                  $1,072,410         $11,474          4.28%
       Borrowed money                539,358           7,845          5.82
       Guaranteed preferred
        beneficial interest in
        Company's subordinated debt   57,396           1,359          9.47
       Total interest-bearing
        liabilities               $1,669,164         $20,678          4.96
 
     Non-interest-bearing
      liabilities                    241,853
       Total liabilities          $1,911,017
 
     Shareholders' equity             89,772
 
     Total liabilities and
      stockholders' equity        $2,000,789
 
     Net interest income                             $15,652
 
     Interest rate spread (C)                                        3.05%
     Net yield on interest-
      earning assets (D)                                             3.45%
     Ratio of average interest-
      earning assets to average
      interest-bearing liabilities                                 108.73%
 
     (A)  Average balances include non-accrual loans.
 
     (B)  Interest earned on non-taxable investment securities is shown on a
           tax equivalent basis assuming a 34% marginal federal tax rate for
           all periods.
 
     (C)  Interest rate spread represents the difference between the average
          yield on interest-earning assets and the average cost of interest-
          bearing liabilities.
 
     (D) Net yield on interest-earning assets represents net interest income as
         a percentage of average interest-earning assets.
 
 

SOURCE Sun Bancorp, Inc.
    VINELAND, N.J., April 23 /PRNewswire/ -- Sun Bancorp, Inc. (Nasdaq:   SNBC),
 the multi-state bank holding company based in Vineland, New Jersey, today
 reported net income of $2.0 million or $.20 per share for the first quarter
 2001, excluding an after-tax charge of approximately $700 thousand due to
 additional loan loss provision and the accrual of severance cost.  Including
 these charges, net income was
 $1.3 million or $.13 per share.  In addition, Sun reported record total loans
 and deposits, according to the announcement made by Bernard A. Brown, Chairman
 of the Board.
     Sun Bancorp posted net income of $1.3 million, or $.13 per share, for the
 three months ended March 31, 2001, compared to $2.3 million or $.25 per share,
 for the same period in 2000.  Sun's cash earnings per share was $.22 for the
 three months ended March 31, 2001, compared to cash earnings per share of $.37
 for the first quarter of the previous year.
     At March 31, 2001, total assets were $1.95 billion compared to
 $2.05 billion at March 31, 2000.  During the first quarter 2001, the Company
 continued its strategy to reduce its interest rate risk and improve its
 capital and liquidity positions by reducing its investment securities from
 $879 million at March 31, 2000, to $723 million at March 31, 2001.  Net loans
 increased to $1.05 billion at March 31, 2001, from $962 million at March 31,
 2000, an increase of $91 million, or 9%.  Total deposits were $1.42 billion at
 March 31, 2001, compared to $1.33 billion at March 31, 2000, an increase of
 7%.  Total borrowings decreased $217 million from $553 million at March 31,
 2000, to $336 million at March 31, 2001.  Total Capital increased $30 million
 or 31% from March 31, 2000 to March 31, 2001.
     Net interest income decreased for the first quarter of 2001 to
 $14.5 million from $15.3 million, due primarily from the overall decrease in
 interest rates from the first quarter 2000 to the same period in 2001 and from
 the reduction in the average balances of investments and borrowings.  Thomas
 A. Bracken, President and CEO, stated, "While de-leveraging the balance sheet
 by reducing investments and borrowings, we continued to focus on growing our
 core business and strengthening our Capital during the first quarter of 2001."
     The provision for loan losses increased from $785 thousand during the
 quarter ended March 31, 2000 to $1.3 million during the same 2001 period.
 "This increase is a result of continued loan growth and the recognition of the
 challenges facing borrowers in the current economy," Bracken commented.
 "Management is confident in the overall quality of Sun's loan portfolio."
     Sun Bancorp, Inc. is a multi-state bank holding company located in
 Vineland, New Jersey.  Its primary subsidiaries, Sun National Bank and Sun
 National Bank, Delaware, serve customers through 72 community banking centers
 located in Southern and Central New Jersey, in the contiguous New Castle
 market in Delaware, and in Philadelphia, Pennsylvania.  The Company's common
 stock is traded in the Nasdaq National Market under the symbol, "SNBC."  The
 deposits of the Banks are insured to the legal maximum by the Federal Deposit
 Insurance Corporation.
 
     The foregoing material may contain forward-looking statements.  We caution
 that such statements maybe 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.  Sun Bancorp, Inc. 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.
 
 
                   SUN BANCORP REPORTS FIRST QUARTER EARNINGS
                                 April 23, 2001
 
     SELECTED BALANCE SHEET DATA
     (Unaudited)                              March 31,  December 31, March 31,
                                                2001        2000        2000
     (In thousands, except per share data)
 
     Cash and cash equivalents                 $67,610      69,617     $74,896
     Investments                               723,182     778,804     879,495
     Net loans                               1,052,756   1,031,694     962,114
     Allowance for loan losses                  11,036      10,636       9,390
     Real estate owned                           1,008       1,179         671
     Excess of cost over fair value of
      assets acquired, net                      50,870      52,839      58,749
     Total Assets                           $1,951,107  $2,002,529  $2,045,014
     Total Deposits                          1,420,813   1,410,867   1,331,168
     Advances from the Federal Home Loan
      Bank                                      49,100      49,133     119,231
     Other borrowed funds                        1,160       1,160       6,460
     Securities sold under agreements to
      repurchase                               285,746     356,986     426,887
     Guaranteed preferred beneficial
      interest in Company's
       subordinated debt                        57,327      57,327      57,327
     Total Capital                             125,999     117,634      96,012
     Book value per share (A)                   $12.85      $12.03       $9.96
 
 
     SELECTED INCOME STATEMENT DATA (Unaudited)
 
                                                   Three months ended
                                            March 31,    Dec. 31,   March 31,
                                              2001         2000       2000
 
     Interest income                         $34,952     $39,025     $35,974
     Interest expense                         20,471      23,726      20,678
     Net interest income                      14,481      15,299      15,296
     Provision for loan losses                 1,296         585         785
     Other income                              2,236       1,812       2,271
     Other expense                            13,629      13,096      13,501
     Income taxes                                510       1,024         969
     Net income                               $1,282      $2,406      $2,312
 
     Net income per common share:
        Basic (A)                              $0.13       $0.25       $0.24
        Diluted (A)                            $0.13       $0.24       $0.23
     Cash earnings per common share
      (after tax effect) (B):
        Basic (A)                              $0.23       $0.38       $0.37
        Diluted (A)                            $0.22       $0.37       $0.37
 
 
     SELECTED RATIOS (Unaudited) (B)(C)      At or for the three months ended
                                             March 31,    Dec. 31,   March 31,
                                               2001        2000        2000
 
     Return on average assets                  0.26%       0.47%       0.46%
     Cash basis return on average assets       0.45%       0.72%       0.72%
     Return on average equity                  4.24%       8.59%      10.30%
     Cash basis return on average equity       7.31%      13.23%      16.10%
     Net interest margin                       3.25%       3.26%       3.45%
     Equity to assets                          6.46%       5.87%       4.69%
     Non-performing assets to total loans
        and other real estate owned            0.53%       0.57%       0.36%
     Total allowance for loan losses to
        non-performing loans                 238.80%     221.17%     337.28%
 
 
     (A) Data for March 31, 2000 is adjusted for a 5% stock dividend paid
          in June 2000.
 
     (B) The Company's cash basis data and ratios are determined by adding
          back to reported net income the non-cash amortization of
          intangible assets net of associated tax benefits.
 
     (C) Annualized, where appropriate.
 
 
     Average Balance Sheet              Three months ended March 31, 2001
      (Unaudited)
      (Dollars in thousands)        Average                         Average
                                    Balance         Interest       Yield/Cost
     Interest-earning assets:
      Loans receivable (A)        $1,054,631         $22,732          8.62%
      Investment securities (B)      743,118          12,244          6.59
      Federal funds sold              16,473             225          5.46
      Total interest-earning
       assets                     $1,814,222         $35,201          7.76
 
     Non-interest-earning assets     145,237
 
       Total assets               $1,959,459
 
     Interest-bearing liabilities:
      Interest-bearing
       deposit accounts           $1,168,556         $13,988          4.79%
      Borrowed money                 360,505           5,123          5.68
      Guaranteed preferred
       beneficial interest in
       Company's subordinated debt    57,327           1,360          9.49
      Total interest-bearing
       liabilities                 1,586,388          20,471          5.16
 
 
     Non-interest-bearing
      liabilities                    252,218
       Total liabilities           1,838,606
 
     Shareholders' equity            120,853
 
     Total liabilities and
      stockholders' equity        $1,959,459
 
 
     Net interest income                             $14,730
     Interest rate spread (C)                                        2.60%
     Net yield on interest
      earning assets (D)                                             3.25%
     Ratio of average interest-
      earning assets to average
      interest-bearing liabilities                                 114.36%
 
 
                                       Three months ended March 31, 2000
 
                                    Average                         Average
                                    Balance         Interest       Yield/Cost
     Interest-earning assets:
      Loans receivable (A)          $939,256         $20,638          8.79%
      Investment securities (B)      874,499          15,677          7.17
      Federal funds sold               1,090              15          5.51
      Total interest-earning
       assets                     $1,814,845         $36,330          8.01
 
     Non-interest-earning assets     185,944
       Total assets               $2,000,789
 
     Interest-bearing liabilities:
       Interest-bearing deposit
        accounts                  $1,072,410         $11,474          4.28%
       Borrowed money                539,358           7,845          5.82
       Guaranteed preferred
        beneficial interest in
        Company's subordinated debt   57,396           1,359          9.47
       Total interest-bearing
        liabilities               $1,669,164         $20,678          4.96
 
     Non-interest-bearing
      liabilities                    241,853
       Total liabilities          $1,911,017
 
     Shareholders' equity             89,772
 
     Total liabilities and
      stockholders' equity        $2,000,789
 
     Net interest income                             $15,652
 
     Interest rate spread (C)                                        3.05%
     Net yield on interest-
      earning assets (D)                                             3.45%
     Ratio of average interest-
      earning assets to average
      interest-bearing liabilities                                 108.73%
 
     (A)  Average balances include non-accrual loans.
 
     (B)  Interest earned on non-taxable investment securities is shown on a
           tax equivalent basis assuming a 34% marginal federal tax rate for
           all periods.
 
     (C)  Interest rate spread represents the difference between the average
          yield on interest-earning assets and the average cost of interest-
          bearing liabilities.
 
     (D) Net yield on interest-earning assets represents net interest income as
         a percentage of average interest-earning assets.
 
 SOURCE  Sun Bancorp, Inc.