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.
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SOURCE Sun Bancorp, Inc.