MOUNT LAUREL, N.J.,
Oct. 22, 2014 /PRNewswire/ --
Third Quarter Highlights
- Significant progress in executing comprehensive strategic
restructuring initiative.
- Successfully exited mortgage banking business, asset based
lending and other high-risk loan relationships.
- Non-interest expense fell 27% to $24.1
million versus $32.9 million
in the year ago quarter.
- Successful completion of $20
million common equity raise: Sun Bancorp, Inc. Tier 1
Leverage Ratio increased to 9.8%.
- Planned balance sheet reduction led to a $180 million decline in loans during the
quarter.
- Average interest-earning cash balances grew by 67% during the
quarter to $406 million.
- Continued improvement in asset quality as non-performing loans
held-for-investment fell to $14.1
million, or 0.8% of loans, from $55.4
million, or 2.6% of loans, one year ago.
Sun Bancorp, Inc. (NASDAQ: SNBC) (the "Company"), the holding
company for Sun National Bank (the
"Bank"), reported today a net loss of $825
thousand, or a loss of $0.05
per diluted share, for the quarter ended September 30, 2014, compared to a net loss of
$24.2 million, or a loss of
$1.39 per diluted share, and a net
loss of $4.9 million, or a loss of
$0.28 per diluted share, for the
second quarter of 2014 and the third quarter of 2013,
respectively. On a pre-tax basis, the Company had a loss of
$516 thousand for the quarter ended
September 30, 2014, compared to a
pre-tax loss of $23.9 million and a
pre-tax loss of $4.9 million for the
second quarter of 2014 and the third quarter of 2013,
respectively.
"During the third quarter, we successfully executed on all
facets of our restructuring plans, and are now witnessing the
initial impact. While there remains much work ahead, we have
made significant, transformational progress towards achieving the
platform that will support our long-term success," said President
& CEO Thomas M. O'Brien.
"We have aggressively confronted both the substantial legacy
barriers to performance, and at the same time have started to build
a platform that can support meaningful revenue generation and
growth."
Discussion of Results:
Balance Sheet
The Company continues to execute on its previously stated
objective of shrinking the balance sheet. Overall in the
third quarter, the Company reduced assets by $74.8 million. This included reductions of
$179.7 million in gross loans
held-for-investment, $21.8 million in
loans held-for-sale and $29.0 million
in investments, partially offset by an increase of $173.9 million in cash and cash equivalents.
Deposit balances declined by $102.1
million in the third quarter of 2014 to $2.17 billion due to planned deposit run-off,
primarily related to public funds balances.
"Although we have experienced a year over year reduction in
overall deposit balances, this was planned as certain
non-strategic, higher rate deposit segments were re-priced.
We are continuing to emphasize building profitable business
relationships with our commercial and consumer clients and we are
pleased with the progress in this respect," said O'Brien.
The Company had $26.3 million in
loans held-for-sale and $192.1
million in deposits held-for-sale at September 30, 2014 related to the pending sale of
seven branches to Sturdy Savings Bank which is scheduled to close
in the first quarter of 2015. Sturdy Savings Bank recently
received all regulatory approval required for the acquisition of
the branches and systems conversion planning has begun. A
first quarter 2015 transaction close remains the target.
Net Interest Income and Margin
The net interest margin declined 16 basis points to 2.87% for
the three months ended September 30,
2014 from 3.03% in the linked quarter as commercial loan
balances continue to decline and the Company's cash balances remain
elevated. Average interest-earning deposits grew to
$405.8 million, up $162.8 million from the linked quarter.
With the elevated level of loan payoffs, we saw an increase in
prepayment penalties during the quarter which had a positive impact
on net interest income. Prepayment penalties totaled
approximately $691 thousand in the
quarter which boosted the net interest margin by 11 basis
points. These fees offset what would have been a larger
decrease in net interest income for the quarter. We expect to
see prepayment penalty revenue decline in the coming quarters as
payoffs normalize.
"The plan to significantly de-risk the loan portfolio inevitably
leads to building liquidity. It is a price that we fully
anticipated and one that we believe is entirely prudent given the
circumstances. While our liquidity levels are expected to
remain elevated, we have begun to build a focused commercial
lending platform through which we can begin to deploy our excess
cash balances into quality commercial loans," said O'Brien.
"With new commercial banking leadership, as well as enhanced
lending teams based in Edison,
N.J. and Manhattan, the
Bank is preparing for future loan growth."
Non-Interest Income
Non-interest income was $4.7
million for the quarter ended September 30, 2014, as compared to $4.0 million for the quarter ended June 30, 2014 and $5.8
million for the comparable prior year quarter. The increase
from the linked quarter of $718
thousand was primarily attributable to $1.2 million of negative derivative credit
valuation adjustments in the prior quarter associated with
commercial loan sales. Net mortgage banking income declined by
$106 thousand from the second quarter
of 2014 to $423 thousand for the
third quarter of 2014 as the Company continues the orderly unwind
of Sun Home Loans. The decrease in non-interest income from the
prior year quarter is due primarily to a decline in net mortgage
banking revenue. Mortgage banking income is anticipated to
fall to zero in future periods. Going forward, a large
percentage of non-interest income is expected to be derived from
deposit fees and alternative investment fees which totaled
$2.9 million in the third quarter of
2014.
Non-Interest Expense
Non-interest expense for the third quarter of 2014 was
$24.1 million, a decrease of
$9.3 million from the second quarter
of 2014 and $8.8 million from the
comparable prior year quarter. Salaries and benefits expense
declined by $5.0 million from the
second quarter due primarily to the severance charges recorded in
the prior quarter as well as the overall impact of the previously
announced workforce reduction. The remaining decline in
non-interest expense from the linked quarter is primarily due to
prior period restructuring costs, loan sale transaction fees and
the overall beneficial impact of ongoing expense reduction
efforts.
"As we conclude the restructuring and corrective actions by
2015, our quarterly non-interest expense is anticipated to be
approximately $20 million," said
O'Brien. "While we've seen the initial results of the
restructuring initiatives including bulk loan sales, capital raise,
branch count reductions, and the exit of healthcare, asset-based
lending, and mortgage banking businesses, our expenses still
remain elevated in the short term since we are supporting
activities tied to the conclusion of our restructuring efforts,
including the pending sale of our Cape
May locations, which is anticipated to close in the first
quarter of 2015, as well as higher compliance-related costs related
to our regulatory agreement."
Asset Quality
Asset quality metrics remained strong with low levels of problem
loans. The Bank's non-performing loans held-for-investment
were essentially flat at $14.1
million at September 30, 2014
as compared to the prior quarter and non-performing loans
held-for-investment to total loans were stable at 0.8%.
During the third quarter, the Company completed the sale of
$15.8 million of problem consumer
loans that were placed into held-for-sale at June 30, 2014 as part of the balance sheet
restructuring. During the third quarter of 2014, the Company
incurred an additional write down of $707
thousand for the remaining home equity loans in
held-for-sale which have a balance of $2.8
million at September 30,
2014. The Company is actively marketing this small portfolio
for sale.
There was no provision expense recorded during the third quarter
of 2014 compared to $14.8 million of
provision expense in the linked quarter. Net charge-offs were
$1.9 million in the three months
ended September 30, 2014 as compared
to $20.2 million in the second
quarter of 2014 and net recoveries of $123
thousand in the third quarter of 2013. The impact of the net
charge-offs was directly offset by a decrease in required reserves
as a result of the overall reduction in loan balances noted
above. The allowance for loan losses was $26.5 million, or 1.58% of gross loans
held-for-investment, at September 30,
2014, as compared to $28.4
million, or 1.53% of gross loans held-for-investment, at
June 30 2014 and $35.5 million, or 1.66% of gross loans
held-for-investment, at December 31,
2013.
Capital
In the third quarter, the Company announced the successful
completion of a $20 million capital
raise. At September 30, 2014,
the capital ratios of the Company and the Bank continued to exceed
the levels mandated by the Federal Reserve and the Office of the
Comptroller of the Currency, respectively. At September 30, 2014, the Bank's total risk-based
capital ratio, Tier 1 capital ratio and leverage capital ratio were
approximately 16.2%, 14.9%, and 9.4%, respectively. At
September 30, 2014, the Company's
total risk-based capital ratio, Tier 1 capital ratio and leverage
capital ratio were approximately 17.9%, 15.5%, and 9.8%,
respectively. The Company's tangible equity to tangible
assets ratio was 7.5% at September 30,
2014, as compared to 6.6% at June
30, 2014.
The Company will hold a conference call on Thursday, October 23, 2014 at 11:00 AM (EST) to discuss results and answer
questions from analysts and investors. Participants may
listen to or participate in the Company's earnings conference call
via the following:
- Toll-free participant dial-in: 800-210-9006
- Conference ID: 2587628
About Sun Bancorp
Sun Bancorp, Inc. (NASDAQ: SNBC) is a $2.82 billion asset bank holding company
headquartered in Mount Laurel, New
Jersey. Its primary subsidiary is Sun National Bank, a full service commercial
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
The foregoing material contains forward-looking statements as
defined in the Private Securities Litigation Reform Act of 1995,
concerning the financial condition, results of operations and
business of the Company. Forward-looking statements are statements
that include projections, predictions, expectations or beliefs
about events or results or otherwise are not statements of
historical facts, including statements about the successful
implementation of our comprehensive strategic restructuring plan to
improve financial performance and capital, reduce costs, risk and
operating complexity, and the timing of the completion of the
transactions contemplated thereby, addressing the Company's
long-standing obstacles to earnings, regulatory compliance and
overall performance excellence, building a platform that can
support meaningful revenue generation and growth and through which
we can begin to deploy our excess cash balances into quality
commercial loans, our preparations for future loan growth, our
progress in building profitable deposit relationships with our
commercial and consumer clients, anticipated reductions in
non-interest expenses and the anticipated closing of the sale of
certain branches in the first quarter of 2015. These statements may
be identified by such words as "should," "expect," "believe,"
"view," "opportunity," "allow," "continues," "reflects,"
"typically," "usually," "anticipate" or similar words or variations
of such terms. Actual results and trends could differ
materially from those set forth in such statements and there can be
no assurances that our strategic restructuring plan will improve
our financial performance, improve our future capital levels,
reduce our costs, or reduce our risks or operating complexity; that
our strategic restructuring plan will be completed as and in the
time frames anticipated; that we will adequately address long
standing obstacles to earnings, regulatory compliance and overall
performance excellence; that we will build a platform that can
support meaningful revenue generation and growth and through which
we can deploy our excess cash balances into quality commercial
loans; that our preparations for future loan growth will be
successful; that we will continue to make progress in building
profitable deposit relationships with our commercial and consumer
clients; that we will experience anticipated reductions in
non-interest expenses; or that the closing of the sale of certain
branches in the first quarter of 2015 will be completed
successfully. We caution that such statements are subject to a
number of uncertainties. Factors that could cause actual results to
differ from those expressed or implied by such forward-looking
statements include, but are not limited to: (i) competition among
providers of financial services; (ii) changes in laws and
regulations, including without limitation changes in capital
requirements under the federal prompt corrective action
regulations; (iii) changes in business strategy or an inability to
execute strategy due to the occurrence of unanticipated events;
(iv) the failure to complete any or all of the transactions
contemplated in the Company's comprehensive strategic restructuring
plan on the terms currently contemplated; (v) failure to comply
with the Bank's agreement with the Office of the Comptroller of the
Currency (the "OCC"); (vi) the cost of compliance with the
agreement; (vii) local, regional and national economic conditions
and events and the impact they may have on the Company, the Bank
and its customers; (viii) the ability to attract deposits and other
sources of liquidity; (ix) changes in the financial performance
and/or condition of Bank's borrowers; (x) changes in the level of
non-performing and classified assets and charge-offs; (xi) changes
in estimates of future loan loss reserve requirements based upon
the periodic review thereof under relevant regulatory and
accounting requirements; (xii) inflation, interest rate, securities
market and monetary fluctuations; (xiii) changes in consumer
spending, borrowing and saving habits; (xiv) the ability to
increase market share and control expenses; (xv) volatility in the
credit and equity markets and its effect on the general economy;
(xvi) the effect of changes in accounting policies and practices,
as may be adopted by the regulatory agencies, as well as the Public
Company Accounting Oversight Board, the Financial Accounting
Standards Board and other accounting standard setters; and
(xvii) those detailed under the headings "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" in the Company's Form 10-K for the fiscal
year ended December 31, 2013, the
Company's Form 10-Q for the three months ended June 30, 2014 and March
31, 2014, and in other filings made pursuant to the
Securities Exchange Act of 1934, as amended. 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 (Unaudited)
This news release references tax-equivalent interest income.
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 September 30,
2014, June 30, 2014,
March 31, 2014, December 31, 2013 and September 30, 2013 were $166 thousand, $166
thousand, $166 thousand,
$167 thousand, and $167 thousand, respectively. The fully taxable
equivalent adjustments for the nine months ended September 30, 2014 and 2013 were $498 thousand, and $554 thousand,
respectively. This release also references tangible book value per
common share. Tangible book value per common share is a non-GAAP
financial measure. Tangible book value per common share is a
ratio of tangible equity, shareholders' equity less intangible
assets, to outstanding common shares. Intangible assets at
September 30, 2014, June 30, 2014, March 31,
2014, December 31, 2013 and
September 30, 2013 were $38.2 million, $38.4
million, $38.7 million,
$39.0 million and $39.4 million, respectively.
Tax-equivalent interest income
The following reconciles net interest income to net interest
income on a fully taxable equivalent basis using a 35% tax rate for
the three months ended September 30,
2014, June 30, 2014, March 31,
2014, December 31, 2013, and
September 30, 2013 and nine months
ended September 30, 2014 and
September 30, 2013.
For Three Months
Ended:
|
September
30, 2014
|
|
June 30,
2014
|
|
March 31,
2014
|
|
December
31, 2013
|
|
September
30, 2013
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
|
18,921
|
|
$
|
20,612
|
|
$
|
21,392
|
|
$
|
21,935
|
|
$
|
22,980
|
Effect of tax exempt
income
|
|
166
|
|
|
166
|
|
|
166
|
|
|
167
|
|
|
167
|
Net interest income,
tax equivalent basis
|
$
|
19,087
|
|
$
|
20,778
|
|
$
|
21,558
|
|
$
|
22,102
|
|
$
|
23,147
|
For Nine Months
Ended:
|
|
|
September
30,
|
|
|
|
2014
|
2013
|
|
|
|
|
Net interest
income
|
|
|
|
|
$
|
60,925
|
|
$ 67,834
|
Effect of tax exempt
income
|
|
|
|
|
|
498
|
554
|
Net interest income,
tax equivalent basis
|
|
|
|
|
$
|
61,423
|
|
$ 68,388
|
Tangible book value per common share
The following reconciles shareholders' equity to tangible equity
by reducing shareholders' equity by the intangible asset balance at
September 30, 2014, June 30, 2014, March 31,
2014, December, 31, 2013, and September 30, 2013.
|
September
30, 2014
|
|
June 30,
2014
|
|
March 31,
2014
|
|
December
31,
2013
|
|
September
30, 2013
|
|
|
|
|
|
|
|
|
|
|
Tangible book value
per common share:
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
$
|
247,047
|
|
$
|
227,656
|
|
$
|
248,898
|
|
$
|
245,337
|
|
$
|
257,140
|
Less:
Intangible assets
|
|
38,188
|
|
|
38,426
|
|
|
38,709
|
|
|
38,993
|
|
|
39,448
|
Tangible
equity
|
$
|
208,859
|
|
$
|
189,230
|
|
$
|
210,189
|
|
$
|
206,344
|
|
$
|
217,692
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
stock
|
|
18,885
|
|
|
17,752
|
|
|
17,742
|
|
|
17,742
|
|
|
17,724
|
Less:
Treasury stock
|
|
300
|
|
|
319
|
|
|
389
|
|
|
399
|
|
|
414
|
Total outstanding
shares
|
|
18,585
|
|
|
17,433
|
|
|
17,353
|
|
|
17,343
|
|
|
17,310
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value
per common share:
|
$
|
11.24
|
|
$
|
10.85
|
|
$
|
12.11
|
|
$
|
11.90
|
|
$
|
12.58
|
SUN BANCORP, INC.
AND SUBSIDIARIES
|
|
|
FINANCIAL HIGHLIGHTS
(Unaudited)
|
|
|
(Dollars in
thousands, except per share amounts)
|
|
|
|
For the Three
Months
Ended
|
|
For the Nine
Months
Ended
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
Profitability for the
period:
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
$
|
18,921
|
|
$
|
22,980
|
|
$
|
60,925
|
|
$
|
67,834
|
|
|
Provision for loan losses
|
|
|
-
|
|
|
724
|
|
|
14,803
|
|
|
(988)
|
|
|
Non-interest income
|
|
|
4,695
|
|
|
5,799
|
|
|
13,621
|
|
|
26,939
|
|
|
Non-interest expense
|
|
|
24,132
|
|
|
32,917
|
|
|
85,697
|
|
|
97,492
|
|
|
Loss before income taxes
|
|
|
(516)
|
|
|
(4,862)
|
|
|
(25,954)
|
|
|
(1,731)
|
|
|
Income tax
expense
|
|
|
309
|
|
|
-
|
|
|
1,025
|
|
|
-
|
|
|
Net loss available to common shareholders
|
|
$
|
(825)
|
|
$
|
(4,862)
|
|
$
|
(26,979)
|
|
$
|
(1,731)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial
ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets(1)
|
|
|
(0.11)
|
%
|
|
(0.60)
|
%
|
|
(1.68)
|
%
|
|
(0.07)
|
%
|
|
Return on average equity(1)
|
|
|
(1.4)
|
%
|
|
(7.5)
|
%
|
|
(19.8)
|
%
|
|
(0.9)
|
%
|
|
Return on average tangible equity(1),(2)
|
|
|
(1.6)
|
%
|
|
(8.8)
|
%
|
|
(23.3)
|
%
|
|
(1.0)
|
%
|
|
Net interest margin(1)
|
|
|
2.87
|
%
|
|
3.10
|
%
|
|
2.95
|
%
|
|
3.07
|
%
|
|
Efficiency ratio
|
|
|
95
|
%
|
|
114
|
%
|
|
116
|
%
|
|
103
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic(3)
|
|
$
|
(0.05)
|
|
$
|
(0.28)
|
|
$
|
(1.54)
|
|
$
|
(0.10)
|
|
|
Diluted(3)
|
|
$
|
(0.05)
|
|
$
|
(0.28)
|
|
$
|
(1.54)
|
|
$
|
(0.10)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average equity to average assets
|
|
|
8.41
|
%
|
|
7.99
|
%
|
|
8.47
|
%
|
|
8.12
|
%
|
|
|
|
September
30,
|
|
December
31,
|
|
|
|
|
|
2014
|
2013
|
|
2013
|
|
|
|
At
period-end:
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
2,819,893
|
|
$
|
3,236,321
|
|
$
|
3,087,553
|
|
|
|
Total deposits
|
|
|
2,170,627
|
|
|
2,752,693
|
|
|
2,621,571
|
|
|
|
Loans receivable, net of allowance for loan losses
|
|
|
1,649,869
|
|
|
2,120,686
|
|
|
2,102,167
|
|
|
|
Loans held-for-sale, at fair value
|
|
|
4,595
|
|
|
-
|
|
|
20,662
|
|
|
|
Loans held-for-sale, at lower of cost or market
|
|
|
2,770
|
|
|
18,707
|
|
|
-
|
|
|
|
Investments
|
|
|
425,079
|
|
|
425,029
|
|
|
457,797
|
|
|
|
Branch deposits held-for-sale
|
|
|
192,068
|
|
|
-
|
|
|
-
|
|
|
|
Borrowings
|
|
|
68,904
|
|
|
68,953
|
|
|
68,765
|
|
|
|
Junior subordinated debentures
|
|
|
92,786
|
|
|
92,786
|
|
|
92,786
|
|
|
|
Shareholders' equity
|
|
|
247,047
|
|
|
257,140
|
|
|
245,337
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit quality and
capital ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses to gross loans held-for-
investment
|
|
|
1.58
|
%
|
|
2.25
|
%
|
|
1.66
|
%
|
|
|
Non-performing loans held-for-investment to gross loans
held-for-investment
|
|
|
0.84
|
%
|
|
2.55
|
%
|
|
1.78
|
%
|
|
|
Non-performing assets to gross loans held-for-
investment, loans held-for-sale and real estate
owned
|
|
|
1.09
|
%
|
|
2.76
|
%
|
|
1.87
|
%
|
|
|
Allowance for loan losses to non-performing loans held-
for-investment
|
|
|
187
|
%
|
|
88
|
%
|
|
94
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total capital (to
risk-weighted assets) (4):
|
|
|
|
|
|
|
|
|
|
|
|
|
Sun
Bancorp, Inc.
|
|
|
17.9
|
%
|
|
14.7
|
%
|
|
14.4
|
%
|
|
|
Sun
National Bank
|
|
|
16.2
|
%
|
|
14.0
|
%
|
|
13.7
|
%
|
|
|
Tier 1 capital (to
risk-weighted assets) (4):
|
|
|
|
|
|
|
|
|
|
|
|
|
Sun
Bancorp, Inc.
|
|
|
15.6
|
%
|
|
12.8
|
%
|
|
12.3
|
%
|
|
|
Sun
National Bank
|
|
|
14.9
|
%
|
|
12.7
|
%
|
|
12.4
|
%
|
|
|
Leverage
ratio:
|
|
|
|
|
|
|
|
|
|
|
|
|
Sun
Bancorp, Inc.
|
|
|
9.8
|
%
|
|
9.1
|
%
|
|
9.0
|
%
|
|
|
Sun
National Bank
|
|
|
9.4
|
%
|
|
9.1
|
%
|
|
9.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common share
|
|
$
|
13.29
|
|
$
|
14.85
|
|
$
|
14.15
|
|
|
|
Tangible book value per common share
|
|
$
|
11.24
|
|
$
|
12.58
|
|
$
|
11.90
|
|
|
|
(1) Amounts for the
three and nine months ended are annualized.
|
(2) Prior periods
were retroactively adjusted for the impact of the 1-for-5 reverse
stock split completed on August 11, 2014.
|
(3) 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.
(4) September 30,
2014 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)
|
|
September
30,
2014
|
|
December 31,
2013
|
|
ASSETS
|
|
|
|
|
Cash and due from
banks
|
$
|
37,032
|
|
$
|
38,075
|
|
Interest-earning bank
balances
|
|
467,321
|
|
|
229,687
|
|
Cash and cash
equivalents
|
|
504,353
|
|
|
267,762
|
|
Restricted cash
|
|
13,000
|
|
|
26,000
|
|
Investment securities
available for sale (amortized cost of $410,354 and
$452,023 at September 30, 2014 and December 31, 2013,
respectively)
|
|
409,496
|
|
|
440,097
|
|
Investment securities
held to maturity (estimated fair value of $645 and $692 at
September 30, 2014 and December 31, 2013,
respectively)
|
|
604
|
|
|
681
|
|
Loans receivable (net
of allowance for loan losses of $26,540 and $35,537 at
September 30, 2014 and December 31, 2013,
respectively)
|
|
1,649,869
|
|
|
2,102,167
|
|
Loans held-for-sale,
at fair value
|
|
4,595
|
|
|
20,662
|
|
Loans held-for-sale,
at lower of cost or market
|
|
2,770
|
|
|
-
|
|
Branch assets
held-for-sale
|
|
31,408
|
|
|
-
|
|
Restricted equity
investments, at cost
|
|
14,979
|
|
|
17,019
|
|
Bank properties and
equipment, net
|
|
41,610
|
|
|
49,095
|
|
Real estate
owned
|
|
1,084
|
|
|
2,503
|
|
Accrued interest
receivable
|
|
5,652
|
|
|
7,112
|
|
Goodwill
|
|
38,188
|
|
|
38,188
|
|
Intangible assets,
net
|
|
-
|
|
|
805
|
|
Deferred taxes,
net
|
|
-
|
|
|
4,575
|
|
Bank owned life
insurance (BOLI)
|
|
78,650
|
|
|
77,236
|
|
Other
assets
|
|
23,635
|
|
|
33,651
|
|
Total
assets
|
$
|
2,819,893
|
|
$
|
3,087,553
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
Deposits
|
$
|
2,170,627
|
|
$
|
2,621,571
|
|
Branch deposits
held-for-sale
|
|
192,068
|
|
|
-
|
|
Securities sold under
agreements to repurchase – customers
|
|
963
|
|
|
478
|
|
Advances from the
Federal Home Loan Bank of New York (FHLBNY)
|
|
60,830
|
|
|
60,956
|
|
Obligations under
capital lease
|
|
7,111
|
|
|
7,331
|
|
Junior subordinated
debentures
|
|
92,786
|
|
|
92,786
|
|
Deferred taxes,
net
|
|
662
|
|
|
-
|
|
Other
liabilities
|
|
47,799
|
|
|
59,094
|
|
Total
liabilities
|
|
2,572,846
|
|
|
2,842,216
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
Preferred stock, $1
par value, 1,000,000 shares authorized; none issued
|
|
-
|
|
|
-
|
|
Common stock, $5 par
value, 40,000,000 shares authorized; 18,884,782 shares
issued and 18,585,036 shares outstanding at September
30, 2014;
17,742,207 shares issued and 17,342,883 shares
outstanding at December
31, 2013(1)
|
|
94,415
|
|
|
88,711
|
|
Additional paid-in
capital
|
|
515,390
|
|
|
506,719
|
|
Retained
deficit
|
|
(344,933)
|
|
|
(317,954)
|
|
Accumulated other
comprehensive loss
|
|
(508)
|
|
|
(7,055)
|
|
Deferred compensation
plan trust
|
|
(599)
|
|
|
(522)
|
|
Treasury stock at
cost, 299,746 shares at September 30, 2014; and
399,324
shares at December 31, 2013
|
|
(16,718)
|
|
|
(24,562)
|
|
Total shareholders'
equity
|
|
247,047
|
|
|
245,337
|
|
Total liabilities and
shareholders' equity
|
$
|
2,819,893
|
|
$
|
3,087,553
|
|
(1) Prior period share data was retroactively adjusted for the
impact of the 1-for-5 reverse stock split completed on August 11, 2014
SUN BANCORP, INC.
AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF OPERATIONS (Unaudited)
|
(Dollars in
thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months
Ended September 30,
|
|
|
|
For the Nine
Months
Ended September 30,
|
|
|
|
2014
|
|
|
2013
|
|
|
|
2014
|
|
|
2013
|
|
INTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
$
|
19,307
|
|
$
|
24,576
|
|
|
$
|
62,223
|
|
$
|
73,420
|
|
Interest on taxable
investment securities
|
|
2,140
|
|
|
1,680
|
|
|
|
6,583
|
|
|
4,449
|
|
Interest on
non-taxable investment securities
|
|
306
|
|
|
310
|
|
|
|
923
|
|
|
1,028
|
|
Dividends on
restricted equity investments
|
|
202
|
|
|
222
|
|
|
|
643
|
|
|
685
|
|
Total interest
income
|
|
21,955
|
|
|
26,788
|
|
|
|
70,372
|
|
|
79,582
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
|
2,057
|
|
|
2,813
|
|
|
|
6,526
|
|
|
8,773
|
|
Interest on funds
borrowed
|
|
435
|
|
|
445
|
|
|
|
1,314
|
|
|
1,332
|
|
Interest on junior
subordinated debentures
|
|
542
|
|
|
550
|
|
|
|
1,607
|
|
|
1,643
|
|
Total interest
expense
|
|
3,034
|
|
|
3,808
|
|
|
|
9,447
|
|
|
11,748
|
|
Net interest
income
|
|
18,921
|
|
|
22,980
|
|
|
|
60,925
|
|
|
67,834
|
|
PROVISION FOR LOAN
LOSSES
|
|
-
|
|
|
724
|
|
|
|
14,803
|
|
|
(988)
|
|
Net Interest income
after provision for loan losses
|
|
18,921
|
|
|
22,256
|
|
|
|
46,122
|
|
|
68,822
|
|
NON-INTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on
deposit accounts
|
|
2,285
|
|
|
2,314
|
|
|
|
6,651
|
|
|
6,793
|
|
Mortgage banking
revenue, net
|
|
423
|
|
|
1,593
|
|
|
|
1,190
|
|
|
10,598
|
|
Gain on sale of
investment securities
|
|
-
|
|
|
2
|
|
|
|
50
|
|
|
3,489
|
|
Investment
products income
|
|
635
|
|
|
678
|
|
|
|
1,967
|
|
|
2,085
|
|
BOLI income
|
|
484
|
|
|
482
|
|
|
|
1,414
|
|
|
1,416
|
|
Derivative credit
valuation adjustment
|
|
11
|
|
|
(380)
|
|
|
|
(1,189)
|
|
|
(878)
|
|
Other
|
|
857
|
|
|
1,110
|
|
|
|
3,538
|
|
|
3,436
|
|
Total non-interest
income
|
|
4,695
|
|
|
5,799
|
|
|
|
13,621
|
|
|
26,939
|
|
NON-INTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
11,265
|
|
|
12,656
|
|
|
|
40,141
|
|
|
39,967
|
|
Commission
expense
|
|
553
|
|
|
2,001
|
|
|
|
2,261
|
|
|
6,598
|
|
Occupancy
expense
|
|
2,980
|
|
|
3,456
|
|
|
|
10,798
|
|
|
10,113
|
|
Equipment
expense
|
|
1,695
|
|
|
1,796
|
|
|
|
5,800
|
|
|
5,485
|
|
Amortization of
intangible assets
|
|
238
|
|
|
540
|
|
|
|
805
|
|
|
2,002
|
|
Data processing
expense
|
|
1,299
|
|
|
995
|
|
|
|
3,777
|
|
|
3,021
|
|
Professional
fees
|
|
1,423
|
|
|
5,947
|
|
|
|
5,262
|
|
|
13,355
|
|
Insurance
expenses
|
|
1,443
|
|
|
1,496
|
|
|
|
4,268
|
|
|
4,468
|
|
Advertising
expense
|
|
567
|
|
|
676
|
|
|
|
1,676
|
|
|
1,927
|
|
Problem loan
expense
|
|
294
|
|
|
816
|
|
|
|
1,492
|
|
|
2,638
|
|
Real estate owned
expense, net
|
|
71
|
|
|
252
|
|
|
|
917
|
|
|
1,741
|
|
Office supplies
expense
|
|
217
|
|
|
192
|
|
|
|
753
|
|
|
612
|
|
Other
|
|
2,087
|
|
|
2,094
|
|
|
|
7,747
|
|
|
5,565
|
|
Total non-interest
expense
|
|
24,132
|
|
|
32,917
|
|
|
|
85,697
|
|
|
97,492
|
|
LOSS BEFORE INCOME
TAXES
|
|
(516)
|
|
|
(4,862)
|
|
|
|
(25,954)
|
|
|
(1,731)
|
|
INCOME TAX
EXPENSE
|
|
309
|
|
|
-
|
|
|
|
1,025
|
|
|
-
|
|
NET LOSS AVAILABLE
TO COMMON
SHAREHOLDERS
|
$
|
(825)
|
|
$
|
(4,862)
|
|
|
$
|
(26,979)
|
|
$
|
(1,731)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic loss per
share(1)
|
$
|
(0.05)
|
|
$
|
(0.28)
|
|
|
$
|
(1.54)
|
|
$
|
(0.10)
|
|
Diluted loss per
share(1)
|
$
|
(0.05)
|
|
$
|
(0.28)
|
|
|
$
|
(1.54)
|
|
$
|
(0.10)
|
|
Weighted average
shares – basic(1)
|
17,949,643
|
|
17,299,917
|
|
|
17,574,246
|
|
17,271,373
|
|
Weighted average
shares – diluted(1)
|
17,949,643
|
|
17,299,917
|
|
|
17,574,246
|
|
17,271,373
|
|
(1) Prior periods were retroactively adjusted for the impact of
the 1-for-5 reverse stock split completed on August 11, 2014.
SUN BANCORP, INC.
AND SUBSIDIARIES
|
|
HISTORICAL TRENDS IN
QUARTERLY FINANCIAL DATA (Unaudited)
|
|
(Dollars in
thousands)
|
|
|
2014
|
|
2014
|
|
2014
|
|
2013
|
|
2013
|
|
|
Q3
|
|
Q2
|
|
Q1
|
|
Q4
|
|
Q3
|
|
Balance sheet at
quarter end:
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
504,353
|
|
$
|
330,440
|
|
$
|
282,095
|
|
$
|
267,762
|
|
$
|
427,583
|
|
Restricted
cash
|
|
13,000
|
|
|
26,000
|
|
|
26,000
|
|
|
26,000
|
|
|
26,000
|
|
Investment
securities
|
|
425,079
|
|
|
454,051
|
|
|
456,724
|
|
|
457,797
|
|
|
425,029
|
|
Loans
held-for-investment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
1,196,767
|
|
|
1,363,900
|
|
|
1,519,993
|
|
|
1,587,566
|
|
|
1,636,856
|
|
Home
equity
|
|
151,369
|
|
|
165,671
|
|
|
184,936
|
|
|
188,478
|
|
|
192,135
|
|
Second
mortgage
|
|
21,858
|
|
|
21,282
|
|
|
23,312
|
|
|
25,279
|
|
|
26,028
|
|
Residential real estate
|
|
299,838
|
|
|
298,063
|
|
|
326,945
|
|
|
305,552
|
|
|
281,537
|
|
Other
|
|
6,577
|
|
|
7,200
|
|
|
28,894
|
|
|
30,829
|
|
|
32,984
|
|
Total gross loans held-for-investment
|
|
1,676,409
|
|
|
1,856,116
|
|
|
2,084,080
|
|
|
2,137,704
|
|
|
2,169,540
|
|
Allowance for loan
losses
|
|
(26,540)
|
|
|
(28,392)
|
|
|
(33,768)
|
|
|
(35,537)
|
|
|
(48,854)
|
|
Net
loans held-for-investment
|
|
1,649,869
|
|
|
1,827,724
|
|
|
2,050,312
|
|
|
2,102,167
|
|
|
2,120,686
|
|
Loans
held-for-sale
|
|
7,365
|
|
|
29,171
|
|
|
16,048
|
|
|
20,662
|
|
|
18,707
|
|
Branch
assets held-for-sale
|
|
31,408
|
|
|
34,058
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Goodwill
|
|
38,188
|
|
|
38,188
|
|
|
38,188
|
|
|
38,188
|
|
|
38,188
|
|
Intangible assets, net
|
|
-
|
|
|
238
|
|
|
521
|
|
|
805
|
|
|
1,260
|
|
Total assets
|
|
2,819,893
|
|
|
2,894,658
|
|
|
3,038,467
|
|
|
3,087,553
|
|
|
3,236,321
|
|
Total deposits
|
|
2,170,627
|
|
|
2,272,765
|
|
|
2,573,445
|
|
|
2,621,571
|
|
|
2,752,693
|
|
Branch
deposits held-for-sale
|
|
192,068
|
|
|
160,769
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Securities sold under
agreements to
repurchase - customers
|
|
963
|
|
|
670
|
|
|
471
|
|
|
478
|
|
|
554
|
|
Advances from FHLBNY
|
|
60,830
|
|
|
60,873
|
|
|
60,915
|
|
|
60,956
|
|
|
60,997
|
|
Obligations under capital lease
|
|
7,111
|
|
|
7,191
|
|
|
7,259
|
|
|
7,331
|
|
|
7,402
|
|
Junior subordinated debentures
|
|
92,786
|
|
|
92,786
|
|
|
92,786
|
|
|
92,786
|
|
|
92,786
|
|
Total shareholders' equity
|
|
247,047
|
|
|
227,656
|
|
|
248,898
|
|
|
245,337
|
|
|
257,140
|
|
Quarterly average
balance sheet:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
$
|
1,292,705
|
|
$
|
1,480,491
|
|
$
|
1,560,442
|
|
$
|
1,621,222
|
|
$
|
1,671,302
|
|
Home
equity
|
|
179,226
|
|
|
185,710
|
|
|
187,052
|
|
|
190,394
|
|
|
194,622
|
|
Second
mortgage
|
|
22,528
|
|
|
24,358
|
|
|
24,863
|
|
|
26,142
|
|
|
27,041
|
|
Residential real estate
|
|
322,751
|
|
|
338,028
|
|
|
331,433
|
|
|
312,977
|
|
|
299,667
|
|
Other
|
|
3,755
|
|
|
23,196
|
|
|
25,014
|
|
|
26,134
|
|
|
27,723
|
|
Total gross loans
|
|
1,820,965
|
|
|
2,051,783
|
|
|
2,128,804
|
|
|
2,176,869
|
|
|
2,220,355
|
|
Securities and other interest-earning assets
|
|
840,541
|
|
|
694,529
|
|
|
677,850
|
|
|
782,200
|
|
|
763,575
|
|
Total interest-earning assets
|
|
2,661,506
|
|
|
2,746,312
|
|
|
2,806,654
|
|
|
2,959,069
|
|
|
2,983,930
|
|
Total assets
|
|
2,888,920
|
|
|
2,982,427
|
|
|
3,049,321
|
|
|
3,205,900
|
|
|
3,264,884
|
|
Non-interest-bearing demand deposits
|
|
612,775
|
|
|
573,290
|
|
|
559,606
|
|
|
585,530
|
|
|
549,684
|
|
Total deposits
|
|
2,429,606
|
|
|
2,519,901
|
|
|
2,584,588
|
|
|
2,718,905
|
|
|
2,746,820
|
|
Total interest-bearing liabilities
|
|
1,978,480
|
|
|
2,108,103
|
|
|
2,186,394
|
|
|
2,295,072
|
|
|
2,358,923
|
|
Total shareholders' equity
|
|
243,020
|
|
|
254,116
|
|
|
250,946
|
|
|
256,783
|
|
|
260,701
|
|
Capital and credit
quality measures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total capital (to
risk-weighted assets)(2):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sun
Bancorp, Inc.
|
|
17.9
|
%
|
|
15.0
|
%
|
|
14.9
|
%
|
|
14.41
|
%
|
|
14.72
|
%
|
Sun
National Bank
|
|
16.2
|
%
|
|
14.5
|
%
|
|
14.1
|
%
|
|
13.65
|
%
|
|
13.96
|
%
|
Tier 1 capital (to risk-weighted assets)(2):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sun
Bancorp, Inc.
|
|
15.6
|
%
|
|
12.4
|
%
|
|
12.8
|
%
|
|
12.34
|
%
|
|
12.76
|
%
|
Sun
National Bank
|
|
14.9
|
%
|
|
13.2
|
%
|
|
12.8
|
%
|
|
12.40
|
%
|
|
12.70
|
%
|
Leverage ratio:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sun
Bancorp, Inc.
|
|
9.8
|
%
|
|
8.6
|
%
|
|
9.4
|
%
|
|
8.99
|
%
|
|
9.13
|
%
|
Sun
National Bank
|
|
9.4
|
%
|
|
9.1
|
%
|
|
9.5
|
%
|
|
9.02
|
%
|
|
9.09
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average equity to average assets
|
|
8.4
|
%
|
|
8.5
|
%
|
|
8.2
|
%
|
|
8.01
|
%
|
|
7.99
|
%
|
Allowance for loan losses to total gross loans
held-for-investment
|
|
1.58
|
%
|
|
1.5
|
%
|
|
1.62
|
%
|
|
1.66
|
%
|
|
2.25
|
%
|
Non-performing loans held-for-investment to
gross loans held-for-investment
|
|
0.84
|
%
|
|
0.76
|
%
|
|
1.80
|
%
|
|
1.78
|
%
|
|
2.55
|
%
|
Non-performing assets to gross loans held-
for-investment, loans held-for-sale and real
estate owned
|
|
1.07
|
%
|
|
1.02
|
%
|
|
1.91
|
%
|
|
1.87
|
%
|
|
2.76
|
%
|
Allowance for loan losses to non-performing
loans held-for-investment
|
|
188
|
%
|
|
202
|
%
|
|
90
|
%
|
|
94
|
%
|
|
88
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (charge-offs)
recoveries
|
|
(1,852)
|
|
|
(20,179)
|
|
|
(1,768)
|
|
|
(15,452)
|
|
|
123
|
|
Non-performing
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-accrual loans
|
$
|
13,561
|
|
$
|
13,470
|
|
$
|
29,387
|
|
$
|
29,811
|
|
$
|
44,976
|
|
Non-accrual loans held-for-sale
|
|
2,770
|
|
|
4,086
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Troubled
debt restructurings, non-accrual
|
|
528
|
|
|
583
|
|
|
8,017
|
|
|
8,166
|
|
|
10,419
|
|
Loans
past due 90 days and accruing
|
|
-
|
|
|
-
|
|
|
42
|
|
|
-
|
|
|
-
|
|
Real
estate owned, net
|
|
1,084
|
|
|
1,327
|
|
|
2,728
|
|
|
2,503
|
|
|
5,059
|
|
Total non-performing assets
|
$
|
17,943
|
|
$
|
19,466
|
|
|
40,174
|
|
|
40,480
|
|
$
|
60,454
|
|
(1)
Average balances include non-accrual loans and loans
held-for-sale.
(2)
September 30, 2014 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)
|
|
|
|
2014
|
|
2014
|
|
2014
|
|
2013
|
|
2013
|
|
|
|
Q3
|
|
Q2
|
|
Q1
|
|
Q4
|
|
Q3
|
|
|
Profitability for the
quarter:
|
|
|
|
|
|
|
|
|
|
|
|
Tax-equivalent
interest income
|
$
|
22,121
|
|
$
|
23,943
|
|
$
|
24,806
|
|
$
|
25,667
|
|
$
|
26,955
|
|
|
Interest
expense
|
|
3,034
|
|
|
3,165
|
|
|
3,248
|
|
|
3,565
|
|
|
3,808
|
|
|
Tax-equivalent net
interest income
|
|
19,087
|
|
|
20,778
|
|
|
21,558
|
|
|
22,102
|
|
|
23,147
|
|
|
Tax-equivalent
adjustment
|
|
166
|
|
|
166
|
|
|
166
|
|
|
167
|
|
|
167
|
|
|
Provision for loan
losses
|
|
-
|
|
|
14,803
|
|
|
-
|
|
|
2,135
|
|
|
(724)
|
|
|
Non-interest
income
|
|
4,695
|
|
|
3,977
|
|
|
4,949
|
|
|
4,742
|
|
|
5,799
|
|
|
Non-interest expense
excluding
amortization of intangible assets
|
|
23,894
|
|
|
33,394
|
|
|
27,604
|
|
|
32,002
|
|
|
32,377
|
|
|
Amortization of
intangible assets
|
|
238
|
|
|
283
|
|
|
284
|
|
|
455
|
|
|
540
|
|
|
Loss before income
taxes
|
|
(516)
|
|
|
(23,891)
|
|
|
(1,547)
|
|
|
(7,915)
|
|
|
(4,862)
|
|
|
Income tax
expense
|
|
309
|
|
|
357
|
|
|
359
|
|
|
297
|
|
|
-
|
|
|
Net loss available to
common shareholders
|
$
|
(825)
|
|
$
|
(24,248)
|
|
$
|
(1,906)
|
|
$
|
(8,212)
|
|
$
|
(4,862)
|
|
|
Financial
ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets(1)
|
|
(0.11)
|
%
|
|
(3.25)
|
%
|
|
(0.25)
|
%
|
|
(1.02)
|
%
|
|
(0.60)
|
%
|
|
Return on average
equity(1)
|
|
(1.4)
|
%
|
|
(38.2)
|
%
|
|
(3.0)
|
%
|
|
(12.8)
|
%
|
|
(7.5)
|
%
|
|
Return on average
tangible equity(1),(2)
|
|
(1.6)
|
%
|
|
(45.0)
|
%
|
|
(3.6)
|
%
|
|
(15.1)
|
%
|
|
(8.8)
|
%
|
|
Net interest
margin(1)
|
|
2.87
|
%
|
|
3.03
|
%
|
|
3.07
|
%
|
|
2.99
|
%
|
|
3.10
|
%
|
|
Efficiency
ratio
|
|
95
|
%
|
|
137
|
%
|
|
106
|
%
|
|
122
|
%
|
|
114
|
%
|
|
Per share
data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per common
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic(3)
|
$
|
(0.05)
|
|
$
|
(1.39)
|
|
$
|
(0.11)
|
|
$
|
(0.47)
|
|
$
|
(0.28)
|
|
|
Diluted(3)
|
$
|
(0.05)
|
|
$
|
(1.39)
|
|
$
|
(0.11)
|
|
$
|
(0.47)
|
|
$
|
(0.28)
|
|
|
Book
value(3)
|
$
|
13.29
|
|
$
|
13.06
|
|
$
|
14.34
|
|
$
|
14.15
|
|
$
|
14.86
|
|
|
Tangible book
value(3)
|
$
|
11.24
|
|
$
|
10.85
|
|
$
|
12.11
|
|
$
|
11.90
|
|
$
|
12.58
|
|
|
Average basic
shares(3)
|
17,949,643
|
|
17,417,829
|
|
17,348,169
|
|
17,316,673
|
|
17,299,917
|
|
|
Average diluted
shares(3)
|
17,949,643
|
|
17,417,829
|
|
17,348,169
|
|
17,316,673
|
|
17,299,917
|
|
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on
deposit accounts
|
$
|
2,285
|
|
$
|
2,215
|
|
$
|
2,151
|
|
$
|
2,263
|
|
$
|
2,314
|
|
|
Mortgage banking
revenue, net
|
|
423
|
|
|
529
|
|
|
635
|
|
|
1,000
|
|
|
1,593
|
|
|
Net gain on sale of
investment securities
|
|
-
|
|
|
50
|
|
|
-
|
|
|
-
|
|
|
2
|
|
|
Investment products
income
|
|
635
|
|
|
715
|
|
|
617
|
|
|
599
|
|
|
678
|
|
|
BOLI income
|
|
484
|
|
|
469
|
|
|
461
|
|
|
466
|
|
|
482
|
|
|
Derivative credit
valuation adjustment
|
|
11
|
|
|
(1,162)
|
|
|
(38)
|
|
|
(710)
|
|
|
(380)
|
|
|
Other
income
|
|
857
|
|
|
1,161
|
|
|
1,123
|
|
|
1,124
|
|
|
1,110
|
|
|
Total
non-interest income
|
$
|
4,695
|
|
$
|
3,977
|
|
$
|
4,949
|
|
$
|
4,742
|
|
$
|
5,799
|
|
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits
|
$
|
11,265
|
|
$
|
15,992
|
|
$
|
12,884
|
|
$
|
13,070
|
|
$
|
12,656
|
|
|
Commission expense
|
|
553
|
|
|
811
|
|
|
897
|
|
|
1,098
|
|
|
2,001
|
|
|
Occupancy expense
|
|
2,980
|
|
|
3,552
|
|
|
4,266
|
|
|
3,406
|
|
|
3,456
|
|
|
Equipment expense
|
|
1,695
|
|
|
2,356
|
|
|
1,749
|
|
|
1,871
|
|
|
1,796
|
|
|
Amortization of intangible assets
|
|
238
|
|
|
283
|
|
|
284
|
|
|
455
|
|
|
540
|
|
|
Data processing expense
|
|
1,299
|
|
|
1,281
|
|
|
1,197
|
|
|
1,223
|
|
|
995
|
|
|
Professional fees
|
|
1,423
|
|
|
2,353
|
|
|
1,486
|
|
|
4,891
|
|
|
5,947
|
|
|
Insurance expense
|
|
1,443
|
|
|
1,358
|
|
|
1,467
|
|
|
1,498
|
|
|
1,496
|
|
|
Advertising expense
|
|
567
|
|
|
523
|
|
|
586
|
|
|
903
|
|
|
676
|
|
|
Problem loan costs
|
|
294
|
|
|
566
|
|
|
632
|
|
|
769
|
|
|
816
|
|
|
Real estate owned expense, net
|
|
71
|
|
|
702
|
|
|
144
|
|
|
529
|
|
|
252
|
|
|
Office supplies expense
|
|
217
|
|
|
285
|
|
|
251
|
|
|
245
|
|
|
192
|
|
|
Other expense
|
|
2,087
|
|
|
3,615
|
|
|
2,045
|
|
|
2,499
|
|
|
2,094
|
|
|
Total
non-interest expense
|
$
|
24,132
|
|
$
|
33,677
|
|
$
|
27,888
|
|
$
|
32,457
|
|
$
|
32,917
|
|
|
(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) Prior periods
were retroactively adjusted for the impact of the 1-for-5 reverse
stock split completed on August 11, 2014.
|
|
|
|
|
|
|
|
|
|
SUN BANCORP, INC.
AND SUBSIDIARIES
|
|
|
AVERAGE BALANCE
SHEETS (Unaudited)
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
For the
Three Months Ended September 30,
|
|
|
|
2014
|
|
|
2013
|
|
|
|
Average
|
|
Income/
|
|
Yield/
|
|
|
Average
|
|
Income/
|
|
Yield/
|
|
|
|
Balance
|
|
Expense
|
|
Cost
|
|
|
Balance
|
|
Expense
|
|
Cost
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable
(1),(2):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
$
|
1,292,705
|
|
$
|
14,438
|
|
|
4,47
|
%
|
|
$
|
1,671,302
|
|
|
19,205
|
|
|
4.60
|
%
|
|
Home equity
|
|
179,226
|
|
|
1,749
|
|
|
3.90
|
|
|
|
194,622
|
|
|
1,892
|
|
|
3.89
|
|
|
Second
mortgage
|
|
22,528
|
|
|
313
|
|
|
5.56
|
|
|
|
27,041
|
|
|
384
|
|
|
5.68
|
|
|
Residential real
estate
|
|
322,751
|
|
|
2,737
|
|
|
3.39
|
|
|
|
299,667
|
|
|
2,620
|
|
|
3.50
|
|
|
Other
|
|
3,755
|
|
|
70
|
|
|
7.46
|
|
|
|
27,723
|
|
|
476
|
|
|
6.87
|
|
|
Total loans
receivable
|
|
1,820,965
|
|
|
19,307
|
|
|
4.24
|
|
|
|
2,220,355
|
|
|
24,577
|
|
|
4.43
|
|
|
Investment
securities(3)
|
|
434,721
|
|
|
2,562
|
|
|
2.36
|
|
|
|
414,189
|
|
|
2,203
|
|
|
2.13
|
|
|
Interest-earning bank
balances
|
|
405,820
|
|
|
252
|
|
|
0.25
|
|
|
|
349,386
|
|
|
222
|
|
|
0.25
|
|
|
Total interest-earning
assets
|
|
2,661,506
|
|
|
22,121
|
|
|
3.32
|
|
|
|
2,983,930
|
|
|
27,002
|
|
|
3.62
|
|
|
Non-interest earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due
from banks
|
|
44,380
|
|
|
|
|
|
|
|
|
|
46,336
|
|
|
|
|
|
|
|
|
Restricted
cash
|
|
13,000
|
|
|
|
|
|
|
|
|
|
26,000
|
|
|
|
|
|
|
|
|
Bank
properties and equipment, net
|
|
46,162
|
|
|
|
|
|
|
|
|
|
48,590
|
|
|
|
|
|
|
|
|
Goodwill and
intangible assets, net
|
|
38,281
|
|
|
|
|
|
|
|
|
|
39,717
|
|
|
|
|
|
|
|
|
Other
assets
|
|
85,591
|
|
|
|
|
|
|
|
|
|
120,311
|
|
|
|
|
|
|
|
|
Total
non-interest-earning assets
|
|
227,414
|
|
|
|
|
|
|
|
|
|
280,954
|
|
|
|
|
|
|
|
|
Total
assets
|
$
|
2,888,920
|
|
|
|
|
|
|
|
|
$
|
3,264,884
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposit accounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
demand deposits
|
$
|
1,010,830
|
|
$
|
707
|
|
|
0.28
|
%
|
|
$
|
1,263,160
|
|
|
1,064
|
|
|
0.34
|
%
|
|
Savings
deposits
|
|
256,909
|
|
|
164
|
|
|
0.26
|
|
|
|
270,394
|
|
|
213
|
|
|
0.32
|
|
|
Time
deposits
|
|
549,092
|
|
|
1,186
|
|
|
0.86
|
|
|
|
663,582
|
|
|
1,536
|
|
|
0.93
|
|
|
Total interest-bearing
deposit
accounts
|
|
1,816,831
|
|
|
2,057
|
|
|
0.45
|
|
|
|
2,197,136
|
|
|
2,813
|
|
|
0.51
|
|
|
Short-term
borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities sold under
agreements to
repurchase - customers
|
|
875
|
|
|
-
|
|
|
-
|
|
|
|
555
|
|
|
-
|
|
|
-
|
|
|
Long-term
borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FHLBNY advances
(4)
|
|
60,845
|
|
|
318
|
|
|
2.09
|
|
|
|
61,011
|
|
|
321
|
|
|
2.10
|
|
|
Obligations under
capital lease
|
|
7,143
|
|
|
117
|
|
|
6.55
|
|
|
|
7,435
|
|
|
124
|
|
|
6.67
|
|
|
Junior subordinated
debentures
|
|
92,786
|
|
|
542
|
|
|
2.34
|
|
|
|
92,786
|
|
|
550
|
|
|
2.37
|
|
|
Total
borrowings
|
|
161,649
|
|
|
977
|
|
|
2.42
|
|
|
|
161,787
|
|
|
995
|
|
|
2.46
|
|
|
Total interest-bearing
liabilities
|
|
1,978,480
|
|
|
3,034
|
|
|
0.61
|
|
|
|
2,358,923
|
|
|
3,808
|
|
|
0.65
|
|
|
Non-interest bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing demand deposits
|
|
612,775
|
|
|
|
|
|
|
|
|
|
549,684
|
|
|
|
|
|
|
|
|
Other
liabilities
|
|
54,645
|
|
|
|
|
|
|
|
|
|
95,576
|
|
|
|
|
|
|
|
|
Total non-interest
bearing liabilities
|
|
667,420
|
|
|
|
|
|
|
|
|
|
645,260
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
2,645,900
|
|
|
|
|
|
|
|
|
|
3,004,183
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
243,020
|
|
|
|
|
|
|
|
|
|
260,701
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
2,888,920
|
|
|
|
|
|
|
|
|
$
|
3,264,884
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
|
$
|
19,087
|
|
|
|
|
|
|
|
|
$
|
23,194
|
|
|
|
|
|
Interest rate spread
(5)
|
|
|
|
|
|
|
|
2.71
|
%
|
|
|
|
|
|
|
|
|
2.97
|
%
|
|
Net interest margin
(6)
|
|
|
|
|
|
|
|
2.87
|
%
|
|
|
|
|
|
|
|
|
3.11
|
%
|
|
Ratio of average
interest-earning assets to
average interest-bearing liabilities
|
|
|
|
|
|
|
|
135
|
%
|
|
|
|
|
|
|
|
|
127
|
%
|
|
|
|
|
(1) Average
balances include non-accrual loans and loans
held-for-sale.
|
|
|
(2) Loan fees
are included in interest income and the amount is not material for
this analysis.
|
|
|
(3) Interest
earned on non-taxable investment securities is shown on a
tax-equivalent basis assuming a 35% marginal federal tax rate for
all
periods. The fully
taxable equivalent adjustments for the three months ended
September, 2014 and 2013 were $166 thousand and $167
thousand,
respectively.
|
|
|
(4) Amounts
include Advances from FHLBNY and Securities sold under agreements
to repurchase - FHLBNY.
|
|
|
(5) Interest
rate spread represents the difference between the average yield on
interest-earning assets and the average cost of
interest-bearing
liabilities.
|
|
|
(6) Net
interest margin represents net interest income as a percentage of
average interest-earning assets.
|
|
|
SUN BANCORP, INC.
AND SUBSIDIARIES
|
|
AVERAGE BALANCE
SHEETS (Unaudited)
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
For the Nine
Months Ended September 30,
|
|
|
|
2014
|
|
|
2013
|
|
|
|
Average
|
|
Income/
|
|
Yield/
|
|
|
Average
|
|
Income/
|
|
Yield/
|
|
|
|
Balance
|
|
Expense
|
|
Cost
|
|
|
Balance
|
|
Expense
|
|
Cost
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable
(1),(2):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
$
|
1,443,565
|
|
$
|
46,173
|
|
|
4.25
|
%
|
|
$
|
1,711,443
|
|
|
56,786
|
|
|
4.41
|
%
|
|
Home equity
|
|
183,967
|
|
|
5,288
|
|
|
3.82
|
|
|
|
198,688
|
|
|
5,709
|
|
|
3.82
|
|
|
Second
mortgage
|
|
23,907
|
|
|
996
|
|
|
5.54
|
|
|
|
28,677
|
|
|
1,244
|
|
|
5.77
|
|
|
Residential real
estate
|
|
330,706
|
|
|
8,881
|
|
|
3.57
|
|
|
|
312,496
|
|
|
8,176
|
|
|
3.48
|
|
|
Other
|
|
17,244
|
|
|
884
|
|
|
6.82
|
|
|
|
29,010
|
|
|
1,504
|
|
|
6.90
|
|
|
Total loans
receivable
|
|
1,999,389
|
|
|
62,222
|
|
|
4.14
|
|
|
|
2,280,314
|
|
|
73,419
|
|
|
4.28
|
|
|
Investment
securities(3)
|
|
447,894
|
|
|
8,103
|
|
|
2.41
|
|
|
|
405,124
|
|
|
6,192
|
|
|
2.03
|
|
|
Interest-earning bank
balances
|
|
290,342
|
|
|
544
|
|
|
0.25
|
|
|
|
279,288
|
|
|
525
|
|
|
0.25
|
|
|
Total interest-earning
assets
|
|
2,737,625
|
|
|
70,869
|
|
|
3.44
|
|
|
|
2,964,726
|
|
|
80,136
|
|
|
3.59
|
|
|
Non-interest earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due
from banks
|
|
42,317
|
|
|
|
|
|
|
|
|
|
72,025
|
|
|
|
|
|
|
|
|
Restricted
cash
|
|
21,619
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
Bank
properties and equipment, net
|
|
47,442
|
|
|
|
|
|
|
|
|
|
49,375
|
|
|
|
|
|
|
|
|
Goodwill and
intangible assets, net
|
|
38,565
|
|
|
|
|
|
|
|
|
|
40,314
|
|
|
|
|
|
|
|
|
Other
assets
|
|
85,400
|
|
|
|
|
|
|
|
|
|
104,933
|
|
|
|
|
|
|
|
|
Total
non-interest-earning assets
|
|
235,343
|
|
|
|
|
|
|
|
|
|
266,647
|
|
|
|
|
|
|
|
|
Total
assets
|
$
|
2,972,968
|
|
|
|
|
|
|
|
|
$
|
3,231,373
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposit accounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
demand deposits
|
$
|
1,086,050
|
|
$
|
2,304
|
|
|
0.28
|
%
|
|
$
|
1,249,777
|
|
|
3,269
|
|
|
0.35
|
%
|
|
Savings
deposits
|
|
262,829
|
|
|
521
|
|
|
0.26
|
|
|
|
268,488
|
|
|
648
|
|
|
0.32
|
|
|
Time
deposits
|
|
579,833
|
|
|
3,701
|
|
|
0.85
|
|
|
|
676,742
|
|
|
4,856
|
|
|
0.95
|
|
|
Total interest-bearing
deposit
accounts
|
|
1,928,712
|
|
|
6,526
|
|
|
0.45
|
|
|
|
2,195,007
|
|
|
8,773
|
|
|
0.53
|
|
|
Short-term
borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities sold under
agreements to
repurchase - customers
|
|
627
|
|
|
-
|
|
|
-
|
|
|
|
1,920
|
|
|
2
|
|
|
0.14
|
|
|
Long-term
borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FHLBNY advances
(4)
|
|
60,887
|
|
|
946
|
|
|
2.07
|
|
|
|
61,073
|
|
|
955
|
|
|
2.08
|
|
|
Obligations under
capital lease
|
|
7,219
|
|
|
367
|
|
|
6.76
|
|
|
|
7,503
|
|
|
375
|
|
|
6.65
|
|
|
Junior subordinated
debentures
|
|
92,786
|
|
|
1,607
|
|
|
2.30
|
|
|
|
92,786
|
|
|
1,643
|
|
|
2.36
|
|
|
Total
borrowings
|
|
161,519
|
|
|
2,920
|
|
|
2.40
|
|
|
|
163,282
|
|
|
2,975
|
|
|
2.42
|
|
|
Total interest-bearing
liabilities
|
|
2,090,231
|
|
|
9,446
|
|
|
0.60
|
|
|
|
2,358,289
|
|
|
11,748
|
|
|
0.66
|
|
|
Non-interest bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing demand deposits
|
|
582,085
|
|
|
|
|
|
|
|
|
|
529,322
|
|
|
|
|
|
|
|
Other
liabilities
|
|
51,321
|
|
|
|
|
|
|
|
|
|
81,477
|
|
|
|
|
|
|
|
|
Total non-interest
bearing liabilities
|
|
633,406
|
|
|
|
|
|
|
|
|
|
610,799
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
2,723,637
|
|
|
|
|
|
|
|
|
|
2,969,088
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
249,331
|
|
|
|
|
|
|
|
|
|
262,285
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders'
equity
|
$
|
2,972,968
|
|
|
|
|
|
|
|
|
$
|
3,231,372
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
|
$
|
61,423
|
|
|
|
|
|
|
|
|
$
|
68,388
|
|
|
|
|
|
Interest rate spread
(5)
|
|
|
|
|
|
|
|
2.84
|
%
|
|
|
|
|
|
|
|
|
2.93
|
%
|
|
Net interest margin
(6)
|
|
|
|
|
|
|
|
2.98
|
%
|
|
|
|
|
|
|
|
|
3.07
|
%
|
|
Ratio of average
interest-earning assets to
average interest-bearing liabilities
|
|
|
|
|
|
|
|
131
|
%
|
|
|
|
|
|
|
|
|
125
|
%
|
|
|
|
|
(1) Average
balances include non-accrual loans and loans
held-for-sale.
|
|
|
(2) Loan fees
are included in interest income and the amount is not material for
this analysis.
|
|
|
(3) Interest
earned on non-taxable investment securities is shown on a
tax-equivalent basis assuming a 35% marginal federal tax rate for
all
periods. The fully
taxable equivalent adjustments for the nine months ended September
30, 2014 and 2013 were $498 thousand and $554
thousand,
respectively.
|
|
|
(4) Amounts
include Advances from FHLBNY and Securities sold under agreements
to repurchase - FHLBNY.
|
|
|
(5) Interest
rate spread represents the difference between the average yield on
interest-earning assets and the average cost of
interest-bearing
liabilities.
|
|
|
(6) Net
interest margin represents net interest income as a percentage of
average interest-earning assets.
|
|
|
SUN BANCORP, INC.
AND SUBSIDIARIES
|
|
AVERAGE BALANCE
SHEETS (Unaudited)
|
(Dollars in
thousands)
|
|
|
|
|
|
|
For the
Three Months Ended
|
|
|
September 30,
2014
|
|
|
June 30,
2014
|
|
|
Average
|
|
Income/
|
|
Yield/
|
|
|
Average
|
|
Income/
|
|
Yield/
|
|
|
Balance
|
|
Expense
|
|
Cost
|
|
|
Balance
|
|
Expense
|
|
Cost
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable
(1),(2):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
$
|
1,292,705
|
|
$
|
14,438
|
|
|
4,47
|
%
|
|
$
|
1,480,491
|
|
$
|
15,385
|
|
|
4.16
|
%
|
Home equity
|
|
179,226
|
|
|
1,749
|
|
|
3.90
|
|
|
|
185,710
|
|
|
1,777
|
|
|
3.83
|
|
Second
mortgage
|
|
22,528
|
|
|
313
|
|
|
5.56
|
|
|
|
24,358
|
|
|
326
|
|
|
5.35
|
|
Residential real
estate
|
|
322,751
|
|
|
2,737
|
|
|
3.39
|
|
|
|
338,028
|
|
|
3,187
|
|
|
3.77
|
|
Other
|
|
3,755
|
|
|
70
|
|
|
7.46
|
|
|
|
23,196
|
|
|
391
|
|
|
6.74
|
|
Total loans
receivable
|
|
1,820,965
|
|
|
19,307
|
|
|
4.24
|
|
|
|
2,051,783
|
|
|
21,066
|
|
|
4.11
|
|
Investment securities
(3)
|
|
434,721
|
|
|
2,562
|
|
|
2.36
|
|
|
|
451,477
|
|
|
2,723
|
|
|
2.41
|
|
Interest-earning bank
balances
|
|
405,820
|
|
|
252
|
|
|
0.25
|
|
|
|
243,052
|
|
|
154
|
|
|
0.25
|
|
Total interest-earning
assets
|
|
2,661,506
|
|
|
22,121
|
|
|
3.32
|
|
|
|
2,746,312
|
|
|
23,943
|
|
|
3.49
|
|
Non-interest earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due
from banks
|
|
44,380
|
|
|
|
|
|
|
|
|
|
41,196
|
|
|
|
|
|
|
|
Restricted
cash
|
|
13,000
|
|
|
|
|
|
|
|
|
|
26,000
|
|
|
|
|
|
|
|
Bank
properties and equipment, net
|
|
46,162
|
|
|
|
|
|
|
|
|
|
47,586
|
|
|
|
|
|
|
|
Goodwill and
intangible assets, net
|
|
38,281
|
|
|
|
|
|
|
|
|
|
38,568
|
|
|
|
|
|
|
|
Other
assets
|
|
85,591
|
|
|
|
|
|
|
|
|
|
82,765
|
|
|
|
|
|
|
|
Total
non-interest-earning assets
|
|
227,414
|
|
|
|
|
|
|
|
|
|
236,115
|
|
|
|
|
|
|
|
Total
assets
|
$
|
2,888,920
|
|
|
|
|
|
|
|
|
$
|
2,982,427
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposit accounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
demand deposits
|
$
|
1,010,830
|
|
$
|
707
|
|
|
0.28
|
%
|
|
$
|
1,099,385
|
|
$
|
790
|
|
|
0.29
|
%
|
Savings
deposits
|
|
256,909
|
|
|
164
|
|
|
0.26
|
|
|
|
264,386
|
|
|
177
|
|
|
0.27
|
|
Time
deposits
|
|
549,092
|
|
|
1,186
|
|
|
0.86
|
|
|
|
582,840
|
|
|
1,223
|
|
|
0.84
|
|
Total interest-bearing
deposit
accounts
|
|
1,816,831
|
|
|
2,057
|
|
|
0.45
|
|
|
|
1,946,611
|
|
|
2,190
|
|
|
0.45
|
|
Short-term
borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities sold under
agreements to
repurchase - customers
|
|
875
|
|
|
-
|
|
|
-
|
|
|
|
598
|
|
|
-
|
|
|
-
|
|
Long-term
borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FHLBNY advances
(4)
|
|
60,845
|
|
|
318
|
|
|
2.09
|
|
|
|
60,887
|
|
|
315
|
|
|
2.07
|
|
Obligations under
capital lease
|
|
7,143
|
|
|
117
|
|
|
6.55
|
|
|
|
7,221
|
|
|
127
|
|
|
7.04
|
|
Junior subordinated
debentures
|
|
92,786
|
|
|
542
|
|
|
2.34
|
|
|
|
92,786
|
|
|
533
|
|
|
2.30
|
|
Total
borrowings
|
|
161,649
|
|
|
977
|
|
|
2.42
|
|
|
|
161,492
|
|
|
975
|
|
|
2.41
|
|
Total interest-bearing
liabilities
|
|
1,978,480
|
|
|
3,034
|
|
|
0.61
|
|
|
|
2,108,103
|
|
|
3,165
|
|
|
0.60
|
|
Non-interest bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing demand deposits
|
|
612,775
|
|
|
|
|
|
|
|
|
|
573,290
|
|
|
|
|
|
|
|
Other
liabilities
|
|
54,645
|
|
|
|
|
|
|
|
|
|
46,918
|
|
|
|
|
|
|
|
Total non-interest
bearing liabilities
|
|
667,420
|
|
|
|
|
|
|
|
|
|
620,208
|
|
|
|
|
|
|
|
Total
liabilities
|
|
2,645,900
|
|
|
|
|
|
|
|
|
|
2,728,311
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
243,020
|
|
|
|
|
|
|
|
|
|
254,116
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
2,888,920
|
|
|
|
|
|
|
|
|
$
|
2,982,427
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
|
$
|
19,087
|
|
|
|
|
|
|
|
|
$
|
20,778
|
|
|
|
|
Interest rate spread
(5)
|
|
|
|
|
|
|
|
2.71
|
%
|
|
|
|
|
|
|
|
|
2. 89
|
%
|
Net interest margin
(6)
|
|
|
|
|
|
|
|
2.87
|
%
|
|
|
|
|
|
|
|
|
3.03
|
%
|
Ratio of average
interest-earning assets to
average interest-bearing liabilities
|
|
|
|
|
|
|
|
135
|
%
|
|
|
|
|
|
|
|
|
130
|
%
|
|
|
(1) Average
balances include non-accrual loans and loans
held-for-sale.
|
|
(2) Loan fees
are included in interest income and the amount is not material for
this analysis.
|
|
(3) Interest
earned on non-taxable investment securities is shown on a
tax-equivalent basis assuming a 35% marginal federal tax rate for
all
periods. The fully
taxable equivalent adjustment for both the three months ended
September 30, 2014 and June 30, 2014 was $166 thousand.
|
|
(4) Amounts
include Advances from FHLBNY and Securities sold under agreements
to repurchase - FHLBNY.
|
|
(5) Interest
rate spread represents the difference between the average yield on
interest-earning assets and the average cost of
interest-bearing
liabilities.
|
|
(6) Net
interest margin represents net interest income as a percentage of
average interest-earning assets.
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/sun-bancorp-inc-announces-3q-2014-earnings-significant-progress-on-restructuring-initiative-improved-capital-ratios-and-asset-quality-management-team-enhancements-818130632.html
SOURCE Sun Bancorp, Inc.