MOUNT LAUREL, N.J.,
April 27, 2017 /PRNewswire/
--
First Quarter Highlights:
- Quarterly net income of $1.4
million, or $0.07 per diluted
share, compared to $826 thousand, or
$0.04 per diluted share, in the prior
year quarter; pre-tax earnings of $2.1
million compared to $1.1
million in the prior year quarter.
- Ongoing expense control with quarterly operating expenses of
$16.1 million in the first quarter as
compared to $16.5 million in the
prior year quarter.
- Average commercial loans grew 10% annualized in the first
quarter and 10% since March 31,
2016.
- No provision for loan losses in the first quarter as asset
quality remains strong; non-performing loans of $4.1 million represents 0.25% of total assets at
March 31, 2017.
- Solid foundation with Sun Bancorp, Inc.'s total risk-based
capital ratio of 21.9%, tier 1 common ratio of 15.8% and leverage
capital ratio of 14.5% at March 31,
2017.
- Board of Directors declared a dividend of $0.01 per share to holders of record of the
common stock of Sun Bancorp, Inc. on May 23,
2017, payable on June 6,
2017.
Sun Bancorp, Inc. (NASDAQ: SNBC), (the "Company"), the holding
company for Sun National Bank (the
"Bank"), today reported net income of $1.4
million, or $0.07 per diluted
share, for the quarter ended March 31,
2017, compared to net income of $56.0
million, or $2.94 per diluted
share, for the quarter ended December 31,
2016, and net income of $826
thousand, or $0.04 per diluted
share, for the quarter ended March 31,
2016. The quarter ended December 31,
2016 included a deferred tax asset valuation allowance
reversal of $53.7 million.
"This quarter's results are a continuation of the positive
direction we have seen in Sun's core profitability over the past
two years," stated President & CEO Thomas M. O'Brien. "Our strategy continues
to focus on growing relationship commercial real estate ("CRE") and
commercial and industrial ("C&I") loans, funded with
relationship deposits while maintaining a solid capital foundation
and conservative risk management practices. We believe that
this approach provides for consistently improved quality of
earnings over time."
Discussion of Results:
Balance Sheet
Total assets remained steady at March 31,
2017 as compared to December 31,
2016, at $2.26 billion for
both periods. Cash and cash equivalents totaled $128.9 million at March
31, 2017, as compared to $134.2
million at December 31,
2016. The decrease in cash and cash equivalents during the
first quarter of 2017 was primarily due to a $7.3 million reduction in deposits.
Investments increased by $3.8
million in the first quarter of 2017 to $315.6 million from $311.7
million in the prior linked quarter due to purchases of
investment securities, including $18.0
million of primarily variable rate mortgage-backed
securities, partially offset by $16.0
million in pay downs.
Net loans remained essentially flat at March 31, 2017 at $1.59
billion as compared to December 31,
2016, but the Bank continued to experience a shift in
business mix from consumer loans to relationship commercial
loans. Loan origination and refinancing activity in the CRE
business slowed during the first quarter due to higher interest
rates. As a result of the reduction in originations,
non-owner occupied CRE loans fell by $13.5
million in the first quarter. Offsetting this runoff,
the Bank experienced continued momentum in its C&I business
segment. The C&I segment, which includes owner-occupied
CRE and C&I, grew by $25.0
million in the first quarter. Offsetting this growth
was a continued reduction in residential and home equity loans
which fell by $11.0 million in the
first quarter as the result of the Bank's commercially-focused
strategy.
Net loans receivable increased by $34.8
million, or 2%, as compared to the quarter ended
March 31, 2016, primarily due to an
increase of $93.4 million, or 8%, in
the commercial loan portfolio and a decrease of $60.8 million, or 16%, in the consumer loan
portfolio. The C&I segment loans grew by $50.9 million, or 12%, and the CRE non-owner
occupied segment grew by $61.7
million, or 9%.
"The Bank's trend of growing the commercial loan book
continued," said O'Brien. "Although recent rate increases
have slowed some commercial activity, both the period-end and
average balances of our commercial loan portfolios increased in the
first quarter. We also saw a second consecutive quarter of
meaningful growth in our C&I business segment with growth of
$39.6 million, or 18% annualized,
since September 30, 2016.
Despite good commercial loan originations this quarter, total loans
outstanding remained essentially flat as commercial loan growth was
offset by both expected consumer loan runoff and commercial loan
pay offs. While the rising rate environment may temper
commercial loan demand, our team continues to evaluate quality
opportunities. We remain disciplined and have not compromised
our risk management approach at the expense of aggressive
growth."
Total deposits were $1.73 billion
at March 31, 2017, as compared to
$1.74 billion at December 31, 2016 and $1.70 billion at March 31,
2016. The cost of deposits increased by one basis point to
39 basis points compared to the prior linked quarter and increased
by nine basis points as compared to the three months ended
March 31, 2016 due to the impact of
the recent increase in market interest rates in 2016 and growth in
retail certificates of deposit. While total deposits fell by
$7.3 million in the first quarter,
approximately $12 million was from
activity in one large interest-bearing commercial deposit
account. Non-interest demand deposit accounts rose by
$7.9 million while retail
certificates of deposit grew by $5.3
million.
Net Interest Income and Margin
Net interest income was $14.8
million for the quarter ended March
31, 2017, compared to $14.5
million for the quarter ended March
31, 2016. Net interest income remained relatively flat
compared to the quarter ended December
31, 2016. The Company's net interest margin was 2.93%
for the three months ended March 31,
2017 and December 31, 2016, as
compared to 2.91% for the quarter ended March 31, 2016. The two basis point
increase in net interest margin from the quarter ended March 31, 2016 is due primarily to commercial
loan growth along with a reduction in low-yielding interest-earning
bank balances partially offset by the impact of an increase in the
average cost of time deposits as interest rates have increased.
"Recent increases in market interest rates can be expected to
provide some improvements in net interest margin due to our
asset-sensitive position," stated O'Brien. "We remain
diligent in our efforts to deploy liquidity prudently with a longer
term view."
Non-Interest Income
Non-interest income was $3.4
million for the quarter ended March
31, 2017, as compared to $3.3
million and $3.2 million for
the quarters ended December 31, 2016
and March 31, 2016,
respectively. The increase in non-interest income from the
quarter ended March 31, 2016 is due
primarily to two loan related fees totaling $550 thousand recorded in the first quarter of
2017. Deposit service charges and fees and investment
products income continue to be soft due to competitive pressures
and market uncertainty.
Non-Interest Expense
Non-interest expense for the first quarter of 2017 was
$16.1 million as compared to
$15.4 million for the three months
ended December 31, 2016 and
$16.5 million for the three months
ended March 31, 2016. The
increase in non-interest expense from the prior linked quarter is
due primarily to an increase of $956
thousand in salaries and benefits as a result of the timing
of accrual adjustments in the prior linked quarter and a seasonal
increase in payroll taxes in the three months ended March 31, 2017. This increase was partially
offset by decreases of $167 thousand
and $160 thousand related to
equipment and advertising expenses, respectively.
Non-interest expense for the first quarter of 2017 declined by
$462 thousand from the first quarter
of 2016, primarily due to a decrease of $393
thousand in insurance expense as a result of reductions in
FDIC assessment rates, a decrease of $181
thousand in salaries and employee benefit expense, as well
as a decrease of $169 thousand in
data processing expense due to efficiency gains, partially offset
by a $300 thousand expense related to
an outstanding letter of credit on a previously-sold legacy
loan.
"Historically, first quarter operating expenses at the Company
have been elevated above other quarters due to seasonal increases
in payroll and snow removal costs," said O'Brien. "However,
our diligent efforts in expense and vendor management led to
continued improvements over previous first quarter periods."
Asset Quality
Non-performing loans increased by $976
thousand to $4.1 million, or
0.25% of gross loans, at March 31,
2017 from $3.1 million, or
0.19% of gross loans, at December 31,
2016. This increase was primarily due to $978 thousand of residential mortgage loans
entering non-accrual status during the three months ended
March 31, 2017.
There was no provision for loan losses during the quarters ended
March 31, 2017, December 31, 2016 and March 31, 2016. In the first quarter of
2017, the Bank recorded net recoveries of $175 thousand as compared to net charge-offs of
$285 thousand in the fourth quarter
of 2016 and net charge-offs of $56
thousand in the first quarter of 2016. The allowance
for loan losses was $15.7 million, or
0.98% of gross loans at March 31,
2017 as compared to $15.5
million, or 0.97% of gross loans at December 31, 2016 and $18.0 million, or 1.14% of gross loans at
March 31, 2016. The allowance
for loan losses was 385% of non-performing loans at March 31, 2017 as compared to 501% at
December 31, 2016 and 460% at
March 31, 2016.
"We remain pleased with our strong asset quality metrics,"
stated O'Brien. "We will continue our practice of proactive
credit risk management."
Capital
The Company's capital ratios continue to remain strong due to
positive earnings and a relatively flat balance sheet. The
capital levels are sufficient to support the Company's anticipated
growth. At March 31, 2017, the Bank's
Tier 1 common equity risk-based capital ratio was 17.8%, total
risk-based capital ratio 18.8%, Tier 1 risk-based capital ratio
17.8% and leverage capital ratio 13.4%. At March 31, 2017, the Company's Tier 1 common
equity risk-based capital ratio, total risk-based capital ratio,
Tier 1 risk-based capital ratio and leverage capital ratio were
15.8%, 21.9%, 19.2%, and 14.5%, respectively. The Company's
tangible equity to tangible assets ratio was 12.8% at March 31, 2017, as compared to 12.7% at
December 31, 2016 and 10.4% at
March 31, 2016.
Dividend Declaration
On April 25, 2017, the Board of
Directors of the Company declared a dividend of $0.01 per share to holders of record of the
common stock of the Company as of May 23,
2017, payable on June 6,
2017.
"This represents the Company's fourth consecutive quarterly cash
dividend and represents another important milestone for Sun,"
stated O'Brien.
Conference Call
The Company will hold a conference call on Thursday, April 27, 2017 at 11:00 a.m. (EDT) 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:
- Participants Toll-Free Number:
888-239-5359
- Conference ID:
1700508
A transcript of the conference call will be available at the
Investor Relations section of www.sunnationalbank.com following the
call.
About Sun Bancorp, Inc.
Sun Bancorp, Inc. (NASDAQ: SNBC) is a $2.26 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,
and the metro New York region.
Sun National Bank is an Equal
Housing Lender and its deposits are insured up to the legal maximum
by the 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,
which may be identified by the use of such words as "allow,"
"anticipate," "believe," "continues," "could," "estimate,"
"expect," "intend," "may," "opportunity," "outlook,"
"plan," "potential," "predict," "project," "reflects,"
"should," "typically," "usually," "view," "will," "would," and
similar terms and phrases, including references to
assumptions. Examples of forward-looking statements include,
but are not limited to, estimates with respect to the financial
condition, results of operations and business of the Company and
the Bank, the banking industry, the economy in general,
expectations of the business environment in which the Company
operates, projections of future performance and other statements
contained herein that are not historical facts. These remarks
are based upon current management expectations, and may, therefore,
involve risks and uncertainties that cannot be predicted or
quantified and are beyond the Company's control and are subject to
a variety of uncertainties that could cause future results to vary
materially from the Company's historical performance, or from
current expectations. 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) the Company's
ability to attract and retain key management and staff; (ii)
changes in business strategy or an inability to successfully
execute strategy due to the occurrence of unanticipated events;
(iii) the ability to attract deposits and other sources of
liquidity; (iv) changes in the financial performance and/or
condition of the Bank's borrowers; (v) changes in consumer
spending, borrowing and saving habits; (vi) the ability to increase
market share and control expenses; (vii) changes in estimates of
future loan loss reserve requirements based upon the periodic
review thereof under relevant regulatory and accounting
requirements; (viii) local, regional and national economic
conditions and events and the impact they may have on the Company
and its customers; (ix) volatility in the credit and equity markets
and its effect on the general economy; (x) the credit risks of
lending activities, including changes in the level and trend of
loan delinquencies and write-offs; (xi) the overall quality of the
composition of the Company's loan and securities portfolios; (xii)
inflation, interest rate, securities market and monetary
fluctuations;(xiii) legislative and regulatory changes, including
the Dodd-Frank Wall Street Reform and Consumer Protection Act and
the implementing regulations, changes in banking, securities and
tax laws and regulations and their application by regulators and
changes in the scope and cost of the Federal Deposit Insurance
Corporation insurance and other coverages; (xiv) the effects of,
and changes in, monetary and fiscal policies and laws, including
interest rate policies of the Board of Governors of the Federal
Reserve System; (xv) competition among providers of financial
services; (xvi) other economic, competitive, governmental,
regulatory and technological factors affecting our operations,
pricing, products and services and the other risks 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, 2016 and in other filings made
pursuant to the Securities Exchange Act of 1934, as amended.
No undue reliance should be placed 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 such 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 tangible book value per common
share and return on average tangible equity, which are non-GAAP
financial measures. Management believes that tangible book value
per common share and return on average tangible equity are
meaningful financial measures because they are two of the measures
we use to assess capital adequacy.
Tangible book value per common share (dollars in
thousands)
The following reconciles shareholders' equity to tangible equity
by reducing shareholders' equity by the intangible asset balance at
March 31, 2017, December 31, 2016, September 30, 2016, June
30, 2016 and March 31,
2016.
|
|
March
31,
2017
|
|
|
December
31,
2016
|
|
|
September
30,
2016
|
|
|
June
30,
2016
|
|
|
March
31,
2016
|
|
Tangible book value
per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
$
|
322,816
|
|
|
$
|
319,709
|
|
|
$
|
265,878
|
|
|
$
|
264,172
|
|
|
$
|
259,457
|
|
Less: Intangible
assets
|
|
|
38,188
|
|
|
|
38,188
|
|
|
|
38,188
|
|
|
|
38,188
|
|
|
|
38,188
|
|
Tangible
equity
|
|
$
|
284,628
|
|
|
$
|
281,521
|
|
|
$
|
227,690
|
|
|
$
|
225,984
|
|
|
$
|
221,269
|
|
Common
stock
|
|
|
19,132
|
|
|
|
19,031
|
|
|
|
19,026
|
|
|
|
19,026
|
|
|
|
18,959
|
|
Less: Treasury
stock
|
|
|
75
|
|
|
|
108
|
|
|
|
138
|
|
|
|
172
|
|
|
|
176
|
|
Total outstanding
shares
|
|
|
19,057
|
|
|
|
18,923
|
|
|
|
18,888
|
|
|
|
18,854
|
|
|
|
18,783
|
|
Tangible book value
per common share:
|
|
$
|
14.94
|
|
|
$
|
14.88
|
|
|
$
|
12.05
|
|
|
$
|
11.99
|
|
|
$
|
11.78
|
|
Return on Average Tangible Equity (dollars in
thousands)
The following provides the calculation of return on tangible
equity for the three months ended March 31,
2017, December 31, 2016,
September 30, 2016, June 30, 2016 and March
31, 2016.
|
|
Three Months
Ended
|
|
|
|
March
31,
2017
|
|
|
December
31,
2016
|
|
|
September
30,
2016
|
|
|
June
30,
2016
|
|
|
March
31,
2016
|
|
Net income
|
|
$
|
1,430
|
|
|
$
|
56,000
|
|
|
$
|
1,630
|
|
|
$
|
2,963
|
|
|
$
|
826
|
|
Average tangible
equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shareholders'
equity
|
|
$
|
323,258
|
|
|
$
|
267,542
|
|
|
$
|
266,931
|
|
|
$
|
262,517
|
|
|
$
|
259,353
|
|
Less: Average
intangible assets
|
|
|
38,188
|
|
|
|
38,188
|
|
|
|
38,188
|
|
|
|
38,188
|
|
|
|
38,188
|
|
Average tangible
equity
|
|
$
|
285,070
|
|
|
$
|
229,354
|
|
|
$
|
228,743
|
|
|
$
|
224,329
|
|
|
$
|
221,165
|
|
Return on average
tangible equity(1):
|
|
|
2.0
|
%
|
|
|
97.7
|
%
|
|
|
2.9
|
%
|
|
|
5.3
|
%
|
|
|
1.5
|
%
|
(1)
Annualized
|
SUN BANCORP, INC AND
SUBSIDIARIES
FINANCIAL HIGHLIGHTS (Unaudited)
(Dollars in thousands, except share and per share
amounts)
|
|
|
|
For the Three
Months Ended
|
|
|
|
March
31,
|
|
|
December
31,
|
|
|
|
2017
|
|
|
2016
|
|
|
2016
|
|
Profitability for the
period:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
14,772
|
|
|
$
|
14,486
|
|
|
$
|
14,834
|
|
Provision for loan
losses
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Non-interest
income
|
|
|
3,431
|
|
|
|
3,164
|
|
|
|
3,311
|
|
Non-interest
expense
|
|
|
16,062
|
|
|
|
16,524
|
|
|
|
15,425
|
|
Income before income
taxes
|
|
|
2,141
|
|
|
|
1,126
|
|
|
|
2,720
|
|
Income tax expense
(benefit)
|
|
|
711
|
|
|
|
300
|
|
|
|
(53,280)
|
|
Net income available
to common shareholders
|
|
$
|
1,430
|
|
|
$
|
826
|
|
|
$
|
56,000
|
|
Financial
ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (1)
|
|
|
0.3
|
%
|
|
|
0.2
|
%
|
|
|
10.2
|
%
|
Return on average
equity (1)
|
|
|
1.8
|
%
|
|
|
1.3
|
%
|
|
|
83.7
|
%
|
Return on average
tangible equity (1), (2)
|
|
|
2.0
|
%
|
|
|
1.5
|
%
|
|
|
97.7
|
%
|
Net interest margin
(1)
|
|
|
2.93
|
%
|
|
|
2.91
|
%
|
|
|
2.93
|
%
|
Efficiency
ratio
|
|
|
88
|
%
|
|
|
94
|
%
|
|
|
85
|
%
|
Income per common
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.08
|
|
|
$
|
0.04
|
|
|
$
|
2.96
|
|
Diluted
|
|
$
|
0.07
|
|
|
$
|
0.04
|
|
|
$
|
2.94
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average equity to
average assets
|
|
|
14.4
|
%
|
|
|
11.9
|
%
|
|
|
12.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
|
December
31,
|
|
|
|
2017
|
|
|
2016
|
|
|
2016
|
|
At
period-end:
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
2,255,773
|
|
|
$
|
2,169,750
|
|
|
$
|
2,262,262
|
|
Total
deposits
|
|
|
1,733,989
|
|
|
|
1,703,902
|
|
|
|
1,741,363
|
|
Loans receivable, net
of allowance for loan losses
|
|
|
1,594,759
|
|
|
|
1,559,946
|
|
|
|
1,594,377
|
|
Investments
|
|
|
315,558
|
|
|
|
298,656
|
|
|
|
311,727
|
|
Borrowings
|
|
|
91,554
|
|
|
|
92,159
|
|
|
|
91,708
|
|
Junior subordinated
debentures
|
|
|
92,786
|
|
|
|
92,786
|
|
|
|
92,786
|
|
Shareholders'
equity
|
|
|
322,816
|
|
|
|
259,457
|
|
|
|
319,709
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit quality and
capital ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses to gross loans held-for-investment
|
|
|
0.98
|
%
|
|
|
1.14
|
%
|
|
|
0.97
|
%
|
Non-performing loans
held-for-investment to gross loans held-for-investment
|
|
|
0.25
|
%
|
|
|
0.25
|
%
|
|
|
0.19
|
%
|
Non-performing assets
to total assets
|
|
|
0.25
|
%
|
|
|
0.18
|
%
|
|
|
0.14
|
%
|
Allowance for loan
losses to non-performing loans held-for-investment
|
|
|
385
|
%
|
|
|
460
|
%
|
|
|
501
|
%
|
Tier 1 common equity
risk-based capital (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
Sun Bancorp,
Inc.
|
|
|
15.8
|
%
|
|
|
14.0
|
%
|
|
|
16.0
|
%
|
Sun National
Bank
|
|
|
17.8
|
%
|
|
|
17.7
|
%
|
|
|
18.9
|
%
|
Total risk-based
capital (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
Sun Bancorp,
Inc.
|
|
|
21.9
|
%
|
|
|
20.8
|
%
|
|
|
21.6
|
%
|
Sun National
Bank
|
|
|
18.8
|
%
|
|
|
18.9
|
%
|
|
|
19.8
|
%
|
Tier 1 risk-based
capital (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
Sun Bancorp,
Inc.
|
|
|
19.2
|
%
|
|
|
17.4
|
%
|
|
|
18.9
|
%
|
Sun National
Bank
|
|
|
17.8
|
%
|
|
|
17.7
|
%
|
|
|
18.9
|
%
|
Leverage capital
(3):
|
|
|
|
|
|
|
|
|
|
|
|
|
Sun Bancorp,
Inc.
|
|
|
14.5
|
%
|
|
|
13.0
|
%
|
|
|
14.6
|
%
|
Sun National
Bank
|
|
|
13.4
|
%
|
|
|
13.2
|
%
|
|
|
14.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common
share
|
|
$
|
16.94
|
|
|
$
|
13.81
|
|
|
$
|
16.90
|
|
Tangible book value
per common share
|
|
$
|
14.94
|
|
|
$
|
11.78
|
|
|
$
|
14.88
|
|
(1)
|
Annualized.
|
(2)
|
Return on average
tangible equity, a non-GAAP measure, 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)
|
March 31, 2017
capital ratios are estimated, subject to regulatory
filings.
|
SUN BANCORP, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited)
(Dollars in thousands, except share and per share
amounts)
|
|
|
|
March
31,
|
|
|
December
31,
|
|
|
|
2017
|
|
|
2016
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
|
$
|
20,737
|
|
|
$
|
19,645
|
|
Interest earning bank
balances
|
|
|
108,155
|
|
|
|
114,563
|
|
Cash and cash
equivalents
|
|
|
128,892
|
|
|
|
134,208
|
|
Restricted
cash
|
|
|
1,000
|
|
|
|
5,000
|
|
Investment securities
available for sale (amortized cost of $303,154 and $300,028
at March 31, 2017 and
December 31, 2016, respectively)
|
|
|
299,502
|
|
|
|
295,686
|
|
Investment securities
held to maturity (estimated fair value of $250
March 31, 2017 and December 31,
2016)
|
|
|
250
|
|
|
|
250
|
|
Loans receivable (net
of allowance for loan losses of $15,716 and $15,541
at March 31, 2017 and
December 31, 2016, respectively)
|
|
|
1,594,759
|
|
|
|
1,594,377
|
|
Restricted equity
investments, at cost
|
|
|
15,806
|
|
|
|
15,791
|
|
Bank properties and
equipment, net
|
|
|
29,432
|
|
|
|
30,148
|
|
Accrued interest
receivable
|
|
|
5,240
|
|
|
|
5,122
|
|
Goodwill
|
|
|
38,188
|
|
|
|
38,188
|
|
Bank owned life
insurance (BOLI)
|
|
|
83,593
|
|
|
|
83,109
|
|
Deferred taxes,
net
|
|
|
50,590
|
|
|
|
51,573
|
|
Other
assets
|
|
|
8,521
|
|
|
|
8,810
|
|
Total
assets
|
|
$
|
2,255,773
|
|
|
$
|
2,262,262
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
Deposits
|
|
$
|
1,733,989
|
|
|
$
|
1,741,363
|
|
Advances from the
Federal Home Loan Bank of New York (FHLBNY)
|
|
|
85,367
|
|
|
|
85,416
|
|
Obligations under
capital lease
|
|
|
6,187
|
|
|
|
6,292
|
|
Junior subordinated
debentures
|
|
|
92,786
|
|
|
|
92,786
|
|
Other
liabilities
|
|
|
14,628
|
|
|
|
16,696
|
|
Total
liabilities
|
|
|
1,932,957
|
|
|
|
1,942,553
|
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
|
Preferred stock, $1
par value, 1,000,000 shares authorized; none issued
|
|
|
—
|
|
|
|
—
|
|
Common stock, $5 par
value, 40,000,000 shares authorized; 19,132,414 shares issued
and 19,057,379 shares outstanding
at March 31, 2017; 19,030,704 shares issued and 18,922,726 shares
outstanding at December 31, 2016.
|
|
|
95,662
|
|
|
|
95,154
|
|
Additional paid-in
capital
|
|
|
508,353
|
|
|
|
508,593
|
|
Retained
deficit
|
|
|
(275,261)
|
|
|
|
(276,501)
|
|
Accumulated other
comprehensive loss
|
|
|
(2,160)
|
|
|
|
(2,568)
|
|
Deferred compensation
plan trust
|
|
|
(1,160)
|
|
|
|
(1,160)
|
|
Treasury stock at
cost, 75,035 shares at March 31, 2017 and 107,978 shares at
December 31, 2016.
|
|
|
(2,618)
|
|
|
|
(3,809)
|
|
Total shareholders'
equity
|
|
|
322,816
|
|
|
|
319,709
|
|
Total liabilities and
shareholders' equity
|
|
$
|
2,255,773
|
|
|
$
|
2,262,262
|
|
SUN BANCORP, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(Dollars in thousands, except share and per share
amounts)
|
|
|
|
For the Three
Months Ended
|
|
|
|
March
31,
|
|
|
|
2017
|
|
|
2016
|
|
INTEREST
INCOME:
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
|
$
|
15,673
|
|
|
$
|
15,031
|
|
Interest on taxable
investment securities
|
|
|
1,785
|
|
|
|
1,680
|
|
Dividends on
restricted equity investments
|
|
|
238
|
|
|
|
223
|
|
Total interest
income
|
|
|
17,696
|
|
|
|
16,934
|
|
INTEREST
EXPENSE:
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
|
|
1,686
|
|
|
|
1,292
|
|
Interest on funds
borrowed
|
|
|
531
|
|
|
|
544
|
|
Interest on junior
subordinated debentures
|
|
|
707
|
|
|
|
612
|
|
Total interest
expense
|
|
|
2,924
|
|
|
|
2,448
|
|
Net interest
income
|
|
|
14,772
|
|
|
|
14,486
|
|
PROVISION FOR LOAN
LOSSES
|
|
|
—
|
|
|
|
—
|
|
Net interest income
after provision for loan losses
|
|
|
14,772
|
|
|
|
14,486
|
|
NON-INTEREST
INCOME:
|
|
|
|
|
|
|
|
|
Deposit service
charges and fees
|
|
|
1,402
|
|
|
|
1,580
|
|
Interchange
fees
|
|
|
467
|
|
|
|
484
|
|
Investment products
income
|
|
|
284
|
|
|
|
377
|
|
BOLI income
|
|
|
484
|
|
|
|
508
|
|
Other
income
|
|
|
794
|
|
|
|
215
|
|
Total non-interest
income
|
|
|
3,431
|
|
|
|
3,164
|
|
NON-INTEREST
EXPENSE:
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
|
8,882
|
|
|
|
9,063
|
|
Occupancy
expense
|
|
|
2,350
|
|
|
|
2,339
|
|
Equipment
expense
|
|
|
1,157
|
|
|
|
1,090
|
|
Data processing
expense
|
|
|
1,019
|
|
|
|
1,188
|
|
Professional
fees
|
|
|
536
|
|
|
|
471
|
|
Insurance
expense
|
|
|
395
|
|
|
|
788
|
|
Advertising
expense
|
|
|
313
|
|
|
|
382
|
|
Problem loan
expense
|
|
|
134
|
|
|
|
33
|
|
Other
expense
|
|
|
1,276
|
|
|
|
1,170
|
|
Total non-interest
expense
|
|
|
16,062
|
|
|
|
16,524
|
|
INCOME BEFORE
INCOME TAXES
|
|
|
2,141
|
|
|
|
1,126
|
|
INCOME TAX
EXPENSE
|
|
|
711
|
|
|
|
300
|
|
NET INCOME
AVAILABLE TO COMMON
SHAREHOLDERS
|
|
$
|
1,430
|
|
|
$
|
826
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$
|
0.08
|
|
|
$
|
0.04
|
|
Diluted earnings per
share
|
|
$
|
0.07
|
|
|
$
|
0.04
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares - basic
|
|
|
18,986,015
|
|
|
|
18,739,739
|
|
Weighted average
shares - diluted
|
|
|
19,107,226
|
|
|
|
18,837,699
|
|
SUN BANCORP, INC. AND
SUBSIDIARIES
HISTORICAL TRENDS IN QUARTERLY FINANCIAL DATA (Unaudited)
(dollars in thousands)
|
|
|
|
2017
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
|
|
|
Q1
|
|
|
Q4
|
|
|
Q3
|
|
|
Q2
|
|
|
Q1
|
|
|
Profitability for the
quarter:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
14,772
|
|
|
$
|
14,834
|
|
|
$
|
14,712
|
|
|
$
|
14,872
|
|
|
$
|
14,486
|
|
|
Provision for
(recovery of) loan losses
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(1,682)
|
|
|
|
—
|
|
|
Non-interest
income
|
|
|
3,431
|
|
|
|
3,311
|
|
|
|
3,142
|
|
|
|
3,774
|
|
|
|
3,164
|
|
|
Non-interest
expense
|
|
|
16,062
|
|
|
|
15,425
|
|
|
|
15,937
|
|
|
|
17,066
|
|
|
|
16,524
|
|
|
Income before income
taxes
|
|
|
2,141
|
|
|
|
2,720
|
|
|
|
1,917
|
|
|
|
3,262
|
|
|
|
1,126
|
|
|
Income tax expense
(benefit)
|
|
|
711
|
|
|
|
(53,280)
|
|
|
|
287
|
|
|
|
299
|
|
|
|
300
|
|
|
Net income available
to common shareholders
|
|
$
|
1,430
|
|
|
$
|
56,000
|
|
|
$
|
1,630
|
|
|
$
|
2,963
|
|
|
$
|
826
|
|
|
Financial
ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (1)
|
|
|
0.3
|
%
|
|
|
10.2
|
%
|
|
|
0.3
|
%
|
|
|
0.5
|
%
|
|
|
0.2
|
%
|
|
Return on average
equity (1)
|
|
1.8
|
%
|
|
|
83.7
|
%
|
|
|
2.4
|
%
|
|
|
4.5
|
%
|
|
|
1.3
|
%
|
|
Return on average
tangible equity (1), (2)
|
|
|
2.0
|
%
|
|
|
97.7
|
%
|
|
|
2.9
|
%
|
|
|
5.3
|
%
|
|
|
1.5
|
%
|
|
Net interest margin
(1)
|
|
|
2.93
|
%
|
|
|
2.93
|
%
|
|
|
2.94
|
%
|
|
|
2.98
|
%
|
|
|
2.91
|
%
|
|
Efficiency
ratio
|
|
|
88
|
%
|
|
|
85
|
%
|
|
|
89
|
%
|
|
|
93
|
%
|
|
|
94
|
%
|
|
Per share
data :
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per common
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.08
|
|
|
$
|
2.96
|
|
|
$
|
0.09
|
|
|
$
|
0.16
|
|
|
$
|
0.04
|
|
|
Diluted
|
|
$
|
0.07
|
|
|
$
|
2.94
|
|
|
$
|
0.09
|
|
|
$
|
0.16
|
|
|
$
|
0.04
|
|
|
Book value
|
|
$
|
16.94
|
|
|
$
|
16.90
|
|
|
$
|
14.08
|
|
|
$
|
14.01
|
|
|
$
|
13.81
|
|
|
Tangible book
value
|
|
$
|
14.94
|
|
|
$
|
14.88
|
|
|
$
|
12.05
|
|
|
$
|
11.99
|
|
|
$
|
11.78
|
|
|
Cash dividends
paid
|
|
$
|
0.01
|
|
|
$
|
0.01
|
|
|
$
|
0.01
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Average basic
shares
|
|
|
18,986,015
|
|
|
|
18,908,688
|
|
|
|
18,874,577
|
|
|
|
18,848,236
|
|
|
|
18,739,739
|
|
|
Average diluted
shares
|
|
|
19,107,226
|
|
|
|
19,016,188
|
|
|
|
18,962,740
|
|
|
|
18,957,201
|
|
|
|
18,837,699
|
|
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit service
charges and fees
|
|
$
|
1,402
|
|
|
$
|
1,484
|
|
|
$
|
1,540
|
|
|
$
|
1,618
|
|
|
$
|
1,580
|
|
|
Interchange
fees
|
|
|
467
|
|
|
|
483
|
|
|
|
451
|
|
|
|
486
|
|
|
|
484
|
|
|
Gain on sale of
investment securities
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
426
|
|
|
|
—
|
|
|
Gain on sale of
loans
|
|
|
—
|
|
|
|
60
|
|
|
|
41
|
|
|
|
—
|
|
|
|
—
|
|
|
Investment products
income
|
|
|
284
|
|
|
|
288
|
|
|
|
505
|
|
|
|
538
|
|
|
|
377
|
|
|
BOLI income
|
|
|
484
|
|
|
|
452
|
|
|
|
485
|
|
|
|
489
|
|
|
|
508
|
|
|
Other
income
|
|
|
794
|
|
|
|
544
|
|
|
|
120
|
|
|
|
217
|
|
|
|
215
|
|
|
Total non-interest
income
|
|
$
|
3,431
|
|
|
$
|
3,311
|
|
|
$
|
3,142
|
|
|
$
|
3,774
|
|
|
$
|
3,164
|
|
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
$
|
8,882
|
|
|
$
|
7,926
|
|
|
$
|
8,649
|
|
|
$
|
9,333
|
|
|
$
|
9,063
|
|
|
Occupancy
expense
|
|
|
2,350
|
|
|
|
2,232
|
|
|
|
2,273
|
|
|
|
2,144
|
|
|
|
2,339
|
|
|
Equipment
expense
|
|
|
1,157
|
|
|
|
1,324
|
|
|
|
1,303
|
|
|
|
1,068
|
|
|
|
1,090
|
|
|
Data processing
expense
|
|
|
1,019
|
|
|
|
1,124
|
|
|
|
1,116
|
|
|
|
1,075
|
|
|
|
1,188
|
|
|
Professional
fees
|
|
|
536
|
|
|
|
508
|
|
|
|
730
|
|
|
|
537
|
|
|
|
471
|
|
|
Insurance
expense
|
|
|
395
|
|
|
|
368
|
|
|
|
452
|
|
|
|
556
|
|
|
|
788
|
|
|
Advertising
expense
|
|
|
313
|
|
|
|
473
|
|
|
|
412
|
|
|
|
393
|
|
|
|
382
|
|
|
Problem loan
expenses
|
|
|
134
|
|
|
|
61
|
|
|
|
131
|
|
|
|
187
|
|
|
|
33
|
|
|
Other
expenses
|
|
|
1,276
|
|
|
|
1,409
|
|
|
|
871
|
|
|
|
1,773
|
|
|
|
1,170
|
|
|
Total non-interest
expense
|
|
$
|
16,062
|
|
|
$
|
15,425
|
|
|
$
|
15,937
|
|
|
$
|
17,066
|
|
|
$
|
16,524
|
|
|
(1)
|
Annualized.
|
(2)
|
Return on average
tangible equity, a non-GAAP measure, 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.
|
SUN BANCORP, INC. AND
SUBSIDIARIES
HISTORICAL TRENDS IN QUARTERLY FINANCIAL DATA
(Unaudited)
(dollars in thousands)
|
|
|
|
2017
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
|
|
Q1
|
|
|
Q4
|
|
|
Q3
|
|
|
Q2
|
|
|
Q1
|
|
Balance Sheet at
quarter end:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
128,892
|
|
|
$
|
134,208
|
|
|
$
|
156,292
|
|
|
$
|
168,799
|
|
|
$
|
136,238
|
|
Restricted
cash
|
|
|
1,000
|
|
|
|
5,000
|
|
|
|
5,000
|
|
|
|
5,000
|
|
|
|
5,000
|
|
Investment
securities
|
|
|
315,558
|
|
|
|
311,727
|
|
|
|
308,031
|
|
|
|
296,714
|
|
|
|
298,656
|
|
Loans
held-for-investment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial
|
|
|
230,306
|
|
|
|
235,946
|
|
|
|
226,493
|
|
|
|
220,609
|
|
|
|
222,828
|
|
Commercial real estate
- owner occupied
|
|
|
261,971
|
|
|
|
231,348
|
|
|
|
226,165
|
|
|
|
225,520
|
|
|
|
218,598
|
|
Commercial real estate
- non-owner occupied
|
|
|
729,102
|
|
|
|
742,662
|
|
|
|
676,323
|
|
|
|
666,345
|
|
|
|
667,401
|
|
Land and
development
|
|
|
67,336
|
|
|
|
67,165
|
|
|
|
84,692
|
|
|
|
82,018
|
|
|
|
86,520
|
|
Residential real
estate
|
|
|
205,573
|
|
|
|
210,874
|
|
|
|
226,691
|
|
|
|
237,080
|
|
|
|
241,891
|
|
Home equity and
other
|
|
|
116,187
|
|
|
|
121,923
|
|
|
|
126,302
|
|
|
|
132,912
|
|
|
|
140,660
|
|
Total loans
|
|
|
1,610,475
|
|
|
|
1,609,918
|
|
|
|
1,566,666
|
|
|
|
1,564,484
|
|
|
|
1,577,898
|
|
Allowance for loan
losses
|
|
|
(15,716)
|
|
|
|
(15,541)
|
|
|
|
(15,827)
|
|
|
|
(15,891)
|
|
|
|
(17,952)
|
|
Net loans
held-for-investment
|
|
|
1,594,759
|
|
|
|
1,594,377
|
|
|
|
1,550,839
|
|
|
|
1,548,593
|
|
|
|
1,559,946
|
|
Loans
held-for-sale
|
|
|
—
|
|
|
|
—
|
|
|
|
1,450
|
|
|
|
540
|
|
|
|
—
|
|
Goodwill
|
|
|
38,188
|
|
|
|
38,188
|
|
|
|
38,188
|
|
|
|
38,188
|
|
|
|
38,188
|
|
Total
assets
|
|
|
2,255,773
|
|
|
|
2,262,262
|
|
|
|
2,189,346
|
|
|
|
2,186,982
|
|
|
|
2,169,750
|
|
Net deferred tax
asset, before valuation allowance
|
|
|
124,256
|
|
|
|
125,238
|
|
|
|
124,574
|
|
|
|
125,051
|
|
|
|
126,744
|
|
Deferred tax valuation
allowance
|
|
|
(73,665)
|
|
|
|
(73,665)
|
|
|
|
(127,973)
|
|
|
|
(128,362)
|
|
|
|
(129,248)
|
|
Total
deposits
|
|
|
1,733,989
|
|
|
|
1,741,363
|
|
|
|
1,717,634
|
|
|
|
1,713,665
|
|
|
|
1,703,902
|
|
Advances from the
FHLBNY
|
|
|
85,367
|
|
|
|
85,416
|
|
|
|
85,465
|
|
|
|
85,513
|
|
|
|
85,560
|
|
Obligations under
capital leases
|
|
|
6,187
|
|
|
|
6,292
|
|
|
|
6,396
|
|
|
|
6,498
|
|
|
|
6,599
|
|
Junior subordinated
debentures
|
|
|
92,786
|
|
|
|
92,786
|
|
|
|
92,786
|
|
|
|
92,786
|
|
|
|
92,786
|
|
Total shareholders'
equity
|
|
|
322,816
|
|
|
|
319,709
|
|
|
|
265,878
|
|
|
|
264,172
|
|
|
|
259,457
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly average
balance sheet:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
held-for-investment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
$
|
1,270,543
|
|
|
$
|
1,238,749
|
|
|
$
|
1,215,135
|
|
|
$
|
1,197,368
|
|
|
$
|
1,159,715
|
|
Residential real
estate
|
|
|
209,500
|
|
|
|
220,502
|
|
|
|
233,277
|
|
|
|
240,884
|
|
|
|
247,489
|
|
Home equity and
other
|
|
|
117,963
|
|
|
|
122,290
|
|
|
|
128,078
|
|
|
|
136,330
|
|
|
|
141,851
|
|
Total loans
|
|
|
1,598,006
|
|
|
|
1,581,541
|
|
|
|
1,576,490
|
|
|
|
1,574,582
|
|
|
|
1,549,055
|
|
Securities and other
interest-earning assets
|
|
|
417,171
|
|
|
|
442,409
|
|
|
|
425,042
|
|
|
|
422,667
|
|
|
|
443,303
|
|
Total interest-earning
assets
|
|
|
2,015,177
|
|
|
|
2,023,950
|
|
|
|
2,001,532
|
|
|
|
1,997,249
|
|
|
|
1,992,358
|
|
Total
assets
|
|
|
2,240,787
|
|
|
|
2,201,886
|
|
|
|
2,187,482
|
|
|
|
2,179,400
|
|
|
|
2,175,796
|
|
Non-interest-bearing
demand deposits
|
|
|
402,949
|
|
|
|
411,728
|
|
|
|
402,465
|
|
|
|
393,922
|
|
|
|
417,469
|
|
Total
deposits
|
|
|
1,717,848
|
|
|
|
1,731,312
|
|
|
|
1,709,863
|
|
|
|
1,707,574
|
|
|
|
1,709,820
|
|
Total interest-bearing
liabilities
|
|
|
1,499,303
|
|
|
|
1,504,138
|
|
|
|
1,492,139
|
|
|
|
1,498,510
|
|
|
|
1,477,356
|
|
Total shareholders'
equity
|
|
|
323,258
|
|
|
|
267,542
|
|
|
|
266,931
|
|
|
|
262,517
|
|
|
|
259,353
|
|
SUN BANCORP, INC. AND
SUBSIDIARIES
HISTORICAL TRENDS IN QUARTERLY FINANCIAL DATA
(Unaudited)
(dollars in thousands)
|
|
|
|
2017
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
|
|
Q1
|
|
|
Q4
|
|
|
Q3
|
|
|
Q2
|
|
|
Q1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital and credit
quality measures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 common equity
risk-based capital (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sun Bancorp,
Inc.
|
|
|
15.8
|
%
|
|
|
16.0
|
%
|
|
|
14.5
|
%
|
|
|
14.3
|
%
|
|
|
14.0
|
%
|
Sun National
Bank
|
|
|
17.8
|
%
|
|
|
18.9
|
%
|
|
|
18.3
|
%
|
|
|
18.1
|
%
|
|
|
17.7
|
%
|
Total risk-based
capital (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sun Bancorp,
Inc.
|
|
|
21.9
|
%
|
|
|
21.6
|
%
|
|
|
21.2
|
%
|
|
|
21.0
|
%
|
|
|
20.8
|
%
|
Sun National
Bank
|
|
|
18.8
|
%
|
|
|
19.8
|
%
|
|
|
19.3
|
%
|
|
|
19.1
|
%
|
|
|
18.9
|
%
|
Tier 1 risk-based
capital (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sun Bancorp,
Inc.
|
|
|
19.2
|
%
|
|
|
18.9
|
%
|
|
|
18.1
|
%
|
|
|
17.9
|
%
|
|
|
17.4
|
%
|
Sun National
Bank
|
|
|
17.8
|
%
|
|
|
18.9
|
%
|
|
|
18.3
|
%
|
|
|
18.1
|
%
|
|
|
17.7
|
%
|
Leverage capital
(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sun Bancorp,
Inc.
|
|
|
14.5
|
%
|
|
|
14.6
|
%
|
|
|
13.3
|
%
|
|
|
13.2
|
%
|
|
|
13.0
|
%
|
Sun National
Bank
|
|
|
13.4
|
%
|
|
|
14.5
|
%
|
|
|
13.4
|
%
|
|
|
13.3
|
%
|
|
|
13.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average equity to
average assets
|
|
|
14.4
|
%
|
|
|
12.2
|
%
|
|
|
12.2
|
%
|
|
|
12.0
|
%
|
|
|
11.9
|
%
|
Allowance for loan
losses to gross loans held-for-investment
|
|
|
0.98
|
%
|
|
|
0.97
|
%
|
|
|
1.01
|
%
|
|
|
1.02
|
%
|
|
|
1.14
|
%
|
Non-performing loans
held-for-investment to gross loans held-for-investment
|
|
|
0.25
|
%
|
|
|
0.19
|
%
|
|
|
0.42
|
%
|
|
|
0.35
|
%
|
|
|
0.25
|
%
|
Non-performing assets
to total assets
|
|
|
0.18
|
%
|
|
|
0.14
|
%
|
|
|
0.31
|
%
|
|
|
0.27
|
%
|
|
|
0.18
|
%
|
Allowance for loan
losses to non-performing loans held-for-investment
|
|
|
385
|
%
|
|
|
501
|
%
|
|
|
238
|
%
|
|
|
289
|
%
|
|
|
460
|
%
|
Other
data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net recoveries
(charge-offs)
|
|
|
175
|
|
|
|
(285)
|
|
|
|
(65)
|
|
|
|
(378)
|
|
|
|
(56)
|
|
Classified
loans
|
|
|
7,752
|
|
|
|
6,887
|
|
|
|
8,593
|
|
|
|
9,310
|
|
|
|
7,812
|
|
Classified
assets
|
|
|
10,958
|
|
|
|
10,094
|
|
|
|
11,799
|
|
|
|
12,516
|
|
|
|
11,018
|
|
Non-performing
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-accrual
loans
|
|
|
2,682
|
|
|
|
1,697
|
|
|
|
3,246
|
|
|
|
2,580
|
|
|
|
3,066
|
|
Non-accrual loans
held-for-sale
|
|
|
—
|
|
|
|
—
|
|
|
|
178
|
|
|
|
332
|
|
|
|
—
|
|
Troubled debt
restructurings, non-accrual
|
|
|
1,395
|
|
|
|
1,404
|
|
|
|
3,396
|
|
|
|
2,918
|
|
|
|
838
|
|
Total non-performing
assets
|
|
$
|
4,077
|
|
|
$
|
3,101
|
|
|
$
|
6,820
|
|
|
$
|
5,830
|
|
|
$
|
3,904
|
|
(1)
|
March 31, 2017
capital ratios are estimated, subject to regulatory
filings.
|
SUN BANCORP, INC. AND
SUBSIDIARIES
AVERAGE BALANCE SHEETS (Unaudited)
(dollars in thousands)
|
|
|
|
For the Three
Months Ended
|
|
|
For the Three
Months Ended
|
|
|
|
|
March 31,
2017
|
|
|
March 31,
2016
|
|
|
|
|
Average
|
|
|
|
|
|
|
Average
|
|
|
Average
|
|
|
|
|
|
|
Average
|
|
|
|
|
Balance
|
|
|
Interest
|
|
|
Yield/Cost
|
|
|
Balance
|
|
|
Interest
|
|
|
Yield/Cost
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable
(1), (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
$
|
1,270,543
|
|
|
$
|
12,617
|
|
|
|
3.97
|
|
%
|
$
|
1,159,715
|
|
|
$
|
11,429
|
|
|
|
3.94
|
|
%
|
Home equity and
other
|
|
|
117,963
|
|
|
|
1,258
|
|
|
|
4.27
|
|
|
|
141,851
|
|
|
|
1,497
|
|
|
|
4.22
|
|
|
Residential real
estate
|
|
|
209,500
|
|
|
|
1,799
|
|
|
|
3.43
|
|
|
|
247,489
|
|
|
|
2,105
|
|
|
|
3.40
|
|
|
Total loans
receivable
|
|
|
1,598,006
|
|
|
|
15,674
|
|
|
|
3.92
|
|
|
|
1,549,055
|
|
|
|
15,031
|
|
|
|
3.88
|
|
|
Investment
securities
|
|
|
308,261
|
|
|
|
1,807
|
|
|
|
2.34
|
|
|
|
295,105
|
|
|
|
1,717
|
|
|
|
2.33
|
|
|
Interest-earning bank
balances
|
|
|
108,910
|
|
|
|
215
|
|
|
|
0.79
|
|
|
|
148,198
|
|
|
|
187
|
|
|
|
0.50
|
|
|
Total interest-earning
assets
|
|
|
2,015,177
|
|
|
|
17,696
|
|
|
|
3.51
|
|
|
|
1,992,358
|
|
|
|
16,935
|
|
|
|
3.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
non-interest-earning assets
|
|
|
225,610
|
|
|
|
|
|
|
|
|
|
|
|
183,438
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
2,240,787
|
|
|
|
|
|
|
|
|
|
|
$
|
2,175,796
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposit accounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
demand deposit
|
|
$
|
667,152
|
|
|
|
389
|
|
|
|
0.23
|
|
%
|
$
|
711,631
|
|
|
|
359
|
|
|
|
0.20
|
|
%
|
Savings
deposits
|
|
|
240,407
|
|
|
|
201
|
|
|
|
0.33
|
|
|
|
229,070
|
|
|
|
169
|
|
|
|
0.30
|
|
|
Time
deposits
|
|
|
407,340
|
|
|
|
1,096
|
|
|
|
1.08
|
|
|
|
351,650
|
|
|
|
764
|
|
|
|
0.87
|
|
|
Total interest-bearing
deposit accounts
|
|
|
1,314,899
|
|
|
|
1,686
|
|
|
|
0.51
|
|
|
|
1,292,351
|
|
|
|
1,292
|
|
|
|
0.40
|
|
|
Long-term
borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FHLBNY
Advances
|
|
|
85,384
|
|
|
|
424
|
|
|
|
1.99
|
|
|
|
85,576
|
|
|
|
431
|
|
|
|
2.01
|
|
|
Obligations under
capital lease
|
|
|
6,234
|
|
|
|
107
|
|
|
|
6.87
|
|
|
|
6,643
|
|
|
|
114
|
|
|
|
6.86
|
|
|
Junior subordinated
debentures
|
|
|
92,786
|
|
|
|
707
|
|
|
|
3.05
|
|
|
|
92,786
|
|
|
|
612
|
|
|
|
2.64
|
|
|
Total
borrowings
|
|
|
184,404
|
|
|
|
1,238
|
|
|
|
2.69
|
|
|
|
185,005
|
|
|
|
1,157
|
|
|
|
2.50
|
|
|
Total
interest-bearing liabilities
|
|
|
1,499,303
|
|
|
|
2,924
|
|
|
|
0.78
|
|
|
|
1,477,356
|
|
|
|
2,449
|
|
|
|
0.66
|
|
|
Non-interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing
demand deposits
|
|
|
402,949
|
|
|
|
|
|
|
|
|
|
|
|
417,469
|
|
|
|
|
|
|
|
|
|
|
Other
liabilities
|
|
|
15,277
|
|
|
|
|
|
|
|
|
|
|
|
21,618
|
|
|
|
|
|
|
|
|
|
|
Total
non-interest-bearing liabilities
|
|
|
418,226
|
|
|
|
|
|
|
|
|
|
|
|
439,087
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
1,917,529
|
|
|
|
|
|
|
|
|
|
|
|
1,916,443
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
323,258
|
|
|
|
|
|
|
|
|
|
|
|
259,353
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
$
|
2,240,787
|
|
|
|
|
|
|
|
|
|
|
$
|
2,175,796
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
|
|
|
$
|
14,772
|
|
|
|
|
|
|
|
|
|
|
$
|
14,486
|
|
|
|
|
|
|
Interest rate spread
(3)
|
|
|
|
|
|
|
|
|
|
|
2.73
|
|
%
|
|
|
|
|
|
|
|
|
|
2.74
|
|
%
|
Net interest margin
(4)
|
|
|
|
|
|
|
|
|
|
|
2.93
|
|
%
|
|
|
|
|
|
|
|
|
|
2.91
|
|
%
|
Ratio of average
interest-earning assets
to
average interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
134
|
|
%
|
|
|
|
|
|
|
|
|
|
135
|
|
%
|
(1)
|
Average balances
include non-accrual loans.
|
(2)
|
Loan fees are
included in interest income and the amount is not material for this
analysis.
|
(3)
|
Interest rate spread
represents the difference between the average yield on
interest-earning assets and the average cost of interest-bearing
liabilities.
|
(4)
|
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
|
|
|
For the Three
Months Ended
|
|
|
|
|
March 31,
2017
|
|
|
December 31,
2016
|
|
|
|
|
Average
|
|
|
|
|
|
|
Average
|
|
|
Average
|
|
|
|
|
|
|
Average
|
|
|
|
|
Balance
|
|
|
Interest
|
|
|
Yield/Cost
|
|
|
Balance
|
|
|
Interest
|
|
|
Yield/Cost
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable
(1), (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
$
|
1,270,543
|
|
|
$
|
12,617
|
|
|
|
3.97
|
|
%
|
$
|
1,238,749
|
|
|
$
|
12,605
|
|
|
|
4.07
|
|
%
|
Home equity and
other
|
|
|
117,963
|
|
|
|
1,258
|
|
|
|
4.27
|
|
|
|
122,290
|
|
|
|
1,295
|
|
|
|
4.24
|
|
|
Residential real
estate
|
|
|
209,500
|
|
|
|
1,799
|
|
|
|
3.43
|
|
|
|
220,502
|
|
|
|
1,834
|
|
|
|
3.33
|
|
|
Total loans
receivable
|
|
|
1,598,006
|
|
|
|
15,674
|
|
|
|
3.92
|
|
|
|
1,581,541
|
|
|
|
15,734
|
|
|
|
3.98
|
|
|
Investment
securities
|
|
|
308,261
|
|
|
|
1,807
|
|
|
|
2.34
|
|
|
|
312,431
|
|
|
|
1,800
|
|
|
|
2.30
|
|
|
Interest-earning bank
balances
|
|
|
108,910
|
|
|
|
215
|
|
|
|
0.79
|
|
|
|
129,978
|
|
|
|
183
|
|
|
|
0.56
|
|
|
Total interest-earning
assets
|
|
|
2,015,177
|
|
|
|
17,696
|
|
|
|
3.51
|
|
|
|
2,023,950
|
|
|
|
17,717
|
|
|
|
3.50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
non-interest-earning assets
|
|
|
225,610
|
|
|
|
|
|
|
|
|
|
|
|
177,936
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
2,240,787
|
|
|
|
|
|
|
|
|
|
|
$
|
2,201,886
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposit accounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
demand deposits
|
|
$
|
667,152
|
|
|
|
389
|
|
|
|
0.23
|
|
%
|
$
|
677,815
|
|
|
$
|
392
|
|
|
|
0.23
|
|
%
|
Savings
deposits
|
|
|
240,407
|
|
|
|
201
|
|
|
|
0.33
|
|
|
|
241,746
|
|
|
|
204
|
|
|
|
0.34
|
|
|
Time
deposits
|
|
|
407,340
|
|
|
|
1,096
|
|
|
|
1.08
|
|
|
|
400,023
|
|
|
|
1,057
|
|
|
|
1.06
|
|
|
Total interest-bearing
deposit accounts
|
|
|
1,314,899
|
|
|
|
1,686
|
|
|
|
0.51
|
|
|
|
1,319,584
|
|
|
|
1,653
|
|
|
|
0.50
|
|
|
Long-term
borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FHLB
advances
|
|
|
85,384
|
|
|
|
424
|
|
|
|
1.99
|
|
|
|
85,433
|
|
|
|
434
|
|
|
|
2.03
|
|
|
Obligations under
capital lease
|
|
|
6,234
|
|
|
|
107
|
|
|
|
6.87
|
|
|
|
6,335
|
|
|
|
109
|
|
|
|
6.88
|
|
|
Junior subordinated
debentures
|
|
|
92,786
|
|
|
|
707
|
|
|
|
3.05
|
|
|
|
92,786
|
|
|
|
688
|
|
|
|
2.97
|
|
|
Total
borrowings
|
|
|
184,404
|
|
|
|
1,238
|
|
|
|
2.69
|
|
|
|
184,554
|
|
|
|
1,231
|
|
|
|
2.67
|
|
|
Total
interest-bearing liabilities
|
|
|
1,499,303
|
|
|
|
2,924
|
|
|
|
0.78
|
|
|
|
1,504,138
|
|
|
|
2,884
|
|
|
|
0.77
|
|
|
Non-interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing
demand deposits
|
|
|
402,949
|
|
|
|
|
|
|
|
|
|
|
|
411,728
|
|
|
|
|
|
|
|
|
|
|
Other
liabilities
|
|
|
15,277
|
|
|
|
|
|
|
|
|
|
|
|
18,478
|
|
|
|
|
|
|
|
|
|
|
Total
non-interest-bearing liabilities
|
|
|
418,226
|
|
|
|
|
|
|
|
|
|
|
|
430,206
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
1,917,529
|
|
|
|
|
|
|
|
|
|
|
|
1,934,344
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
323,258
|
|
|
|
|
|
|
|
|
|
|
|
267,542
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
$
|
2,240,787
|
|
|
|
|
|
|
|
|
|
|
$
|
2,201,886
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
|
|
|
$
|
14,772
|
|
|
|
|
|
|
|
|
|
|
$
|
14,833
|
|
|
|
|
|
|
Interest rate spread
(3)
|
|
|
|
|
|
|
|
|
|
|
2.73
|
|
%
|
|
|
|
|
|
|
|
|
|
2.73
|
|
%
|
Net interest margin
(4)
|
|
|
|
|
|
|
|
|
|
|
2.93
|
|
%
|
|
|
|
|
|
|
|
|
|
2.93
|
|
%
|
Ratio of average
interest-earning assets
to
average interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
134
|
|
%
|
|
|
|
|
|
|
|
|
|
135
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 rate spread
represents the difference between the average yield on
interest-earning assets and the average cost of interest-bearing
liabilities.
|
(4)
|
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-first-quarter-net-income-of-14-million-or-007-per-diluted-share-board-of-directors-declares-quarterly-dividend-of-001-300446919.html
SOURCE Sun Bancorp, Inc.