Sun Bank: After big losses, we’re making progress

MOUNT LAUREL – Sun Bancorp., the parent firm of Sun National Bank, has reported a quarterly loss of $2.8 million, capping a nearly $30 million deficit for 2014.

Yet the Mount Laurel-based company stated it had made significant progress in its efforts to restructure the firm.

“During the fourth quarter, we brought several facets of our restructuring plans to completion, including the successful exit from our Sun Home Loans residential mortgage banking business and asset-based lending,” President and CEO Thomas O’Brien said Monday.

O’Brien was named president of Sun Bancorp in July after the firm announced plans to cut 242 jobs, or almost 40 percent of its workforce, as part of its turnaround effort. The firm, which previously was based in Vineland, lost almost $60 million in 2012 and 2013.

The $2.8 million deficit represented a loss of 15 cents per share for the quarter ending Dec. 31. A net loss of $8.2 million at the end of 2013 meant a loss of 47 cents per share.

“In addition,” continued O’Brien, “we took further actions to rationalize our expense base, which included the consolidation of three branches.”

Sun began in 1985 with a single branch in Medford. It now has 47 branches, with assets of $2.72 billion.

The firm said non-interest expenses fell 27 percent to $23.7 million for the fourth quarter of 2014, compared with $32.5 million for the fourth quarter last year. Sun also reported its average interest-earning cash balances grew 24 percent during the quarter to $504.5 million.

O’Brien predicted the firm could soon get out of the red.

“We enter 2015 in much stronger financial condition with the prospects for profitability finally in sight,” he said. “Nonetheless, much remains to be done and our energies remain focused on concluding the difficult chapter of the past few years.”