Loan losses reverse Sun Bancorp's year-ago profit

Loan losses revers Sun Bancorp's year-ago profit for third quarter

• On 2:50 pm EDT, Tuesday October 27, 2009

VINELAND, N.J. (AP) -- Community bank owner Sun Bancorp Inc. posted a third-quarter loss Tuesday, as higher provisions for loan losses reversed its year-ago profit.

For the three months ending Sept. 30, the company lost $6.5 million, or 28 cents per share. That compared to income of $4.1 million, or 17 cents per share the same time a year ago.

The performance was generally in line with Wall Street expectations. Analysts polled by Thomson Reuters forecast a loss of 29 cents per share.

Sun Bancorp said net charge-offs -- loans written off as not being repaid -- were $14.5 million in the third quarter, or 0.53 percent of average loans outstanding, compared to $1.1 million, 0.04 percent of loans outstanding last year.

The company recorded a $16.2 million provision for loan losses in the quarter, compared to $3.7 million the same time last year.

Sun Bancorp also said it recorded a pretax impairment charge during the quarter of $1.9 million, or 5 cents per share, due to deterioration of underlying collateral on a pooled trust preferred security. It also recorded a write-down of $800,000, or 2 cents per share, on the value of a commercial warehouse.

The company noted that its net interest income was $26.5 million for the quarter, up from $25 million last year.

Total assets were $3.55 billion at the end of the quarter, compared to $3.43 billion last year.

Shares of the New Jersey-based bank dipped 3 cents to $4.35 in afternoon trading.

Buzz up!