Sun Bancorp, Inc. the holding company for Sun National Bank, reported today that the bank has completed its sale of six offices along with related deposits and certain loans in Cape May County as well as one office in Atlantic County to Sturdy Savings Bank. The bank’s Somers Point, Tuckahoe, Cape May Court House, Cape May, Rio Grande, Wildwood Crest and North Wildwood branches, with approximately $153 million in combined total deposits and approximately $4 million in fixed assets, were sold for a premium on deposits of 8.765 percent, or approximately $13.5 million. In addition, approximately $64 million in combined local branch loans were sold at book value. The net gain on sale, after adjusting for the book value of fixed assets and certain transaction costs, will be approximately $9.2 million. The transaction, first announced in July 2014, will allow the company to prospectively realize an annualized reduction in its operating expense base of approximately $3 million.
“This financially-attractive transaction represents an efficient use of the bank’s current excess liquidity and will help further rationalize our physical delivery channels and expense base,” said President & CEO Thomas M. O’Brien. “We can begin to focus our efforts in core markets. Additionally, our Cape May County customers will be well-served by the locally-based team at Sturdy Savings Bank.”Related Articles: