-
Sun Bancorp Inc. in Vineland, N.J., narrowed the size of its loss in the fourth quarter after moving more nonperforming assets off its books.
January 31
Shares of Sun Bancorp (SNBC) plunged early Wednesday after the Vineland, N.J., company reported a wider-than-expected loss in the first quarter due to ongoing weakness in its loan portfolio.
The $3.1 billion-asset company said that it lost $28.1 million, or 34 cents per share, in the first quarter, compared to a loss of $1.5 million, or two cents per share,
Asset quality weakened in the first quarter, however, due to a significant spike in troubled debt restructurings. Nonperforming loans ticked up 6.4%, or $6.9 million, from three months earlier, to $114.6 million and its percentage of nonperforming assets climbed 41 basis points, to 5.27%. As a result, the company more than quadrupled its loan-loss provision from the prior quarter, to $30.7 million.
Sun's stock was down nearly 8% early Wednesday, to $2.95.