Sun Bancorp, Inc. Reports Earnings for the First Quarter18 April 2006
Sun Bancorp, Inc. (Nasdaq: SNBC) today reported net income of $4.2 million, or $.21 per share, for the quarter ended March 31, 2006, compared to net income of $5.1 million, or $.26 per share, for the first quarter 2005.
"The reported first quarter earnings per share is in line with our earnings expectation announcement of March 20, 2006," said Thomas A. Bracken, president and chief executive officer of Sun Bancorp, Inc. and its wholly owned subsidiary, Sun National Bank. "While the overall interest rate environment and the intense competition for both loans and deposits present challenges to our short-term operating results, we continue to be focused on our sound fundamentals and remain optimistic for our longer-term outlook.
"We are experiencing very positive momentum in our new Advantage Bank markets of Somerset and Hunterdon counties, and organic loan growth throughout our entire market for the quarter, excluding the Advantage Bank acquisition and significant prepayments, was approximately 3.2%," Bracken added. "More importantly, our pipeline and credit quality remain strong. Our retail banking strategy that was implemented in late 2005 is progressing with an increasing growth in new customers. In addition, through our new mortgage subsidiary, Sun Home Loans, Inc., which went operational in early March, we will provide consumers with a full range of mortgage loans and services. As discussed in the March 20 press release, while net interest income and non-interest income are below original planned expectations for the quarter, we expect continued loan growth and fee income momentum while we continue to focus on expense efficiencies throughout the entire organization."
The following is an overview of the key financial highlights for the quarter:
-- Total assets of $3.284 billion at March 31, 2006, compared to $3.108
billion at December 31, 2005, and $3.051 billion at March 31, 2005. On
January 19, 2006, the Company acquired assets of approximately $164
million and recorded purchase adjustments of approximately $21 million
from the acquisition of Advantage Bank.
-- Total loans before allowance for loan losses were $2.215 billion at
March 31, 2006, an increase of $307.0 million, or 16.1%, over total
loans at March 31, 2005, and an increase of $164.4 million, or 8.0%,
over December 31, 2005. Linked quarter loan growth normalized for
Advantage Bank and significant prepayments approximated 3.2%.
-- Credit quality trends remain stable. Total non-performing assets of
$13.0 million at March 31, 2006, or .59% of total loans and real
estate owned, increased $1.4 million from $11.6 million at December
31, 2005, or .56% of total loans and real estate owned. This linked
quarter increase was due to the Advantage Bank acquisition. Total non-
performing assets decreased $2.2 million, or 14.4%, over the prior
year comparable quarter.
-- Total deposits were $2.603 billion at March 31, 2006, an increase of
$218.1 million, or 9.1%, over total deposits at March 31, 2005, and an
increase of $131.4 million, or 5.3%, over December 31, 2005. On a
linked quarter basis, deposit growth normalized for Advantage Bank was
essentially flat.
-- Net interest income (tax-equivalent basis) for the first quarter of
$24.6 million decreased $257,000 over the linked quarter. Net interest
margin for the quarter of 3.40% decreased over the linked quarter
margin of 3.54%. While average earning assets increased approximately
$88 million, or 3.1% on a linked quarter basis, and the yield on
earning assets improved 20 basis points quarter-to-quarter, the
overall cost of interest-bearing liabilities increased
37 basis points. The resultant compression in interest rate spread of
17 basis points reflects the impact of the continued market
competitiveness for both loans and deposits and the flat yield curve.
Additionally, as noted in the March 20, 2006 press release, as a
result of this rate environment, the Company reduced its planned
deposit growth and asset leverage strategy for the quarter.
-- Total operating non-interest income for the quarter of $4.4 million
increased 8.1% over the comparable prior year period and is
essentially flat on a linked quarter basis.
-- Total operating non-interest expenses for the quarter of $22.3 million
increased $546,000, or 2.5%, over the linked quarter. The increase
over the linked quarter represents primarily the incremental expenses
of Advantage Bank.
"We are not pleased with our results compared to first quarter 2005 and the linked quarter, but the rate environment and the marketplace can't be ignored. There are times when prudent business strategy is dictated by restraint and patience. This is one of those times. During this cycle we are committed to remaining competitive, adhering to sound fundamentals, maintaining our credit standards and managing expenses. Our goal is to build sustainable long-term value for our shareholders. We are controlling our growth in a measured way as we continue to build out our franchise in one of the most demographically attractive banking markets in the country," said Bracken.
Sun Bancorp, Inc. will host a conference call with analysts and investment professionals on Tuesday, April 18, 2006, at 11:30 a.m. ET. Interested parties may listen to the live call by dialing 1-800-391-2548 and giving the verbal passcode: vi352014. Listeners may also access the live Web cast through the Sun Bancorp Web site at http://www.sunnb.com. An Internet-based replay will be available at the Web site for 48 hours following the call.
Sun Bancorp, Inc. is a multi-state bank holding company headquartered in Vineland, New Jersey. Its primary subsidiary is Sun National Bank, serving customers through 80 branch locations in Southern and Central New Jersey, Philadelphia, PA, and New Castle County, DE. The bank is an Equal Housing Lender and its deposits are insured up to the legal maximum by the Federal Deposit Insurance Corporation (FDIC). For more information about Sun National Bank and Sun Bancorp, Inc., visit http://www.sunnb.com.
The foregoing material contains forward-looking statements concerning the financial condition, results of operations and business of the Company. We caution that such statements are subject to a number of uncertainties and actual results could differ materially, and, therefore, readers should not place undue reliance 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 forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.
SUN BANCORP, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS (unaudited)
(Dollars in thousands, except per share data)
Three months ended
March 31, December 31,
2006 2005 2005
Profitability for the period:
Net interest income $24,421 $24,228 $24,692
Provision for loan losses 625 525 520
Non-interest income 4,396 4,185 4,399
Non-interest expense 22,274 20,434 21,728
Income before income taxes 5,918 7,454 6,843
Net income $4,172 $5,113 $4,584
Return on average assets (1) 0.52% 0.67% 0.59%
Return on average equity (1) 5.35% 7.27% 6.25%
Return on average tangible
equity (1), (2) 10.38% 13.94% 11.60%
Net interest margin (1) 3.40% 3.55% 3.54%
Efficiency ratio 77.30% 71.92% 74.69%
Per share data:
Earnings per common share (3):
Basic $0.22 $0.28 $0.25
Diluted $0.21 $0.26 $0.24
Average equity to average assets 9.67% 9.20% 9.46%
March 31, December 31,
At period-end: 2006 2005 2005
Assets $3,284,173 $3,050,741 $3,107,889
Deposits 2,603,040 2,384,948 2,471,648
Loans, net 2,190,182 1,885,347 2,027,753
Investments 656,456 831,920 729,066
Borrowings 231,618 295,774 243,567
Shareholders' Equity 319,401 281,687 295,653
Credit quality and capital ratios:
ALLL to total loans 1.10% 1.17% 1.10%
Non-performing assets to total
loans and real estate owned 0.59% 0.80% 0.56%
Total allowance for loan losses
to non-performing loans 214.49% 161.74% 223.02%
Total Capital (to Risk-Weighted
Assets) (4):
Sun Bancorp, Inc. 11.68% 10.95% 11.11%
Sun National Bank 10.53% 10.41% 10.50%
Tier I Capital (to Risk-Weighted
Assets) (4):
Sun Bancorp, Inc. 10.69% 9.95% 10.14%
Sun National Bank 9.54% 9.40% 9.53%
Leverage Ratio (4):
Sun Bancorp, Inc. 8.91% 7.70% 8.20%
Sun National Bank 7.95% 7.27% 7.70%
Book value (3) $16.68 $15.54 $16.27
Tangible book value (3) $8.40 $7.93 $8.85
(1) Three months ended amounts are annualized.
(2) Return on average tangible equity 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) Data is adjusted for a 5% stock dividend declared in March 2005.
(4) March 31, 2006 Capital ratios are estimated, subject to regulatory
filings.
SUN BANCORP, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands, except par value)
March 31, December 31,
2006 2005
ASSETS
Cash and due from banks $75,539 $74,387
Interest bearing bank balances 9,185 2,707
Federal funds sold 54,946 8,368
Cash and cash equivalents 139,670 85,462
Investment securities available
for sale (amortized cost -
$616,203; 3/06, $688,073; 12/05) 605,704 676,630
Investment securities held to
maturity 30,318 32,445
Loans receivable (net of allowance
for loan losses - $24,448; 3/06,
$22,463; 12/05) 2,190,182 2,027,753
Restricted equity investments 20,434 19,991
Bank properties and equipment, net 43,643 42,110
Real estate owned, net 1,600 1,449
Accrued interest receivable 16,215 15,148
Goodwill 126,358 104,891
Intangible assets, net 32,148 29,939
Deferred taxes, net 5,722 6,761
Bank Owned Life Insurance 56,070 55,627
Other assets 16,109 9,683
TOTAL ASSETS $3,284,173 $3,107,889
LIABILITIES
Deposits $2,603,040 $2,471,648
Advances from the Federal Home
Loan Bank 119,382 124,546
Securities sold under agreements
to repurchase - FHLB 70,000 60,000
Securities sold under agreements
to repurchase - customers 42,236 59,021
Obligations under capital lease 5,367 5,400
Debentures 108,250 77,322
Other liabilities 16,497 14,299
Total liabilities 2,964,772 2,812,236
SHAREHOLDERS' EQUITY
Preferred stock, $1 par value,
1,000,000 shares authorized, none
issued - -
Common stock, $1 par value, shares
authorized, 25,000,000 issued,
19,148,670; 3/06,
18,168,530; 12/05 19,149 18,169
Additional paid in capital 282,458 264,152
Retained earnings 24,930 20,757
Accumulated other comprehensive loss (7,136) (7,425)
Total shareholders' equity 319,401 295,653
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $3,284,173 $3,107,889
SUN BANCORP, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
For the Three Months
Ended March 31,
2006 2005
INTEREST INCOME:
Interest and fees on loans $36,595 $29,076
Interest on taxable investment
securities 5,577 6,128
Interest on non-taxable investment
securities 256 468
Dividends on restricted equity
investments 314 188
Interest on federal funds sold 280 40
Total interest income 43,022 35,900
INTEREST EXPENSE:
Interest on deposits 13,647 8,124
Interest on borrowed funds 3,044 2,422
Interest on debentures 1,910 1,126
Total interest expense 18,601 11,672
Net interest income 24,421 24,228
Provision for loan losses 625 525
Net interest income after provision
for loan losses 23,796 23,703
NON-INTEREST INCOME:
Service charges on deposit accounts 2,124 2,238
Other service charges 78 45
Gain on sale of fixed assets - 100
Gain on sale of loans 284 341
Loss on sale of investment securities (20) -
Other 1,930 1,461
Total non-interest income 4,396 4,185
NON-INTEREST EXPENSE:
Salaries and employee benefits 11,477 10,244
Occupancy expense 2,944 3,079
Equipment expense 1,927 1,978
Data processing expense 1,059 931
Amortization of intangible assets 1,188 1,147
Other 3,679 3,055
Total non-interest expenses 22,274 20,434
INCOME BEFORE INCOME TAXES 5,918 7,454
INCOME TAXES 1,746 2,341
NET INCOME $4,172 $5,113
Basic earnings per share (1) $0.22 $0.28
Diluted earnings per share (1) $0.21 $0.26
(1) Data is adjusted for a 5% stock dividend declared in March 2005.
SUN BANCORP, INC. AND SUBSIDIARIES
HISTORICAL TRENDS IN QUARTERLY FINANCIAL DATA (unaudited)
(Dollars in thousands, except per share data)
2006 2005 2005
Q1 Q4 Q3
Balance Sheet at quarter end:
Loans:
Commercial and industrial $1,846,580 $1,732,202 $1,674,263
Home equity 183,363 155,561 137,693
Second mortgage 72,344 53,881 45,238
Residential real estate 28,846 30,162 28,785
Installment 83,497 78,410 75,796
Total loans 2,214,630 2,050,216 1,961,775
Allowance for loan losses (24,448) (22,463) (22,310)
Net Loans 2,190,182 2,027,753 1,939,465
Goodwill 126,358 104,891 104,891
Intangible assets, net 32,148 29,939 31,057
Total Assets 3,284,173 3,107,889 3,105,310
Total Deposits 2,603,040 2,471,648 2,507,565
Advances from the Federal Home
Loan Bank 119,382 124,546 129,656
Federal funds purchased - - -
Securities repurchase agreements
- FHLB 70,000 60,000 -
Securities repurchase agreements
- customers 42,236 59,021 86,315
Total shareholders' equity 319,401 295,653 291,560
Quarterly average balance sheet:
Loans:
Commercial and industrial $1,811,832 $1,680,757 $1,672,481
Home equity 170,523 144,681 134,382
Second mortgage 66,426 46,780 46,350
Residential real estate 29,472 29,359 27,634
Installment 82,450 77,562 74,220
Total loans 2,160,703 1,979,139 1,955,067
Securities and other earning
assets 731,744 825,608 899,276
Total earning assets 2,892,447 2,804,747 2,854,343
Total assets 3,225,147 3,102,434 3,159,051
Non-interest-bearing demand
deposits 496,249 514,783 516,778
Total deposits 2,533,158 2,510,918 2,556,947
Total interest-bearing
liabilities 2,399,663 2,281,743 2,334,909
Total shareholders' equity 311,755 293,575 292,369
Capital and credit quality
measures:
Total Capital (to Risk-Weighted
Assets) (1):
Sun Bancorp, Inc. 11.68% 11.11% 11.14%
Sun National Bank 10.53% 10.50% 10.55%
Tier I Capital (to Risk-Weighted
Assets) (1):
Sun Bancorp, Inc. 10.69% 10.14% 10.15%
Sun National Bank 9.54% 9.53% 9.57%
Leverage Ratio (1):
Sun Bancorp, Inc. 8.91% 8.20% 7.84%
Sun National Bank 7.95% 7.70% 7.41%
Average equity to average assets 9.67% 9.46% 9.25%
ALLL to total loans 1.10% 1.10% 1.14%
Non-performing assets to total
loans and real estate owned 0.59% 0.56% 0.71%
Total allowance for loan losses
to non-performing loans 214.49% 223.02% 179.60%
Other data:
Net recoveries (charge-offs) $101 $(368) $(694)
Non-performing assets:
Non-accrual loans $11,049 $9,957 $11,848
Loans past due 90 days and
accruing 349 168 574
Real estate owned, net 1,600 1,449 1,437
Total non-performing assets $12,998 $11,574 $13,859
2005 2005
Q2 Q1
Balance Sheet at quarter end:
Loans:
Commercial and industrial $1,657,521 $1,631,717
Home equity 134,057 128,045
Second mortgage 46,955 48,643
Residential real estate 26,500 27,630
Installment 73,500 71,549
Total loans 1,938,533 1,907,584
Allowance for loan losses (22,505) (22,237)
Net Loans 1,916,028 1,885,347
Goodwill 104,891 104,606
Intangible assets, net 32,174 33,291
Total Assets 3,140,962 3,050,741
Total Deposits 2,541,214 2,384,948
Advances from the Federal Home Loan
Bank 134,713 169,717
Federal funds purchased - 2,000
Securities repurchase agreements -
FHLB - 50,000
Securities repurchase agreements -
customers 77,488 74,057
Total shareholders' equity 287,632 281,687
Quarterly average balance sheet:
Loans:
Commercial and industrial $1,649,491 $1,617,334
Home equity 130,754 126,069
Second mortgage 47,846 49,210
Residential real estate 26,728 26,241
Installment 71,477 67,606
Total loans 1,926,296 1,886,460
Securities and other earning assets 863,176 868,441
Total earning assets 2,789,472 2,754,901
Total assets 3,106,121 3,058,645
Non-interest-bearing demand deposits 487,508 487,915
Total deposits 2,461,027 2,387,990
Total interest-bearing liabilities 2,318,221 2,275,907
Total shareholders' equity 284,654 281,507
Capital and credit quality measures:
Total Capital (to Risk-Weighted
Assets) (1):
Sun Bancorp, Inc. 10.89% 10.95%
Sun National Bank 10.33% 10.41%
Tier I Capital (to Risk-Weighted
Assets) (1):
Sun Bancorp, Inc. 9.90% 9.95%
Sun National Bank 9.34% 9.40%
Leverage Ratio (1):
Sun Bancorp, Inc. 7.77% 7.70%
Sun National Bank 7.34% 7.27%
Average equity to average assets 9.16% 9.20%
ALLL to total loans 1.16% 1.17%
Non-performing assets to total
loans and real estate owned 0.73% 0.80%
Total allowance for loan losses to
non-performing loans 176.32% 161.74%
Other data:
Net recoveries (charge-offs) $(497) $(325)
Non-performing assets:
Non-accrual loans $12,662 $13,461
Loans past due 90 days and accruing 102 287
Real estate owned, net 1,437 1,437
Total non-performing assets $14,201 $15,185
(1) March 31, 2006 Capital ratios are estimated, subject to regulatory
filings.
SUN BANCORP, INC. AND SUBSIDIARIES
HISTORICAL TRENDS IN QUARTERLY FINANCIAL DATA (unaudited)
(Dollars in thousands, except per share data)
2006 2005 2005
Q1 Q4 Q3
Profitability for the quarter:
Tax-equivalent interest income $43,159 $40,458 $39,483
Interest expense 18,601 15,643 14,840
Tax-equivalent net interest
income 24,558 24,815 24,643
Tax-equivalent adjustment 137 123 127
Provision for loan losses 625 520 500
Non-interest income excluding
security gains, branch sales
and fixed asset sales 4,416 4,493 4,612
Security (loss) gain (20) (36) -
(Loss) gain on sale of fixed assets - (58) -
Non-interest expense
excluding amortization of
intangible assets 21,086 20,612 20,062
Amortization of intangible assets 1,188 1,116 1,117
Income before income taxes 5,918 6,843 7,449
Income tax expense 1,746 2,259 2,455
Net Income $4,172 $4,584 $4,994
Financial ratios:
Return on average assets (1) 0.52% 0.59% 0.63%
Return on average equity (1) 5.35% 6.25% 6.83%
Return on average tangible equity
(1), (2) 10.38% 11.60% 12.83%
Net interest margin (1) 3.40% 3.54% 3.45%
Efficiency ratio 77.30% 74.69% 72.71%
Per share data:
Earnings per common share (3), (4):
Basic $0.22 $0.25 $0.28
Diluted $0.21 $0.24 $0.26
Book value (3) $16.68 $16.27 $16.06
Tangible book value (3) $8.40 $8.85 $8.57
Average basic shares 18,841,872 18,109,361 18,141,052
Average fully diluted shares 20,011,724 19,235,997 19,341,580
Operating non-interest income
breakdown:
Service charges on deposit accounts 2,124 2,174 2,245
Other service charges 78 76 88
Gain on sale of loans 284 241 318
Other income 1,930 2,002 1,961
Total operating non-interest
income 4,416 4,493 4,612
Non-operating income items:
(Loss) gain on sale of investment
securities (20) (36) -
Gain on sale of fixed assets
relating to branch disposals - - -
(Loss) gain on sale of fixed assets - (58) -
Non-operating income before tax
effect (20) (94) -
Total non-interest income 4,396 4,399 4,612
Operating non-interest expense
breakdown:
Salaries and employee benefits 11,477 10,823 10,701
Occupancy expense 2,944 2,895 2,758
Equipment expense 1,927 1,942 1,959
Data processing expense 1,059 1,063 1,064
Amortization of intangible assets 1,188 1,116 1,117
Other expenses 3,679 3,889 3,580
Total operating non-interest
expense 22,274 21,728 21,179
Non-operating expense items:
Lease buy-out charges related to
branch disposals - - -
Write-off of fixed assets related
to branch disposals - - -
Severance expense relating to
branch disposals - - -
Gain on sale of branch real estate - - -
Branch rationalization costs - - -
Litigation Reserve - - -
Total non-operating expense items: - - -
Total non-interest expense 22,274 21,728 21,179
2005 2005
Q2 Q1
Profitability for the quarter:
Tax-equivalent interest income $37,854 $36,140
Interest expense 13,559 11,672
Tax-equivalent net interest income 24,295 24,468
Tax-equivalent adjustment 216 240
Provision for loan losses 765 525
Non-interest income excluding
security gains, branch sales
and fixed asset sales 4,283 4,085
Security (loss) gain 809 -
(Loss) gain on sale of fixed assets 3 100
Non-interest expense
excluding amortization of
intangible assets 20,205 19,287
Amortization of intangible assets 1,117 1,147
Income before income taxes 7,087 7,454
Income tax expense 2,257 2,341
Net Income $4,830 $5,113
Financial ratios:
Return on average assets (1) 0.62% 0.67%
Return on average equity (1) 6.79% 7.27%
Return on average tangible equity
(1), (2) 13.15% 13.94%
Net interest margin (1) 3.48% 3.55%
Efficiency ratio 73.08% 71.92%
Per share data:
Earnings per common share (3), (4):
Basic $0.27 $0.28
Diluted $0.25 $0.26
Book value (3) $15.86 $15.54
Tangible book value (3) $8.30 $7.93
Average basic shares 18,131,121 18,010,434
Average fully diluted shares 19,306,440 19,371,080
Operating non-interest income
breakdown:
Service charges on deposit accounts 2,300 2,238
Other service charges 70 45
Gain on sale of loans 89 341
Other income 1,824 1,461
Total operating non-interest income 4,283 4,085
Non-operating income items:
(Loss) gain on sale of investment
securities 809 -
Gain on sale of fixed
assets relating to branch disposals - 100
(Loss) gain on sale of fixed assets 3 -
Non-operating income before tax effect 812 100
Total non-interest income 5,095 4,185
Operating non-interest expense breakdown:
Salaries and employee benefits 10,859 10,244
Occupancy expense 2,648 3,079
Equipment expense 1,883 1,978
Data processing expense 1,061 931
Amortization of intangible assets 1,117 1,147
Other expenses 3,754 3,055
Total operating non-interest expense 21,322 20,434
Non-operating expense items:
Lease buy-out charges related to
branch disposals - -
Write-off of fixed assets related
to branch disposals - -
Severance expense relating to
branch disposals - -
Gain on sale of branch real estate - -
Branch rationalization costs - -
Litigation Reserve - -
Total non-operating expense items: - -
Total non-interest expense 21,322 20,434
(1) Annualized.
(2) Return on average tangible equity 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) Data is adjusted for a 5% stock dividend declared in March 2005.
(4) Earnings per share is computed by dividing net income by the weighted
average number of shares of common stock outstanding.
SUN BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEET
(Dollars in thousands)
Three months ended March 31,
2006
Average Average
Balance Interest Yield/Cost
Interest-earning assets:
Loans receivable (1), (2)
Commercial and industrial $1,811,832 $30,594 6.75 %
Home equity 170,523 2,743 6.43
Second mortgage 66,426 998 6.01
Residential real estate 29,472 623 8.45
Installment 82,450 1,637 7.94
Total loans receivable 2,160,703 36,595 6.77
Investment securities (3) 693,637 6,139 3.54
Interest-bearing deposit with banks 12,372 145 4.69
Federal funds sold 25,735 280 4.35
Total interest-earning assets 2,892,447 43,159 5.97
Cash and due from banks 80,098
Bank properties and equipment 43,308
Goodwill and intangibles 151,005
Other assets 58,289
Non-interest-earning assets 332,700
Total assets $3,225,147
Interest-bearing liabilities:
Interest-bearing deposit accounts:
Interest-bearing demand deposit $882,548 5,344 2.42 %
Savings deposits 372,757 1,366 1.47
Time deposits 781,604 6,937 3.55
Total interest-bearing
deposit accounts 2,036,909 13,647 2.68
Borrowed money
Repurchase agreements with customers 42,219 405 3.84
FHLB Advances 207,901 2,357 4.53
Federal funds purchased 4,483 53 4.73
Debentures 102,752 1,910 7.44
Obligations under capital lease 5,399 229 7.27
Total borrowings 362,754 4,954 5.46
Total interest-bearing liabilities 2,399,663 18,601 3.10
Non-interest-bearing demand deposits 496,249
Other liabilities 17,480
Total liabilities 2,913,392
Shareholders' equity 311,755
Total liabilities and
stockholders' equity $3,225,147
Net interest income $24,558
Interest rate spread (4) 2.87 %
Net interest margin (5) 3.40 %
Ratio of average interest-earning assets
to average interest-bearing liabilities 120.54 %
Three months ended March 31,
2005
Average Average
Balance Interest Yield/Cost
Interest-earning assets:
Loans receivable (1), (2)
Commercial and industrial $1,617,334 $25,135 6.22 %
Home equity 126,069 1,499 4.76
Second mortgage 49,210 756 6.15
Residential real estate 26,241 475 7.24
Installment 67,606 1,211 7.17
Total loans receivable 1,886,460 29,076 6.17
Investment securities (3) 855,347 6,993 3.27
Interest-bearing deposit with banks 6,428 31 1.93
Federal funds sold 6,666 40 2.40
Total interest-earning assets 2,754,901 36,140 5.25
Cash and due from banks 78,500
Bank properties and equipment 36,792
Goodwill and intangibles 134,789
Other assets 53,663
Non-interest-earning assets 303,744
Total assets $3,058,645
Interest-bearing liabilities:
Interest-bearing deposit accounts:
Interest-bearing demand deposit $804,275 2,708 1.35 %
Savings deposits 442,588 1,121 1.01
Time deposits 653,212 4,295 2.63
Total interest-bearing
deposit accounts 1,900,075 8,124 1.71
Borrowed money
Repurchase agreements with customers 69,793 320 1.83
FHLB Advances 219,130 2,034 3.71
Federal funds purchased 9,587 68 2.84
Debentures 77,322 1,126 5.82
Obligations under capital lease - - -
Total borrowings 375,832 3,548 3.78
Total interest-bearing liabilities 2,275,907 11,672 2.05
Non-interest-bearing demand deposits 487,915
Other liabilities 13,316
Total liabilities 2,777,138
Shareholders' equity 281,507
Total liabilities and
stockholders' equity $3,058,645
Net interest income $24,468
Interest rate spread (4) 3.20 %
Net interest margin (5) 3.55 %
Ratio of average interest-earning assets
to average interest-bearing liabilities 121.05 %
(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 earned on non-taxable investment securities is shown on a
tax equivalent basis assuming a 35% marginal federal tax rate for all
periods.
(4) Interest rate spread represents the difference between the average
yield on interest-earning assets and the average cost of interest-
bearing liabilities.
(5) Net interest margin represents net interest income as a percentage of
average interest-earning assets.
Sun Bancorp, Inc. - 226 Landis Avenue - Vineland, NJ - 08360
(856) 691-7700 - http://www.sunnb.com - Member FDIC - Equal Housing Lender
Source: prnewswire
All trademarks and copyrighted information contained herein are the property of their respective owners.
Related Articles
|
