Sun Bancorp, Inc., the holding company for Sun National Bank , reported a net loss of $2.8 million, or a loss of $0.15 per diluted share, for the quarter ended December 31, 2014.
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This compares to a net loss of $825 thousand, or a loss of $0.05 per diluted share, for the quarter ended September 30, 2014 and a net loss of $8.2 million, or a loss of $0.47 per diluted share, for the quarter ended December 31, 2013.
"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," said president and CEO Thomas M. O'Brien.
"In addition, we took further actions to rationalize our expense base and delivery platform, which included the consolidation of three branches, addressing our short and long-term occupancy needs and expenses. The year 2014 was one of fundamental transition for the Company.
"In the course of a few short months, we put enormous legacy costs behind us, successfully exited several higher risk business lines, restructured our geographic footprint, raised new equity capital, improved credit quality metrics to very strong measures and built a strong management as well as new lending teams.
"This list of accomplishments represents a very focused and aggressive commitment of time and energy by both Management and the Board of Directors. We would not have achieved such success in our restructuring efforts to date without that support."
"We enter 2015 in much stronger financial condition and with the prospects for profitability finally in sight," continued O'Brien. "Absent the lease vacancy charge of $2.3 million and the owned real estate write-down of $0.8 million, the hint of some modest profitability is evident.
"Nonetheless, much remains to be done and our energies remain focused on concluding the difficult chapter of the past few years. While we will continue to create further efficiencies in 2015, the primary focus will now turn to liquidity deployment and achieving sustained profitability."
The Bank has been reducing the size of its balance sheet over the past few quarters as it focuses internally on excess credit risk reduction and capital ratio improvement. During the quarter, total assets fell $101.9 million due primarily to the reduction in the commercial loan portfolio from principal repayments.
Total assets were $2.72 billion at December 31, 2014, as compared to $2.82 billion at September 30, 2014 and $3.09 billion at December 31, 2013.
The Bank's liquidity level remains high as cash and cash equivalents rose to $549.4 million at December 31, 2014, as compared to $504.4 million at September 30, 2014 and $267.8 million at December 31, 2013.
The increase of $45.0 million in cash and cash equivalents in the fourth quarter of 2014 as compared to the prior quarter was due to commercial loan pay-downs, partially offset by a planned decrease in deposits. ■