- Sun Bancorp (NASDAQ:SNBC) agrees to the sale of its Hammonton branch assets and related deposits/loans to Cape Bank for a deposit premium of 4%, resulting in an anticipated net gain of about $500K.
- In addition, the bank is consolidating nine branches across seven counties, and expects an overall branch count of 31 by year-end.
- This sale and consolidation should result in annual noninterest expense reductions of about $4.6M. There will be a one-time $4.6M charge though, but the bank notes this is offset by a $9.2M gain on sale from a previously-announced sale on March 6 of seven Cape May County branches.
- When these deals all close, the bank will see a 39% reduction in locations, annualized expense savings of about $10M, and net gains on sales of roughly $6.5M.
- Source: Press Release
- Previously: Sun Bancorp to focus on core after sale of branches (March 9)