Sun Bancorp in Mount Laurel, N.J., swung to a profit thanks to branch closings and other expense reductions.
The $2.4 billion-asset parent of Sun National Bank is in the process of closing nearly 40% of its branches and sold seven of its offices in the Cape May area for a $9.2 million profit.
Net income for the quarter was $2.8 million. The company lost $1.9 million in the first quarter of 2014. It has been hard hit by New Jersey's weak economy, especially the decline of Atlantic City.
Net interest income shrank about 29%, to $15.2 million. The bank partly made up for it with a 164% increase in noninterest income, to $13.1 million, which came primarily from the branch sales. Several recurring revenue streams fell; for example, deposit service charges and fees declined 16%, to $2 million.
Layoffs helped lower noninterest expense by nearly 10%, to $25.2 million. Salaries and employee benefits shrank 23%, to $10.6 million.
Earnings per share under generally accepted accounting principles were $0.15, beating estimates by 14 cents thanks to the branch sales. On an adjusted basis, Sun reported a loss of 17 cents per share, 20 cents below the average estimate of a 3-cent profit made by analysts polled by Bloomberg.