Losses at Sun Bancorp Inc. in Vineland, N.J., swelled in the third quarter, to $75.3 million, from $6.5 million a year earlier.
The $3.6 billion-asset company said Thursday that the results reflected continued weak economic conditions, especially in the commercial real estate and development sectors.
Nonperforming assets rose 64.4%, to $208.8 million, or 7.7% of total assets.
The company charged off $41.6 million and took a $42.4 million provision for loan losses, a 203.5% increase from the second quarter. It said the higher provision resulted from the migration of loans to higher-risk categories and bigger writedowns on commercial real estate collateral deficiencies.
Sun also wrote down $50 million of deferred tax assets, a further hit to its third-quarter results.
A bright spot was the completion of a $106.7 million capital-raising effort, spearheaded by the private-equity firm W.L. Ross & Co.
That boosted Sun's tangible common equity ratio by 70 basis points, to 7.13%, as of Sept. 30.