Sun Bancorp Inc. of Vineland, N.J. said Thursday that it will raise $100 million via private-equity funds affiliated with WL Ross & Co. LLC and shareholders of the bank's founding Brown family.
The $3.5 billion-asset bank holding company will use the proceeds to boost capital at its subsidiary, Sun National Bank, and to expand operations in New Jersey.
It was well capitalized with a total risk-based capital ratio of 10.9%, and Tier 1 risk-based capital of 9.69%, as of March 31, according to the Federal Deposit Insurance Corp.
Sun Bancorp said it signed a definitive agreement to sell its common stock and newly issued convertible preferred stock at $4 per share to WL Ross' affiliates and the bank's founding family shareholders.
WL Ross will own 24.9% of the company's outstanding common stock after the purchase and conversion is completed.
The firm's chief executive and chairman, Wilbur L. Ross, will then have a seat on the board of both the bank and parent company.
