Sun Bancorp Inc. in Vineland, N.J., said Monday that its second-quarter earnings fell 53% from a year earlier, to $2.3 million, primarily because its loan-loss provision rose nearly sixfold, to $6.5 million.
The $3.4 billion-asset Sun said the higher provision was mainly attributable to two commercial loans, one of which is still performing.
Nonperforming assets more than doubled from a year earlier and increased 11.1% from the previous quarter, to $34.1 million, or 1.29% of total loans as of June 30.
Sun's net interest margin rose 11 basis points from a year earlier but decreased 5 basis points from the first quarter, to 3.3%.
Shares of Sun Bancorp slipped 1.1% Monday, to $9.43