Sun Bancorp Inc. in Vineland, N.J., warned Friday that it expects to report a third-quarter provision for loan losses of $16.2 million, a 133% increase from the second quarter.
The $3.5 billion-asset Sun also said it would charge off $14.5 million of loans, write down $800,000 on the value of a commercial warehouse it holds as real estate owned, and take an impairment charge of about $1.9 million on a pooled trust-preferred security.
Nonperforming assets are expected to increase to $94 million, or 2.65% of total assets, as of Sept. 30, from $74.1 million, or 2.08% of total assets, as of June 30, the company said.
Sun lost $8.8 million in the second quarter, when it reported a $6.95 million provision for loan losses and $2 million of chargeoffs.
It also took a $4.6 million impairment charge in that quarter on the same pooled trust-preferred security.