Sun Bancorp (SNBC) in Mount Laurel, N.J., will eliminate nearly 40% of its work force as part of a major cost-cutting effort.

The $3 billion-asset company said in a press release Thursday that it will cut 242 jobs, sell and close branches and shut down its retail mortgage, health care and asset-based lending businesses. The initiative is expected to cut annual costs at Sun by nearly $17 million. Sun said it expects to record a $20 million charge in the second quarter to reflect the changes.

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