Sun Bancorp in Mount Laurel, N.J. reported a quarterly loss as it continues to shrink its balance sheet.
The $2.8 billion-asset company announced in July that it would cut 40% of its work force and exit several businesses, including retail mortgages.
"During the third quarter, we successfully executed on all facets of our restructuring plans, and are now witnessing the initial impact," Thomas O'Brien, Sun's president and chief executive, said in a press release Thursday.
Sun reported a net loss of $825,000 in the third quarter, compared a $4.9 million loss a year ago. The loss per share was 5 cents, beating the average estimate of analysts polled by Bloomberg by a penny.
A steep drop in operating costs reflect the recent job cuts. Noninterest expenses fell 27%, to $24.1 million.
Net interest income fell 18%, to $18.9 million. Loans shrunk 22%, to $1.6 billion. The net interest margin was 2.87%, or 23 basis points lower than last year.
Fee-based income fell 19%, to $4.7 million, mainly because of lower mortgage banking revenue.