Sun Bancorp in Mount Laurel, N.J., plans to raise approximately $20 million to fund its recent restructuring.

The $2.9 billion-asset bank has agreed to sell approximately 1.1 million shares of common stock to institutional and private equity investors.

The bank intends to use the proceeds to cover expenses from a reorganization last month that involved cutting 40% of its workforce and closing its retail mortgage business. It will also use the funds to strengthen its capital ratios.

"While the approximate one-time cost of this restructuring was $20 million, the company and its main subsidiary Sun National Bank have remain well capitalized," said Thomas O'Brien, the bank's chief executive, in a news release Thursday.

"The combination of the capital raise and the previously announced balance sheet reductions will allow the company to execute its new business plan from an even stronger capital position," O'Brien added.

Sun Bancorp has undergone several leadership changes in the past year. O'Brien joined the bank in April, replacing former CEO Thomas Geisel, who was ousted in December. The bank also hired several top executives last month, including a new chief lending officer and chief banking officer.

In July, Sun Bancorp reported a $24.2 million net loss for the second-quarter. The bulk of that loss was related to restructuring costs.

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