Sun Bancorp Inc. of Vineland, N.J., said Thursday that it would take a $4.1 million fourth-quarter provision for loan losses and charge off $3.5 million of loans.
Because of the provision, the $3.3 billion-asset Sun said Thursday afternoon, it expects to report fourth-quarter earnings of 19 cents to 20 cents a share. The average estimate of analysts had called for Sun to report earnings of 26 cents, according to Thomson Financial.
After the announcement, Sun's stock fell 6.3%, to $14.20 a share.
Sidney R. Brown, its vice chairman and interim president and chief executive officer, said in a press release that $1.1 million of the chargeoffs will cover a loan to a residential real estate developer, $800,000 will cover small-business loans, and $1.6 million will cover other commercial and noncommercial loans.
The chargeoffs do not indicate any negative trends in Sun's loan portfolios and do not reflect undue concentration in any loan category, he said.
Thomas X. Geisel is expected to succeed Mr. Brown as the president and CEO on Monday. Mr. Brown took on the interim titles in early February, after the board forced out Thomas A. Bracken, citing earnings disappointments.
