Tuesday, February 9, 2016

Sun National to cut 200+ jobs

Will sell, close Shore-area branches

Sun National to cut 200+ jobs


Sun National Bank owner Sun Bancorp Inc., Mount Laurel, under pressure to please investors and government regulators and boost its sagging share price, plans to sell or shut a string of branches and lay off 38% of the company's 600-plus workers, new CEO Thomas O'Brien said in a statement. "The layoffs are part of an overall restructuring plan to bring the bank's revenue and expense model, and overall efficiency ratio, in line with our peers," spokesman Mike Dineen told me.  

Sun has long been run by members of the Bernie Brown family, who built a retail and real estate kingdom in Vineland and later developed the trucking firm National Freight and the transport logistics firm NFI of Cherry Hill. The bank also counts 76-year-old buyout specialist Wilbur L. Ross Jr., who controls nearly 25% of the stock, and Philip A. Norcross, a member of South Jersey's most prominent Democratic family, as directors.

The company plans to sell its Shore branches to Sturdy Savings Bank for a net gain of around $11 million, and shut central new Jersey branches in Branchburg, Holland, Hillsborough, and on Main St. in Freehold, NJ.  Sun plans instead to focus on faster-growing parts of the state, and may close more South Jersey branches by next year. Sun also plans to shut Sun Home Loans and its healthcare and asset-based lending units.  More here.

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PhillyDeals posts interviews, drafts and updates that Joseph N. DiStefano writes alongside his Sunday and Monday columns and ongoing articles about Philadelphia-area business.

DiStefano studied economics, history and a little engineering at Penn. He taught writing and research at St. Joe’s. He has written for the Inquirer since 1989, except when he left a few times to work at Bloomberg and elsewhere. He wrote the book Comcasted, and raised six kids with his wife, who is a saint.

Reach Joseph N. at JoeD@phillynews.com, 215.854.5194, @PhillyJoeD. Read his blog posts at http://www.philly.com/PhillyDeals and his Inquirer columns at http://www.philly.com/philly/columnists/joseph-distefano/. Bloomberg posts his items at NH BLG_PHILLYDEAL.

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