Tags: Wilbur Ross | Sun Bancorp | Chief Executive | Geisel

Wilbur Ross-Backed Sun Bancorp Ousts CEO Geisel as Losses Mount

Tuesday, 26 Nov 2013 08:32 AM

Sun Bancorp Inc., the New Jersey lender backed by billionaire investor Wilbur Ross, ousted Thomas X. Geisel as president and chief executive officer as the company struggled to stanch losses.

Geisel leaves his post and board positions as of Dec. 2, and Sun Bancorp hired search firm Spencer Stuart to find a replacement, according to a statement yesterday from the Vineland-based company. Chairman Sidney R. Brown will serve as interim CEO, the bank said.

“Having new leadership will allow us to focus and execute on the core objectives of regulatory excellence, growth and sustained shareholder returns,” Ross, a member of the board, said in the statement.

Sun Bancorp hasn’t posted an annual profit since 2008, according to data compiled by Bloomberg. Ross, who specializes in distressed financial companies, oversees a stake of about 25 percent, the data show. The stock has lost three-quarters of its value since the end of 2007, including a 5.4 percent drop this year to $3.35.

The lender runs Sun National Bank, holding $3.24 billion in assets and $2.75 billion in deposits with more than 50 outlets in New Jersey, according to the bank’s statements. The company reported a loss of $4.9 million, or 6 cents a share, for the quarter ended Sept. 30, citing a decline in mortgage banking income and a slow economy.

“The company has struggled to materially improve overall profitability and from that regard, it’s not surprising to see a change in management,” according to Matt Breese, an analyst at Sterne Agee & Leach Inc. “In addition to credit costs, expenses have remained elevated.” His firm rates Sun Bancorp’s shares underperform.

Mike Dinneen, a company spokesman, declined to comment beyond the statement.


© Copyright 2017 Bloomberg News. All rights reserved.

 
1Like our page
2Share
Companies
Sun Bancorp Inc., the New Jersey lender backed by billionaire investor Wilbur Ross, ousted Thomas X. Geisel as president and chief executive officer as the company struggled to stanch losses.
Wilbur Ross,Sun Bancorp,Chief Executive,Geisel
280
2013-32-26
Tuesday, 26 Nov 2013 08:32 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved