This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

10 Bank Acquisition Targets

Company Profile

Shares of Sun Bancorp (SNBC) of Vineland, N.J. closed at $5.08 Wednesday, returning 35% year-to-date.

The company received quite a boost and its shares soared in July when an investor group led by Wilbur Ross agreed to invest $100 million in the company, in a deal expected to be completed over the next several months after regulatory approval.

Income Statement

Sun Bancorp reported a second-quarter net loss of $81.2 million or $3.46 a share, mainly resulting from a non-cash goodwill impairment charge of $89.7 million. In comparison, Sun lost $762 thousand or 3 cents a share in the first quarter and reported a net loss to common shareholders of $8.8 million or 38 cents a share for the second quarter of 2009, when the company repaid TARP in full for $89.3 million.

Balance Sheet

Sun Bancorp had $3.5 billion in total assets as of June 30. The company estimated that the $100 million in new capital would boost its tier 1 leverage ratio to at least 11.75% and its total risk-based capital ratio to at least 14.00%.

Sun's nonperforming assets ratio was 3.62% as of June 30, rising from 2.08% a year earlier. The net charge-off ratio for the second quarter was a low 0.52%.

Stock Ratios

The shares were trading for just 0.5 times the company's June 30 tangible book value, as of Wednesday's close, according to SNL.

Analyst Ratings

Out of five analysts covering the share, four rated the company a buy, while one recommended holding the shares, according the Thomson Reuters.

Sun Bancorp shows that our approach of "letting the chips fall where they may," can highlight a company looking to acquire, rather than one considering a sale. Ross's investment shows that the company's low valuation made it attractive. With shares trading for just above half the company's liquidation value, the vote of confidence from Wilbur Ross and the prospect of expansion through cheap acquisitions, Sun Bancorp looks like an excellent growth opportunity for investors willing to go in for the long haul.

>>Sun Bancorp: How to Play It

5 of 11

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
BKMU $7.26 0.00%
GBNK $16.66 0.00%
SBCF $13.95 0.00%
AAPL $124.75 0.00%
FB $80.78 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs