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

Suffolk Bancorp Announces $51 Million Loan Sale And $25 Million Capital Raise

Suffolk Bancorp (the “Company”) (NASDAQ - SUBK), parent company of Suffolk County National Bank (the “Bank”), today announced the sale of a portfolio of non-performing and classified loans with a book value of $51 million for aggregate proceeds of $31 million and the concurrent completion of a private placement of common stock for aggregate proceeds of $25 million. The two transactions together are expected to boost the Company’s capital base, resolve legacy credit issues at the Bank, and strengthen the overall financial position of the Company and the Bank.

“We are excited to complete these strategic transactions today,” commented Howard Bluver, President and Chief Executive Officer of the Company. “With the completion of the loan sale and capital raise, we have accomplished several key priorities set by our new management team, including revitalizing our balance sheet and moving beyond our legacy credit issues.”

Following the completion of the loan sale, the Bank’s total non-performing loans now stand at $14 million, or 1.8% of total loans, down from $81 million and 8.3%, respectively, at the end of 2011. The Company will recognize a one-time, non-recurring loss of $12 million in the third quarter associated with the disposition of the loans.

Remarking on this improvement, Bluver said, “The loan sale positively impacts our remaining criticized and classified loan book. With a new and highly experienced workout team in place and improved underwriting, loan review, and early warning systems implemented over the past year, we expect to see a continued reduction in criticized and classified assets in future periods. Further, we believe the non-performing loans we chose not to put in the loan sale will be positively resolved through a combination of payoffs in full, upgrades to performing status as workout agreements are met, and the sale of collateral with strong value. We believe that this aggressive disposition of our legacy credit issues puts an end to what otherwise would likely have been a multiyear workout process largely dependent on the delayed foreclosure process in Suffolk County.”

1 of 4

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
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 +1.21 0.06%
NASDAQ 4,828.3250 +15.6170 0.32%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs