NEW YORK (TheStreet) -- Shares of Sun Bancorp Inc. (SNBC) are gaining 5.87% to $4.33 in early trading on Thursday after the lender said it will eliminate its home loans and commercial specialty business units, and accelerate disposition of $96 million of so called, "problem loans," plus cut 38% of its workforce, as part of a restructuring plan.
The restructuring will result in a second quarter charge of about $20 million, the firm said.
Sun Bancorp's board has also declared a one-for-give reverse stock split effective August 11 for shareholders on record as of August 8.
Separately, TheStreet Ratings team rates SUN BANCORP INC/NJ as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate SUN BANCORP INC/NJ (SNBC) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows: