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Sun Bancorp to receive USD100m equity investment

Sun Bancorp has signed definitive investment agreements with private equity funds affiliated with WL Ross, the bank’s founding Brown family shareholders and others to invest USD100m in shares of the company’s common stock.

The shares to be purchased by WL Ross will represent 24.9 per cent of the company’s outstanding common stock, pro forma for the closing and assuming the conversion of the convertible preferred stock. The investment was made at USD4.00 per share.

The additional equity capital will be used by Sun National Bank to strengthen and expand current operations as well as to pursue growth opportunities throughout the state of New Jersey.

Sun president and chief executive officer Thomas X. Geisel (pictured) says: "This transaction further strengthens our capital base, and ensures we have all the tools necessary to support our customers. This is an important step forward for the bank, our shareholders and the communities we serve."

Upon completion of the capital raising transactions, the company’s total risk-based capital ratio is projected to be at or above 14 per cent, Tier 1 risk-based capital at or above 13 per cent and leverage ratio at or above 11.75 per cent, exceeding the terms of the minimum capital requirements imposed by the Office of the Comptroller of the Currency previously announced in April.

Wilbur L. Ross, Jr., chief executive and chairman of WL Ross, says: "Sun has a comprehensive and focused business plan and is well situated in a dynamic market. We are impressed with the management team assembled under the leadership of Tom Geisel and look forward to our partnership with the company and the Brown family."

Consummation of the transaction is subject to the receipt of regulatory approvals and other customary closing conditions. At the closing, Ross will join Sun Bancorp’s and Sun National Bank’s boards of directors.

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