[LOGO]
FOR IMMEDIATE RELEASE
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June 2, 2000
For Further Information, Please Contact:
Fred W. Kelly, Jr., Chairman and CEO
SUN BANCORP, INC. (SUBI)
2-16 South Market Street
PO Box 57
Selinsgrove, PA 17870
Telephone (570) 374-1131
www.sunbancorp.com
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[email protected]
SUN BANCORP, INC. (SUBI) is restructuring its investment portfolio to take
advantage of higher interest rates. However, in order to take advantage of
this opportunity, SUN BANCORP, INC. (SUBI) must sell a portion of its current
portfolio at a loss which is expected to be approximately $2.1MM.
The expected loss will significantly reduce earnings, as compared to prior
quarters. In time, the expected superior performance of the restructured
investment portfolio, including tax advantages should not only enable SUN
BANCORP, INC. (SUBI) to recover the current loss, but also to increase income to
the bank going forward. This opportunity would have been lost without
restructuring.
SUN BANCORP, INC. (SUBI) is committed to growing core value. We continue to
experience expansion of net interest income. Both loans and deposits continue
to grow as planned. The restructuring of the investment portfolio allows SUN to
complement the positive developments in the loan and deposit areas and provides
stakeholders with an investment in our future.
* * * * * * *
The management of SUN BANCORP, INC. (SUBI) has made forward-looking statements
in this press release. These forward-looking statements may be subject to risks
and uncertainties. Forward-looking statements include the information
concerning possible or assumed future investment performance and results of
operations of SUN BANCORP, INC. (SUBI) and its subsidiaries.
Shareholders and investors should note that many factors could affect the
future investment performance and financial results of SUN BANCORP, INC. (SUBI)
and its subsidiaries, both individually and collectively, and could cause those
results to differ materially from those expressed in the forward-looking
statements contained in this press release. These factors include the
following:
* Interest rate fluctuations;
* Operating, legal and regulatory risks;
* Economic, political and competitive forces affecting our banking,
securities, asset management and credit services businesses, and;
* The risk that our analyses of these risks and forces could be incorrect
and or that the strategies developed to address them could be
unsuccessful.
SUN BANCORP, INC. (SUBI) is a Pennsylvania Bank holding company with 15
offices and 34 automated teller machines throughout central Pennsylvania. Sun
reported assets of $715,746,000. at March 31, 2000. SUN BANCORP, INC. (SUBI)
stock is traded on the Nasdaq under the symbol SUBI.
2-16 SOUTH MARKET STREE
P.O. BOX 57
SELINSGROVE, PA 17870
TELEPHONE 570-374-1131
www.sunbancorp.com
