Boston, MA 04/07/2014 (wallstreetpr) – Shares of Sun Bancorp, Inc. /NJ (NASDAQ:SNBC) jumped to a new 52-week high Friday following news that the company hired a veteran banking executive as its new CEO and president.
The company announced that it agreed to tap Thomas M. O’Brien as its president and chief executive officer. He will replace Thomas X. Geisel who was ousted in November last year. The ouster of Mr. Geisel was linked to the series of quarterly losses which the company suffered and continued to suffer up to the most recent quarter. Mr. Geisel led the company since 2008, until late 2013 when his tenure was cut short.
Following the ouster of Mr. Geisel, the board decided on Sidney R. Brown to serve as the interim CEO and president of the company. The family of Mr. Brown owns majority stake in Sun Bancorp, Inc. /NJ (NASDAQ:SNBC).
Achieving results
The hiring of Mr. O’Brien is expected to help the company put an end to its series of losses and return value to shareholders. That is why his statement to build long-term value with himself as a significant shareholder in the company ended up inspiring confidence among investors.
The interim CEO and president Mr. Brown observed that O’Brien is expected to be a catalyst in helping the company to complete its regulatory compliance plan and advance growth. Thus, the company counts on Mr. O’Brien to help achieve operational stability, growth and profitability.
A little wait time
Mr. O’Brien will not be able to immediately assume the CEO and president roles at Sun Bancorp, Inc. /NJ (NASDAQ:SNBC). Instead, he will be a consultant to the board until the bank receives Federal Reserve Board and Comptroller of the Currency approvals.
Financial performance
The board and shareholders of Sun Bancorp, Inc. /NJ (NASDAQ:SNBC) have had very little to celebrate about the company’s financial performance in the past year. The company suffered $10.1 million loss in 2013 and as much as $8.4 million in the fourth quarter of the fiscal year. These are the numbers which the board and shareholders hope the incoming CEO will be able to improve.
