WSFS to acquire Sun National Bank’s Delaware branches

WSFS Bank has reached an agreement to acquire Sun National Bank’s six Delaware branches for $13.2 million.

As part of the deal, which is expected to close in the fourth quarter, WSFS will assume $110 million in deposits, but no loans.

Vineland, N.J.-based Sun National Bank will continue to service its $130 million in Delaware commercial loans from its office in the Little Falls Corporate Center.

Sun has six branches in Delaware, all in New Castle County, but WSFS plans to close the branches on Kirkwood Highway and 4th Street in Wilmington, because they are near existing WSFS branches, said Stephanie Arnold, WSFS spokeswoman.

The branches on Concord Pike in Wilmington, New Castle Avenue in New Castle, Governor’s Place in Bear and Clinton Street in Delaware City will become WSFS branches, she said.

After the acquisition, WSFS will have 35 branches in Delaware and Pennsylvania, Arnold said. It is the second largest bank in New Castle County and third largest in Delaware, based on total deposits, according to the FDIC.

The deal is good news for Sun customers because it will provide them with access to the state’s largest network of ATM machines, Arnold said, and it will provide WSFS customers with more branches.

The bank opened two new branches in Smyrna and Selbyville earlier this summer and Arnold said the Sun acquisition is also a part of the company’s growth strategy.

WSFS has continued to grow despite a downturn in the economy because of its diversified portfolio of assets, said WSFS CEO Mark Turner in a statement.

The bank announced a 3 percent increase in second quarter profit in July, which will allow WSFS to continue expanding, Tuner said.

Eight banks have failed this year, but WSFS has avoided cash flow problems because it closely follows lending standards and has limited residential loans to 7 percent of its portfolio, he said.

“We have not been caught up in the sub prime lending mess like other banks have,” Arnold said. “We made great decisions not to take part in those risky assets.”

Good management practices and strong leadership have also played a role in WSFS’ expansion, Arnold said, and should carry the company into the future with a solid financial base.