Sun Bancorp to Acquire Mid-Penn Insurance Associates

December 26, 2002

Sun Bancorp Inc., a bank holding company headquartered in Selinsgrove, Penn., announced plans to acquire Mid-Penn Insurance Associates Inc., an independent insurance agency located in Sunbury, Penn.

Mid-Penn Insurance Associates, owned by Chris Fellon, Cheryl Zellers and Dan Geise, has 24 employees serving the commercial and personal insurance needs of clients in central Pennsylvania. The agency will retain its name as well as its experienced management team. Dan Geise will join the board of directors of Sun Bancorp.

“We are excited about adding Mid-Penn Insurance Associates to the Sun family. Our goal is to serve as a trusted advisor to our clients, and the expansion into insurance services is an ideal enhancement to our product line. Equally important, we add the expertise of Cheryl, Chris and Dan,” said Robert J. McCormack, president and chief executive officer of Sun Bancorp and SunBank.

McCormack further commented that the acquisition of Mid-Penn is not only a strategic fit relative to Sun’s customer relationship management philosophy; it also complements Sun’s goal of diversifying revenue sources and increasing fee income opportunities. Our intent is that Mid-Penn will be our foundation agency.

“Mid-Penn intends to play a major role in Sun’s strategy of building strong customer relationships built on trusted advice. Relationships with existing customers of the agency will not change, and the scope of financial services we can provide will be greatly enhanced through our affiliation with Sun,” commented Dan Geise of Mid-Penn Insurance.

The acquisition is expected to be completed in early 2003. Terms of the agreement were not disclosed, however management expects the acquisition to be accretive the first year.

Topics Mergers

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