Bank-holding company, Sun Bancorp, Inc. /NJ (NASDAQ:SNBC), unveiled a series of changes Thursday that it said were designed to improve performance in its credit, operational and profitability metrics, including the formal hiring of Thomas M. O’Brien as president and CEO, the sale of some branches and the exit of several lines of business, the reduction of 38% of its workforce, and a one-for-five reverse-stock split.

In April, the company had said it anticipated hiring O’Brien to the president and CEO posts, but the appointment didn’t become effective until Wednesday, following a non-objection of the Federal Reserve Bank and the Office of the Comptroller of the Currency. The boards of the bank and the company also elected O’Brien as a director. He will complete the term of former director Steven A. Kass, who resigned from the boards, effective June 30, with the acquisition of his accounting firm, Rothstein-Kass, by KPMG LLP.O’Brien said the company has evaluated and decided to exit business lines in which it isn’t profitable, and will focus on those businesses where it can offer a strong menu of commercial banking products and services.

Among its restructuring moves is a purchase-and-assumption agreement with Sturdy Savings Bank in Cape May Courthouse, New Jersey, for the sale of its six offices in Cape May County as well as one office in Atlantic County. Those branches, with more than $180 million in combined total deposits and over $60 million in combined local branch loans, will be sold for a premium on deposits of 8.765% to be calculated at closing, it said.”This represents an efficient use of the Bank’s current excess liquidity and will help rationalize the expense base,” Sun Bancorp said, adding the sale “will also allow the company to begin to re-focus its efforts in its core markets and at the same time allow banking services to continue to be provided in these markets. ” The transaction is expected to be completed during Q1 2015. It is seen saving the company approximately $3.1 million annually in operating expenses and the company expects to record a net gain on the sale of approximately $10 million to $12 million.

Meanwhile, the company will cease the operations of Sun Home Loans, the bank’s retail-mortgage banking platform. Sun Home Loans will stop accepting new applications effective immediately. All current commitments for approved loans will be honored and funded according to their terms.

“The residential home loan product is further becoming significantly less profitable and much more highly regulated to the point where it has become less attractive for the bank,” said O’Brien. The bank expects this decision will result in annual cost savings of approximately $9.5 million. The bank will also de-emphasize its direct home-equity lending efforts, it said.

The company also will exit the Healthcare and the Asset-Based Lending markets it entered in 2009 and close its syndicated lending desk, and expects those moves to result in annual cost savings of approximately $1.4 million. The moves are expected to result in a cut of 38% of the company’s work force, affecting 242 full-time employees after completion of the restructuring plan, which is expected to generate an annual cost savings of approximately $16.8 million. In addition, the company ended its practice of providing certain executives with company-owned automobiles, will reduce vacation allotments for officers and redesign benefit plans for greater efficiency.

The board also declared a one-for-five reverse stock split with an effective date of Aug. 11 for shareholders of record as of Aug. 8. The reverse stock split will reduce the number of outstanding shares to approximately 17.3 million shares, from approximately 86.8 million as of March 31, 2014 . The split “is intended to promote a more appropriate trading price for company shares,” the company said.