* Q2 loss per shr $0.38 vs EPS $0.10 last year

* Q2 Reuters Estimates loss per shr view $0.19

* Q2 net interest income $23.8 mln vs $24.6 mln yr ago

* Q2 total operating expense up 21 pct to $27.7 mln

July 20 (Reuters) - Sun Bancorp Inc (SNBC.O: Quote, Profile, Research) posted a wider-than-expected net loss for the second quarter, hurt by lower non-interest income and a rise in expenses.

The combined costs of repayment under the Troubled Assets Relief Program funds, the Federal Deposit Insurance Corp's special deposit insurance assessment and the write down of the trust preferred security in the investment portfolio accounted for $10.3 million, pre-tax, and essentially offset the company's income, Chief Executive Thomas Geisel said in a statement.

For the quarter, Sun Bancorp reported a net loss of $8.8 million, or 38 cents a share, compared with a net income of $2.3 million, or 10 cents a share a year ago.

Analysts expected the company, which owns Sun National Bank, to post a loss of 19 cents a share, excluding items, according to Reuters Estimates.

Net interest income for the quarter was $23.8 million, compared with $24.6 million last year.