Sunshine Bancorp, Inc. Reports Third Quarter and First Nine Months of 2015 Financial Results

PLANT CITY, Fla.--()--Sunshine Bancorp, Inc. (the “Company”) (NASDAQ: SBCP), the holding company for Sunshine Bank (the “Bank”), has released its unaudited financial results for the third quarter and first nine months of 2015.

Net income available to common stockholders for the quarter ended September 30, 2015 was $35,000 compared to net income available to common stockholders of $39,000 for the quarter ended September 30, 2014. During the third quarter of 2015, the Company recognized $119,000 in merger related expenses, primarily residual Community Southern Bancorp, Inc. acquisition costs and to a lesser extent expenses related to the Bank’s announced and pending branch acquisition. Net income available to common stockholders, excluding merger related expenses, would have approximated $109,500, or $0.03 per share, for the third quarter of 2015.

Net loss available to common stockholders for the nine months ended September 30, 2015 was $469,000 compared to a net loss available to common stockholders of $247,000 for the nine months ended September 30, 2014. During the nine months ended September 30, 2015, the Company recognized $1.2 million in merger related expenses, predominantly related to the acquisition of Community Southern Bancorp, Inc. Net income available to common stockholders, excluding merger related expenses, would have approximated $184,000, or $0.04 per share, for the nine months ended September 30, 2015.

Total assets were $442.1 million at September 30, 2015 compared to $477.0 million at June 30, 2015 and $229.8 million at December 31, 2014. The reduction in total assets during the third quarter was a result of management’s decision to pre-pay higher cost borrowings acquired in the merger with Community Southern Holdings, Inc. The Bank continued to experience strong organic loan and deposit growth for the quarter and year to date. Organic loan growth for the third quarter and the nine months ended September 30, 2015 was $13.4 million, or 4.3%, and $40.4 million, or 36.6%, respectively. Additionally, organic deposit growth for the third quarter 2015 was $4.7 million, or 5.4% annualized. The Company continues to see a strong loan pipeline leading into the end of the year. The deposit and loan portfolios as of September 30, 2015 totaled $354.0 million and $320.4 million, respectively.

The Bank’s non-performing assets as of September 30, 2015 were $1.1 million compared to $2.8 million as of December 31, 2014. The Bank’s non-performing assets to total asset ratio as of September 30, 2015 was 0.24% compared to 1.20% as of December 31, 2014. In addition, the allowance for loan losses was 190.1% of non-performing loans at September 30, 2015.

Salaries and employee benefits expense year to date was $5.5 million compared to $2.6 million for the first nine months of 2014. The increased expense was mostly attributable to the addition of key bank employees needed to continue the Bank’s strategic shift to a growth oriented commercial bank and the increased number of employees resulting from the merger with Community Southern Holdings, Inc. Noninterest expense adjusted for merger related expenses for the third quarter 2015 totaled $4.0 million compared to adjusted expenses in the linked quarter of $2.7 million. The third quarter of 2015 was the first full quarter following the acquisition of Community Southern Holdings. In addition, during the third quarter, the Company experienced additional costs associated with building the infrastructure needed to execute on the Company’s three year strategic plan, including expenses related to the Bank’s proposed branch acquisition.

Andrew Samuel, President and CEO, commented, “We are excited to announce positive earnings for the third quarter. We continue to be focused on a smooth transition of the pending branch acquisition and executing our organic growth strategy. As we look at wrapping up 2015 we are focused on continued organic growth and finalizing the infrastructure building needed to position the organization for a smooth transition into 2016.”

Net interest income for the third quarter and first nine months of 2015 increased $2.3 million and $2.8 million, respectively, compared to prior year periods as a result of average balance sheet growth and the transitioning of interest-earning assets from lower yielding investments into higher yielding organic loan growth.

Stockholders’ equity decreased $401,000 to $61.2 million at September 30, 2015 compared to $61.6 million at December 31, 2014. Sunshine Bank exceeds the well-capitalized levels with a September 30, 2015 leverage ratio of 10.6% compared to 17.0% at December 31, 2014 and 19.0% at September 30, 2014.

The acquisition of Community Southern Holdings Inc. was completed on June 30, 2015. In addition, the Company’s pending branch purchase is anticipated to close in the fourth quarter of 2015, pending regulatory approval. The Bank’s application has been filed with the Office of the Comptroller of the Currency.

Forward Looking Statements

This news release contains forward-looking statements within the meaning of the federal securities laws. Statements in this release that are not strictly historical are forward-looking and are based upon current expectations that may differ materially from actual results. These forward-looking statements, identified by words such as “will,” “expected,” “believe,” and “prospects,” involve risks and uncertainties that could cause actual results to differ materially from those anticipated by the statements made herein. These risks and uncertainties involve general economic trends and changes in interest rates, increased competition, changes in consumer demand for financial services, the possibility of unforeseen events affecting the industry generally, the uncertainties associated with newly developed or acquired operations, and market disruptions. The Company undertakes no obligation to release revisions to these forward-looking statements publicly to reflect events or circumstances after the date hereof or to reflect the occurrence of unforeseen events, except as required to be reported under the rules and regulations of the Securities and Exchange Commission.

About Sunshine Bancorp, Inc.

Sunshine Bancorp, Inc. was formed in 2014 as the holding company for Sunshine Bank. The bank was first organized in 1954 in Plant City. In 2014 after converting from the mutual form of organization to the stock form, the current name of Sunshine Bank was adopted. Operations are conducted from the main office in Plant City, Florida and 7 additional offices in Hillsborough, Polk, and Pasco County. The Company provides financial services to individuals, families, and business customers from eight branch locations and two loan production offices in Hillsborough, Pasco, Polk and Orange Counties, Florida. Sunshine’s common stock is traded on the NASDAQ Capital Market under the symbol “SBCP.” For further information, visit the Company website www.mysunshinebank.com.

 
Sunshine Bancorp, Inc.
Consolidated Balance Sheet
(Unaudited),(Dollars in thousands, except per share information)
   
9/30/2015 12/31/2014
Assets:
Cash and due from banks $ 7,664 $ 5,316
Interest-earning deposits with bank 6,002 688
Federal funds sold   8,355     14,475  
Cash and cash equivalents 22,021 20,479
Time deposits with bank 4,655 5,880
Securities held to maturity - 75,473
Securities available for sale 49,226 -
Loans held for sale 893 2,012
Loans, net of unearned income 322,303 110,392
Less: Allowance for loan losses   1,947     1,726  
Loans, net 320,356 108,666
Accrued interest receivable 1,025 613
Other real estate owned 32 41
Federal Home Loan Bank stock 1,278 180
Premises and equipment 14,205 6,074
Cash surrender value of bank-owned life insurance 12,047 7,259
Other assets   16,347     3,143  
Total Assets $ 442,085   $ 229,820  
 
Liabilities:
Non-Interest bearing accounts $ 68,297 $ 34,774
NOW accounts 55,073 32,589
Money-Market deposit accounts 97,823 35,208
Savings accounts 32,062 25,100
Time deposits   100,724     36,253  
Total Deposits 353,979 163,924
Other borrowed money 20,000 -
Other liabilities   6,881     4,270  
Total Liabilities   380,860     168,194  
 
Common stock, $.01 par value, 50,000,000 shares authorized,
4,232,000 share issued and outstanding at September 30, 2015 and December 31, 2014 42 42
Additional paid in capital 40,766 40,766
Retained income 23,622 24,091
Unearned Employee Stock Ownership Plan shares (3,273 ) (3,273 )
Accumulated other comprehensive income   68     -  
Total Stockholder's equity   61,225     61,626  
Total Liabilities and Stockholders' Equity $ 442,085   $ 229,820  
 
 
Sunshine Bancorp, Inc.
Consolidated Statement of Operations
(Unaudited),(in thousands, except per share information)
     
  Three months Ended   Nine Months Ended
September 30, September 30,
2015 2014 2015   2014
Interest income:
Loans $ 3,909 $ 1,337 $ 6,962 $ 4,047
Securities 141 231 525 455
Other   33     33   105     97  
Total interest income 4,083 1,601 7,592 4,599
Interest Expense:
Deposits 244 71 381 230
Borrowed funds   53     -   54     -  
Total interest expense 297 71 435 230
Net interest income 3,786 1,530 7,157 4,369
Provision for loan losses   -     20   -     660  
Net interest income after provision for loan losses 3,786 1,510 7,157 3,709
Noninterest income:
Fees and service charges on deposit accounts 252 162 532 496
Gain on sale of other real estate owned - - 20 27
Gain on sale of loans held for sale - - 16 -
Gain on sale of securities - - 195 -
Income from bank-owned life insurance 86 30 203 90
Other   87     56   192     152  
Total noninterest income 425 248 1,158 765
Noninterest expenses:
Salaries and employee benefits 2,381 879 5,528 2,591
Occupancy and equipment 444 252 1,000 739
Data and item processing services 227 111 491 346
Professional fees 219 125 500 271
Advertising and promotion 55 7 131 39
Stationery and supplies 21 19 90 65
Deposit insurance and general insurance 92 72 187 196
Merger related 119 - 1,240 -
Other   583     255   1,246     710  
Total noninterest expenses 4,141 1,720 10,413 4,957
(Loss) income before income taxes 70 38 (2,098 ) (483 )
Income tax (benefit) expense   21     (1 ) (1,643 )   (236 )
Net (loss) income $ 49   $ 39   $ (455 ) $ (247 )
Preferred Stock dividend requirement   (14 )   -   (14 )   -  
Net income (loss) available to common stockholders $ 35   $ 39   $ (469 ) $ (247 )
 
Basic and diluted loss per share $ 0.01 N/A $ (0.12 ) N/A
 
 
Quarter Ended *
9/30/2015   6/30/2015   3/31/2015     12/31/2014 9/30/2014
Operating Highlights
Net Income $ 35 $ (151 ) $ (353 ) $ (2,214 ) $ 39
Net interest income 3,786 1,724 1,718 1,576 1,530
Provision for loan losses - - - 1,840 20
Non-Interest Income 425 324 409 -4 248
Non-Interest Expense 4,141 3,526 2,746 3,300 1,720
 
Financial Condition Data:
Total Assets $ 442,085 $ 476,989 $ 247,577 $ 229,820 $ 222,852
Loans, Net 320,356 307,002 118,675 108,666 110,936
Deposits:
Non-Interest Bearing Accounts 68,297 71,539 43,798 34,774 26,349
NOW accounts 55,073 54,987 33,531 32,589 29,357
Money-Market deposit accounts 97,823 82,225 41,236 35,208 35,701
Savings accounts 32,062 31,647 24,965 25,100 26,318
Time Deposits   100,724     108,899     35,997     36,253   37,964  
Total Deposits 353,979 349,297 179,527 163,924 155,689
 
Selected Ratios
Net interest margin 3.72 % 2.85 % 3.24 % 2.93 % 2.98 %
Annualized return on average assets 0.03 % -0.25 % -0.60 % -3.93 % 0.07 %
Annualized return on average equity 0.06 % -0.98 % -2.29 % -14.05 % 0.30 %
 
Capital Ratios **
Total Capital Ratio 14.31 % 15.09 % 31.29 % 33.82 % 38.52 %
Tier 1 capital ratio 13.75 % 14.51 % 30.04 % 32.57 % 37.26 %
Common equity tier 1 capital ratio 13.75 % 14.51 % 30.04 % N/A N/A
Leverage ratio 10.59 % 20.10 % 16.62 % 16.99 % 19.00 %
 
 
Asset Quality Ratios
Non-performing assets $ 1,056 $ 1,666 $ 413 $ 2,762 $ 5,813
Non-performing assets to total assets 0.24 % 0.35 % 0.17 % 1.20 % 2.61 %
Non-performing loans to total loans 0.32 % 0.53 % 0.31 % 0.81 % 4.17 %

Allowance for loan losses (AFLL)

1,947 1,883 1,743 1,726 1,796
AFLL to total loans 0.60 % 0.61 % 1.45 % 1.56 % 1.59 %
AFLL to non-performing loans 190.1 % 115.2 % 468.6 % 193.5 % 38.1 %
 
* Dollars in thousands
** Capital Ratios for Sunshine Bank only
 
Three months   Nine Months
Ended Ended

 

September 30, September 30,

Reconciliation of Non-GAAP Net Income excluding Merger Related Expenses

2015 2015
Net interest income after provision for loan losses $ 3,786 $ 7,157
Total noninterest income 425 1,158
Less: Total noninterest expenses 4,141     10,413  
(Loss) income before income taxes 70 (2,098 )
Less: Income tax (benefit) expense 21     (1,643 )
Net (loss) income 49     (455 )
Preferred Stock dividend requirement (14 )   (14 )
Net income (loss) available to common stockholders $ 35   $ (469 )
Basic and diluted loss per share $ 0.01 $ (0.11 )
 
 
Total noninterest expenses $ 4,141 $ 10,413
Less: Merger related expenses 119     1,240  
Total noninterest expenses excluding Merger Related Expenses 4,022     9,173  
(Loss) income before income taxes excluding Merger Related Expenses 189 (858 )
Less: Income tax (benefit) expense excluding Merger Related Expenses 65     (1,056 )
Net (loss) income excluding Merger Related Expenses 124     198  
Preferred Stock dividend requirement (14 )   (14 )
Net income (loss) available to common stockholders excluding Merger Related Expenses $ 110   $ 184  
Basic and diluted loss per share excluding Merger Related Expenses $ 0.03 $ 0.04
 

Contacts

Sunshine Bancorp, Inc.
Brent Smith, 813-659-8626
SVP, Corporate Development

Release Summary

Sunshine Bancorp, Inc. Reports Third Quarter and First Nine Months of 2015 Financial Results

Contacts

Sunshine Bancorp, Inc.
Brent Smith, 813-659-8626
SVP, Corporate Development