Sunshine Bancorp, Inc. (the “Company”) (NASDAQ: SBCP), the holding company for Sunshine Bank (the “Bank”), has released its unaudited financial results for the fourth quarter and the year ended December 31, 2016.

Key Accomplishments During 2016

  • Converted Tampa and Orlando loan production offices to full service branches
  • Successfully raised $11 million of subordinated debt
  • Announced and completed the Florida Bank of Commerce acquisition
  • Established a franchise connecting the Florida coasts along I4 corridor
  • Loans Outstanding Growth of 110%
  • NPA/Assets at December 31, 2016 was 0.03%

The Company recognized a $514,000 loss for the fourth quarter of 2016 and a $43,000 loss for the year ended December 31, 2016 compared to a $1.8 million loss for the fourth quarter 2015 and a $2.2 million loss for the year end December 31, 2015. The 2016 results include merger-related expenses of $2.7 million in the fourth quarter and $3.0 million for the year, relating primarily to the Florida Bank of Commerce acquisition.

Total assets were $931.4 million at December 31, 2016 compared to $564.0 million at September 30, 2016 and $507.3 million at December 31, 2015. Net loans increased to $683.8 million at December 31, 2016 compared to $396.0 million at September 30, 2016 and $326.3 million at December 31, 2015. Year over year loan growth was 109.6%. Total deposits were $729.9 million at December 31, 2016 compared to $438.8 million at September 30, 2016 and $399.1 million at December 31, 2015. The Bank’s deposit composition as of December 31, 2016 was 78% core deposits and 22% time deposits. Noninterest bearing deposits equaled 30% of total deposits at December 31, 2016 compared to 22% at December 31, 2015.

Andrew Samuel, President and CEO, commented, “A little over two years ago the organization set course to build a dominant community bank in Florida. With the acquisition of Florida Bank of Commerce fully integrated we have achieved the critical mass needed to begin to produce appropriate returns for our shareholders. The strategic and organic achievements of the past two years have produced a well-positioned balance sheet as of December 31, 2016, and will substantially increase the earnings power of our franchise in 2017.”

The Bank’s non-performing assets as of December 31, 2016 were $323,000 compared to $783,000 as of December 31, 2015. The Bank’s non-performing assets to total assets ratio as of December 31, 2016 was 0.03% compared to 0.15% as of December 31, 2015. In addition, the allowance for loan losses was 1125.1% of non-performing loans at December 31, 2016.

Noninterest expenses for 2016 totaled $21.6 million, compared to $17.3 million in 2015. The increase included an increase in merger-related expenses which totaled $3.0 million in 2016 and an increased expense base from our previously completed acquisitions and loan production office conversions to full service branches. The Company does not anticipate incurring further significant merger related expenses associated with the Florida Bank of Commerce acquisition.

Salaries and employee benefits expense for the year ended December 31, 2016 was $10.8 million compared to $9.6 million in 2015. The Company undertook several expense saving initiatives throughout the year in addition to the cost savings to be achieved in the Florida Bank of Commerce acquisition. Fourth quarter 2016 salaries and employee benefits expense was $3.3 million which represents only a partial quarter of combined company expense given the acquisition closed on October 31, 2016.

Net interest income for the year ended December 31, 2016 was $18.9 million, an increase of $7.8 million from the $11.1 million for the year ended December 31, 2015. Since the Company’s new strategic plan was initiated, net interest income has experienced growth of $12.9 million over the past two years. Net interest income for the fourth quarter 2016 was $6.7 million compared to $4.3 million in the third quarter of 2016 and $3.9 million during the fourth quarter of 2015.

Stockholders’ equity increased to $112.1 million at December 31, 2016 compared to $71.4 million at December 31, 2015.

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. The Company provides financial services to individuals, families, and business customers from 18 branch locations stretching from the East Coast to the West Coast of Florida in Brevard, Hillsborough, Manatee, Orange, Osceola, Pasco, Polk, Sarasota, and Seminole Counties. The Company’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

(Dollars in thousands, except per share information)

       
As of December 31, As of December 31,
2016 2015
(Unaudited)
Assets
Cash and due from banks $   16,562 $   13,220
Interest-earning deposits in financial institutions 21,386 16,523
Federal funds sold     12,325     29,601
Cash and cash equivalents 50,273 59,344
Time deposits with banks 2,794 4,410
Securities available for sale 109,668 65,944
Loans held for sale 443 790
Loans, net of allowance for loan losses of $3,274 and $2,511 683,784 326,266
Premises and equipment, net 25,920 17,612
Federal Home Loan Bank stock, at cost 3,478 1,597
Cash surrender value of bank-owned life insurance 22,462 12,122
Deferred income tax asset 6,660 6,426
Goodwill and other intangibles 22,308 10,101
Accrued interest receivable 2,077 1,048
Other real estate owned 32 32
Other assets     1,536     1,573
Total assets $   931,435 $   507,265
 
Liabilities and Stockholders’ Equity
Liabilities:
Noninterest-bearing demand accounts $ 217,418 $ 89,114
Interest-bearing demand and savings accounts 354,327 198,977
Time deposits     158,204     111,020
Total deposits 729,949 399,111
Other borrowings 71,867 28,927
Subordinated Notes 11,000 -
Other liabilities     6,518     7,833

Total liabilities

 819,334 435,871
 
Stockholders’ equity:
Preferred stock, $0.01 par value, 5,000,000
authorized; none outstanding - -
Common stock, $0.01 par value, 50,000,000 shares
authorized; issued and outstanding of 7,986,074 at
December 31, 2016 and 5,259,321 at December 31, 2015 80 53
Additional paid in capital 94,302 52,763
Retained income 21,803 21,846
Unearned employee stock ownership plan (“ESOP”) shares (3,047) (3,160)
Accumulated other comprehensive income     (1,037)     (108)
Total stockholders’ equity     112,101     71,394
Total liabilities and stockholders’ equity $   931,435 $   507,265
Sunshine Bancorp, Inc.
Consolidated Statement of Operations
(Dollars in thousands, except per share information)

 

  Three months Ended   Twelve months Ended
December 31, December 31,
2016   2015 2016   2015
Interest income: (Unaudited) (Unaudited)
Loans $   6,966 $   4,001 $   19,644 $   10,963
Securities 339 158 1,023 683
Other     96     95     260     200
Total interest income     7,401     4,254     20,927     11,846
Interest Expense:
Deposits 458 289 1,426 670
Borrowed funds     223     27     588     81
Total interest expense     681     316     2,014     751
Net interest income 6,720 3,938 18,913 11,095
Provision for loan losses     -     -     350     -
Net interest income after provision for loan losses     6,720     3,938     18,563     11,095
Noninterest income:
Fees and service charges on deposit accounts 416 230 1,368 762
Gain on sale of other real estate owned - - 18 20
Mortgage Broker Fees 41 43 152 146
Gain on sale of securities - - 208 195
Income from bank-owned life insurance 113 128 402 331
Other     131     70     1,038     175
Total noninterest income     701     471     3,186     1,629
Noninterest expenses:
Salaries and employee benefits 3,311 4,105 10,752 9,633
Occupancy and equipment 636 441 2,342 1,441
Data and item processing services 404 457 1,581 948
Professional fees 143 276 808 776
Advertising and promotion 27 171 107 302
Stationery and supplies 40 58 205 148
FDIC Deposit insurance 124 102 422 289
Merger related 2,653 261 2,955 1,501
Other     634     992     2,443     2,238
Total noninterest expenses     7,972     6,863     21,615     17,276
Income (Loss) before income taxes (551) (2,454) 134 (4,552)
Income tax (benefit) expense     (37)     (678)     177     (2,321)
Net income (loss) $   (514) $   (1,776) $   (43) $   (2,231)
Preferred Stock dividend requirement     -     -     -     (14)
Net income (loss) available to common stockholders $   (514) $   (1,776) $   (43) $   (2,245)
 
Basic earnings (loss) per share $   (0.10) $   (0.42) $   (0.01) $   (0.56)
Diluted earnings (loss) per share $   (0.10) $   (0.42) $   (0.01) $   (0.56)
   
Three Month Periods Ended *
12/31/2016   9/30/2016   6/30/2016   3/31/2016   12/31/2015
Operating Highlights (Unaudited)
Net Income (Loss) $ (514) $ 244 $ 73 $ 154 $ (1,776)
Net interest income 6,720 4,306 3,873 4,014 3,938
Provision for loan losses - - 350 - -
Non-Interest Income 701 669 1,149 667 471
Non-Interest Expense 7,972 4,602 4,563 4,478 6,863
 
Financial Condition Data:
Total Assets $ 931,435 $ 563,992 $ 514,729 $ 523,067 $ 507,265
Loans, Net 683,784 395,994 371,538 337,784 326,266
Deposits:
Noninterest-bearing demand accounts 217,418 85,304 92,342 101,490 89,114
Interest-bearing demand and savings accounts 354,327 234,697 199,121 207,410 198,977
Time deposits   158,204   118,766   103,852   106,300   111,020
Total Deposits 729,949 438,767 395,315 415,200 399,111
 
Selected Ratios
Net interest margin 3.78% 3.69% 3.53% 3.64% 3.78%
Annualized return (loss) on average assets (0.3%) 0.2% 0.1% 0.1% (1.5%)
Annualized return (loss) on average equity (2.2%) 1.4% 0.4% 0.9% (11.2%)
 
Capital Ratios **
Total Capital Ratio 12.7% 15.8% 15.4% 15.6% 13.1%
Tier 1 capital ratio 12.2% 15.2% 14.7% 14.9% 12.4%
Common equity tier 1 capital ratio 12.2% 15.2% 14.7% 14.9% 12.4%
Leverage ratio 10.0% 12.6% 12.1% 11.3% 9.8%
 
 
Asset Quality Ratios
Non-performing assets $ 323 $ 988 $ 1,324 $ 985 $ 783
Non-performing assets to total assets 0.03% 0.18% 0.26% 0.19% 0.15%
Non-performing loans to total loans 0.04% 0.24% 0.35% 0.28% 0.23%
Allowance for loan losses(AFLL) $ 3,274 $ 2,846 $ 2,895 $ 2,532 $ 2,511
AFLL to total loans 0.48% 0.71% 0.77% 0.74% 0.76%
AFLL to non-performing loans 1125.1% 297.7% 224.1% 265.7% 334.4%
 
* Dollars in thousands
** Capital Ratios for Sunshine Bank only