Attached files
| file | filename |
|---|---|
| EX-99.3 - UNAUDITED FINANCIAL STATEMENTS - Sunshine Bancorp, Inc. | d37305dex993.htm |
| 8-K/A - FORM 8K AMENDMENT NO 2 - Sunshine Bancorp, Inc. | d37305d8ka.htm |
| EX-99.2 - AUDITED FINANCIAL STATEMENTS - Sunshine Bancorp, Inc. | d37305dex992.htm |
Exhibit 99.4
The following unaudited pro forma condensed combined financial information is based on the historical consolidated financial statements of Sunshine Bancorp, Inc. and Community Southern Holdings, Inc. under the assumptions and adjustments set forth in the accompanying notes. The pro forma information, while helpful in illustrating the financial characteristics of Sunshine Bancorp, Inc. following the merger under one set of assumptions, does not attempt to predict or suggest future results. The pro forma information also does not necessarily reflect what the historical results of Sunshine Bancorp, Inc. would have been had our companies been combined during the period or as of the date for which the pro forma information is presented.
SUNSHINE BANCORP, INC. and COMMUNITY SOUTHERN HOLDINGS, INC.
Unaudited Pro Forma Condensed Combined Balance Sheet
As of March 31, 2015
| Historical | ||||||||||||||||
| (In thousands) |
Sunshine Bancorp Inc. |
Community Southern Holdings Inc. |
Pro Forma Adjustments |
Pro Forma Combined |
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| Assets |
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| Cash and due from banks |
$ | 44,865 | $ | 15,258 | $ | (30,294 | ) (1) | $ | 29,829 | |||||||
| Securities |
60,039 | 54,498 | (758 | ) (2) | 113,779 | |||||||||||
| Loans held for sale |
347 | 0 | 0 | 347 | ||||||||||||
| Loans held to maturity |
120,418 | 170,227 | (347 | ) (3) | 290,298 | |||||||||||
| Allowance for loan losses |
(1,743 | ) | (1,793 | ) | 1,793 | (4) | (1,743 | ) | ||||||||
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| Net loans held to maturity |
118,675 | 168,434 | 1,446 | 288,555 | ||||||||||||
| Premises and fixed assets |
6,751 | 6,009 | 173 | (5) | 12,933 | |||||||||||
| Other real estate owned |
41 | 50 | (18 | ) | 73 | |||||||||||
| Goodwill |
0 | 0 | 8,209 | (6) | 8,209 | |||||||||||
| Other intangibles |
0 | 0 | 588 | (7) | 588 | |||||||||||
| Other assets |
16,859 | 6,515 | (230 | ) (8) | 23,144 | |||||||||||
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| Total assets |
$ | 247,577 | $ | 250,764 | $ | (20,884 | ) | $ | 477,457 | |||||||
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| Liabilities and Stockholders’ Equity |
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| Liabilities | ||||||||||||||||
| Deposits |
$ | 179,527 | $ | 188,209 | $ | 182 | (9) | $ | 367,918 | |||||||
| Federal Home Loan Bank advances |
0 | 32,131 | 750 | (10) | 32,881 | |||||||||||
| Other liabilities |
6,620 | 1,184 | 124 | (11) | 7,928 | |||||||||||
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| Total liabilities |
186,147 | 221,524 | 1,056 | 408,727 | ||||||||||||
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| Stockholders’ Equity | ||||||||||||||||
| Preferred stock |
0 | 5,700 | 0 | 5,700 | ||||||||||||
| Common stock |
42 | 12,845 | (12,845 | ) (12) | 42 | |||||||||||
| Additional paid in capital |
40,766 | 10,106 | (10,106 | ) (13) | 40,766 | |||||||||||
| Retained earnings |
23,738 | 828 | 772 | (14) | 25,338 | |||||||||||
| Unearned employee stock ownership plan (“ESOP”) shares |
(3,273 | ) | 0 | 0 | (3,273 | ) | ||||||||||
| Accumulated other comprehensive income (loss) |
157 | (239 | ) | 239 | (15) | 157 | ||||||||||
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| Total stockholders’ equity |
61,430 | 29,240 | (21,940 | ) | 68,730 | |||||||||||
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| Total liabilities and stockholders’ equity |
$ | 247,577 | $ | 250,764 | $ | (20,884 | ) | $ | 477,457 | |||||||
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(continued)
1
| (1) | Cash consideration paid to Community Southern Holdings, Inc. shareholders plus merger related expenses. |
| (2) | Reflects recording the securities portfolio at fair value. |
| (3) | Reflects recording the loan portfolio at fair value. |
| (4) | Elimination of existing Community Southern Holdings, Inc. allowance for loan losses. |
| (5) | Adjustment to premises and fixed assets to record at estimated fair value. |
| (6) | Recorded goodwill as follows: |
| Consideration |
$ | 30,294 | ||||||
| Community Southern Tangible Common Equity |
21,940 | |||||||
| Estimated adjustments to reflect assets acquired at fair value: |
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| Investments |
(758 | ) | ||||||
| Loans |
(347 | ) | ||||||
| Allowance for loan losses |
1,793 | |||||||
| Core deposit intangible |
588 | |||||||
| Premises & equipment, net |
173 | |||||||
| Other Assets |
(248 | ) | ||||||
| Time deposits |
(182 | ) | ||||||
| Borrowings |
(750 | ) | ||||||
| Other liabilities |
(124 | ) | ||||||
| Net assets |
145 | |||||||
| Goodwill resulting from merger |
$ | 8,209 |
| (7) | Core deposit intangible is an identifiable intangible asset representing the economic value of the acquired Community Southern Holdings, Inc. core deposit base, calculated as the present value benefit of funding operations with the acquired core deposit base versus using an alternative wholesale funding source. The core deposit intangible asset is amortized into expense on an accelerated basis. |
| (8) | Deferred income taxes created as a result of acquisition accounting. |
| (9) | Fair value adjustment on certificates of deposit. |
| (10) | Fair value adjustment of Federal Home Loan Bank advances. |
| (11) | Fair value adjustment to Other Liabilities. |
| (12) | Elimination of Community Southern Holdings, Inc.’s common stock and other adjustments. |
| (13) | Elimination of Community Southern Holdings, Inc.’s additional paid-in capital. |
| (14) | Elimination of Community Southern Holdings, Inc.’s retained earnings, inclusive of merger-related expenses. |
| (15) | Elimination of Community Southern Holdings, Inc.’s accumulated other comprehensive income and recording of securities portfolio at fair value. |
2
Sunshine Bancorp, Inc. and Community Southern Holdings, Inc.
Unaudited Pro Forma Condensed Combined Statement of Operations
For the Three Months Ended March 31, 2015
| Historical | ||||||||||||||||
| (In thousands, except per share data) |
Sunshine Bancorp Inc. |
Community Southern Holdings, Inc. |
Pro Forma Adjustments |
Pro Forma Combined |
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| Interest Income: |
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| Loans |
$ | 1,529 | $ | 1,950 | $ | 117 | (1) | $ | 3,596 | |||||||
| Securities |
223 | 265 | 0 | 488 | ||||||||||||
| Other |
33 | 5 | 0 | 38 | ||||||||||||
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| Total interest income |
1,785 | 2,220 | 117 | 4,122 | ||||||||||||
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| Interest Expense: |
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| Deposits |
67 | 214 | (57 | )(2) | 224 | |||||||||||
| Borrowings |
0 | 198 | 0 | 198 | ||||||||||||
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| Total interest expense |
67 | 412 | (57 | ) | 422 | |||||||||||
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| Net interest income |
1,718 | 1,808 | 174 | 3,700 | ||||||||||||
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| Provision for loan losses |
0 | 61 | 0 | 61 | ||||||||||||
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| Net interest income, after provision for loan losses |
1,718 | 1,747 | 174 | 3,639 | ||||||||||||
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| Noninterest Income: |
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| Service charges and fees |
139 | 28 | 0 | 167 | ||||||||||||
| Gain (loss) on sale of securities |
142 | 0 | 0 | 142 | ||||||||||||
| Other |
128 | 144 | 0 | 272 | ||||||||||||
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| Total noninterest income |
409 | 172 | 0 | 581 | ||||||||||||
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| Noninterest Expense: |
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| Compensation and employee benefits |
1,564 | 915 | 0 | 2,479 | ||||||||||||
| Occupancy and equipment |
299 | 170 | 0 | 469 | ||||||||||||
| Other |
883 | 452 | 27 | (3) | 1,362 | |||||||||||
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| Total noninterest expense |
2,746 | 1,537 | 27 | 4,310 | ||||||||||||
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| (Loss) Income before provision for income taxes |
(619 | ) | 382 | 147 | (90 | ) | ||||||||||
| (Credit) Provision for income taxes |
(266 | ) | 92 | 55 | (4) | (119 | ) | |||||||||
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| (Loss) Net income |
$ | (353 | ) | $ | 290 | $ | 92 | $ | 29 | |||||||
| Preferred stock dividend requirements |
0 | (14 | ) | 0 | (14 | ) | ||||||||||
| Net income available to common stockholders |
(353 | ) | 276 | 92 | 15 | |||||||||||
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| (Loss) Earnings Per Share Amounts: |
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| Basic |
$ | (0.09 | ) | $ | 0.11 | $ | 0.01 | |||||||||
| Diluted |
$ | (0.09 | ) | $ | 0.11 | $ | 0.01 | |||||||||
| Weighted Average Common Shares: |
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| Basic |
3,904,725 | 2,520,478 | (2,520,478 | )(5) | 3,904,725 | |||||||||||
| Diluted |
3,904,725 | 2,520,478 | (2,520,478 | )(5) | 3,904,725 | |||||||||||
| (1) | Loan interest rate yield adjustment amortization. |
| (2) | Deposit premium amortization on certificates of deposit fair value adjustment. |
| (3) | Reflects the amortization of the core deposit intangible for the first three months of the amortization period. |
| (4) | Marginal tax rate of 37.62%. |
| (5) | Elimination of Community Southern Holdings, Inc.’s common stock and other adjustments. |
3
Sunshine Bancorp, Inc. and Community Southern Holdings, Inc.
Unaudited Pro Forma Condensed Combined Statement of Operations
For the Year Ended December 31, 2014
| Historical | ||||||||||||||||
| (In thousands, except per share data) |
Sunshine Bancorp Inc. |
Community Southern Holdings, Inc. |
Pro Forma Adjustments |
Pro Forma Combined |
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| Interest Income: |
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| Loans |
$ | 5,417 | $ | 7,507 | $ | 468 | (1) | $ | 13,392 | |||||||
| Securities |
704 | 1,309 | 0 | 2,013 | ||||||||||||
| Other |
122 | 42 | 0 | 164 | ||||||||||||
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| Total interest income |
6,243 | 8,858 | 468 | 15,569 | ||||||||||||
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| Interest Expense: |
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| Deposits |
298 | 1,122 | (228 | )(2) | 1,192 | |||||||||||
| Borrowings |
0 | 623 | 0 | 623 | ||||||||||||
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| Total interest expense |
298 | 1,745 | (228 | ) | 1,815 | |||||||||||
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| Net interest income |
5,945 | 7,113 | 696 | 13,754 | ||||||||||||
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| Provision for loan losses |
2,500 | 179 | 0 | 2,679 | ||||||||||||
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| Net interest income, after provision for loan losses |
3,445 | 6,934 | 696 | 11,075 | ||||||||||||
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| Noninterest Income: |
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| Service charges and fees |
698 | 378 | 0 | 1,076 | ||||||||||||
| Gain (loss) on sale of securities |
0 | (22 | ) | 0 | (22 | ) | ||||||||||
| Other |
63 | 213 | 0 | 276 | ||||||||||||
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| Total noninterest income |
761 | 569 | 0 | 1,330 | ||||||||||||
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| Noninterest Expense: |
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| Compensation and employee benefits |
4,574 | 3,609 | 0 | 8,183 | ||||||||||||
| Occupancy and equipment |
1,202 | 645 | 0 | 1,847 | ||||||||||||
| Other |
2,481 | 1,882 | 108 | (3) | 4,471 | |||||||||||
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| Total noninterest expense |
8,257 | 6,136 | 108 | 14,501 | ||||||||||||
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| (Loss) Income before provision for income taxes |
(4,051 | ) | 1,367 | 588 | (2,096 | ) | ||||||||||
| (Credit) Provision for income taxes |
(1,590 | ) | 301 | 221 | (4) | (1,068 | ) | |||||||||
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| (Loss) Net income |
$ | (2,461 | ) | $ | 1,066 | $ | 367 | $ | (1,028 | ) | ||||||
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| Preferred stock dividend requirements |
0 | (57 | ) | 0 | (57 | ) | ||||||||||
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| Net income available to common stockholders |
(2,461 | ) | 1,009 | 367 | (1,085 | ) | ||||||||||
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| (Loss) Earnings Per Share Amounts: |
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| Basic |
$ | (0.63 | ) | $ | 0.40 | $ | (0.28 | ) | ||||||||
| Diluted |
$ | (0.63 | ) | $ | 0.40 | $ | (0.28 | ) | ||||||||
| Weighted Average Common Shares: |
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| Basic |
3,904,725 | 2,520,478 | (2,520,478 | )(5) | 3,904,725 | |||||||||||
| Diluted |
3,904,725 | 2,520,478 | (2,520,478 | )(5) | 3,904,725 | |||||||||||
| (1) | Loan interest rate yield adjustment amortization. |
| (2) | Deposit premium amortization on certificates of deposit fair value adjustment. |
| (3) | Reflects the amortization of the core deposit intangible for the first year of the amortization period. |
| (4) | Marginal tax rate of 37.62%. |
| (5) | Elimination of Community Southern Holdings, Inc.’s common stock and other adjustments. |
4