Sunshine Bancorp, Inc. - FORM 8-K - EX-99.1 - PRESS RELEASE

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8-K - FORM 8-K - Sunshine Bancorp, Inc.	d199944d8k.htm

Exhibit 99.1

LOGO

Press Release

For Immediate Release

Contact:

Brent Smith

SVP, Corporate Development

(813)659-8626

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

Plant City, FL - October 28, 2015 –

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.”

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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.

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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.

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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

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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

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	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 Ended September 30,			Nine Months Ended September 30,
	2015			2015
Reconciliation of Non-GAAP Net Income excluding Merger Related Expenses
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

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Sunshine Bancorp, Inc. - FORM 8-K - EX-99.1 - PRESS RELEASE - October 28, 2015

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Sunshine Bancorp, Inc. Reports