Sunshine Bancorp (SBCP) 8-K Sunshine Bancorp, Inc. Reports Fourth Quarter and Year End 2014 Financial Results

Sunshine Bank

Press Release

For Immediate Release

Contact:

Andrew S. Samuel

President and Chief Executive Officer

(813)659-8622

Sunshine Bancorp, Inc. Reports Fourth Quarter and Year End 2014 Financial Results

Plant City, FL- February 3, 2015-Sunshine Bancorp, Inc. (the “Company”) (NASDAQ: SBCP), the holding company for Sunshine Bank (the “Bank”), has released its unaudited financial statements for the full year and fourth quarter of 2014.

Net income (loss) reported for the full year ended December 31, 2014 was ($2.5) million compared to $141,000 for 2013.

During the fourth quarter of 2014 management took steps to solidify the balance sheet and prepare the franchise for growth in 2015.  In a desire to enhance the Bank’s asset quality, a sale of select credits was initiated during the fourth quarter.  In December 2014, $2.1 million in loan balances were sold.  A remaining principal balance of $2.9 million was transferred to held for sale at year end at a net amount of $1.8 million. The total balances of loans sold was $5.0 million.  The provision for loan losses for the full year 2014 was $2.5 million compared to no provision expense for the full year 2013.  Nonperforming assets to total assets was 1.20% at the end of 2014 compared to 2.61% in the linked quarter and 2.70% as of December 31, 2013.  The allowance for loan losses was strengthened to 193% of non-performing loans at December 31, 2014 compared to 45% at December 31, 2013.

Salary and benefit expense for 2014 was $4.6 million compared to $3.5 million in 2013. The increase in salary and benefit expense was due to the addition of key Bank employees in critical areas such as commercial lending, risk management, credit and information technology.    In addition, the fourth quarter included one-time expenses associated with early retirement offerings and expenses associated with the Bank’s new Employee Stock Ownership Plan.

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Andrew Samuel, President and CEO, commented, “The fourth quarter was an important transition quarter for our company.  We are very excited about our improved credit metrics and the strong foundation in place.  This foundation is critical to our future growth plans in 2015 and beyond.”

Net interest income increased $224,000 to $5.9 million for 2014 as compared to 2013 as a result of increased income on securities and a decrease in interest expense on deposits.

Total assets amounted to $229.8 million at December 31, 2014 compared to $194.4 million at December 31, 2013.  The asset growth came primarily from growth in the securities portfolio through the investment of conversion proceeds.  The duration on these investments has been kept short in order to allow for future deployment into commercial loan growth.  Over the same time period, loans were down $2.6 million.  The 2014 fourth quarter loan sales contributed to a loan balance reduction of $5.0 million.  Total deposits were $163.9 million at December 31, 2014 compared to $164.9 million at December 31, 2013.

Stockholders’ equity increased $35.1 million to $61.6 million at December 31, 2014 compared to December 31, 2013.  The increase in stockholders’ equity was the result of the net proceeds from the mutual-to-stock conversion which was completed in July 2014.  Sunshine Bank exceeds the well-capitalized levels with a December 31, 2014 leverage ratio of 17% compared to 13% at December 31, 2013.

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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, indentified 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 company 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 4 additional offices in Hillsborough and Pasco County. The Company provides financial services to individuals, families and businesses primarily located in Hillsborough County and Pasco County, Florida. Sunshine’s common stock is traded on the NASDAQ Capital Market under the symbol “SBCP.” For further information, visit the Company website www.sunshinestatefederal.com.

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Sunshine Bancorp, Inc.
Consolidated Balance Sheet
(Unaudited)(Dollars in thousands, except per share information)
	December 31,			December 31,
	2014			2013
Assets:
Cash and due from banks	$	5,316		$	2,391
Interest-earning deposits with bank		688			7,545
Federal funds sold		14,475			1,118
Cash and cash equivalents		20,479			11,054
Time deposits with bank		5,880			9,528
Securities held to maturity		75,473			48,436
Loans held for sale		2,012			-
Loans, net of unearned income		110,392			112,981
Less: Allowance for loan losses		1,726			1,718
Loans, net		108,666			111,263
Premises and equipment		6,074			6,128
Federal Home Loan Bank stock, at cost		180			237
Cash surrender value of bank-owned life insurance		7,259			4,089
Accrued interest receivable		613			581
Other real estate owned		41			1,422
Other assets		3,143			1,701
TOTAL ASSETS	$	229,820		$	194,439
Liabilities:
Noninterest-bearing accounts	$	34,774		$	29,123
NOW accounts		32,589			30,129
Money-market deposit accounts		35,208			35,713
Savings accounts		25,100			25,724
Time Deposits		36,253			44,230
Total Deposits		163,924			164,919
Interest Payable		3			3
Other Borrowed Money		-			-
Other Liabilities		4,267			2,965
Total Liabilities		168,194			167,887
Common Stock, $.01 par value, 50,000,000 shares authorized,
4,232,000 share issued and outstanding at December 31, 2014		42			-
Additional Paid in Capital		40,766			-
Retained income		24,091			26,552
Unearned Employee Stock Ownership Plan shares		(3,273	)		-
Total Stockholders' equity		61,626			26,552
Total Liabilities and Stockholders' Equity	$	229,820		$	194,439

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Sunshine Bancorp, Inc.
Consolidated Statement of Operations
(Unaudited) (In thousands)
	Year Ended					Three Months Ended
	12/31/2014			12/31/2013		12/31/2014			12/31/2013
Interest Income:
Loans	$	5,417		$	5,569	$	1,370		$	1,370
Securities		704			408		249			101
Other		122			118		25			28
Total Interest Income		6,243			6,095		1,644			1,499
Interest Expense:
Interest expense - deposit accounts		298			374		68			86
Total Interest Expense		298			374		68			86
Net Interest Income		5,945			5,721		1,576			1,413
Provision For Loan Losses		2,500			-		1,840			-
Net Interest Income (loss) after provision for loan losses		3,445			5,721		(264	)		1,413
Noninterest income:
Fees and service charges on deposit accounts		632			668		136			183
Fees and charges on loans		66			75		15			16
Gain/(loss) on sale of other real estate owned		(204	)		3		(231	)		-
Income from bank-owned life insurance		120			122		30			30
Other		147			62		46			12
Total noninterest income		761			930		(4	)		241
Noninterest Expense:
Salaries and employee benefits		4,574			3,467		1,983			878
Occupancy and equipment		1,202			984		463			241
Data and item processing services		456			457		110			112
Professional fees		521			241		250			61
Other real estate owned		49			62		10			18
Advertising and promotion		76			70		37			16
Stationery and supplies		99			71		34			14
Deposit insurance and general insurance		264			248		68			61
Other		1,016			805		345			208
Total noninterest expense		8,257			6,405		3,300			1,609
Income(loss) before income (benefit) taxes		(4,051	)		246		(3,568	)		45
Income (benefit) taxes		(1,590	)		105		(1,354	)		17
Net Income (loss)	$	(2,461	)	$	141	$	(2,214	)	$	28

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	Quarter Ended***
	12/31/2014*			9/30/2014*			6/30/2014			3/31/2014			12/31/2013
Operating Highlights
Net Income (loss)	$	(2,214	)	$	39		$	(330	)	$	44		$	28
Net interest income		1,576			1,530			1,439			1,400			1,413
Provision for loan losses		1,840			20			640			-			-
Non-Interest Income		(4	)		248			276			241			241
Non-Interest Expense		3,300			1,720			1,642			1,595			1,609
Financial Condition Data:
Total Assets	$	229,820		$	222,852		$	311,779		$	201,411		$	194,439
Loans, Net		108,666			110,936			108,395			109,937			111,263
Non-Interest Bearing Accounts		34,774			26,349			29,589			30,435			29,123
NOW accounts		32,589			29,357			30,202			31,876			30,129
Money-Market deposit accounts		35,208			35,701			36,721			40,524			35,713
Savings accounts		25,100			26,318			26,763			25,892			25,724
Time Deposits		36,253			37,964			42,033			43,129			44,230
Total Deposits		163,924			155,689			165,308			171,856			164,919
Selected Ratios
Net interest margin		2.93	%		2.98	%		-2.62	%		3.12	%		3.04	%
Annualized return on average asset		-3.93	%		0.07	%		-0.59	%		0.09	%		0.06	%
Annualized return on average equity		-14.05	%		0.30	%		-4.98	%		0.66	%		0.42	%
Capital Ratios**
Total risk based capital ratio		33.82	%		38.52	%		24.78	%		25.13	%		25.26	%
Tier 1 capital ratio		32.57	%		37.26	%		23.53	%		23.88	%		24.00	%
Leverage ratio		16.99	%		19.00	%		8.04	%		12.71	%		13.14	%
Asset Quality Ratios
Non-performing loans to total loans		0.81	%		4.17	%		3.46	%		3.16	%		3.37	%
Non-performing assets to total assets		1.20	%		2.61	%		1.64	%		2.43	%		2.70	%
Allowance for loan losses to total loans		1.56	%		1.59	%		1.60	%		1.54	%		1.52	%
Allowance for loan losses to
non-performing loans		193.28	%		38.09	%		46.32	%		48.68	%		44.95	%
*On July 14, 2014, the mutual-to-stock conversion of the Bank was completed and the Company became
the savings and loan holding company of the Bank.
**Capital Ratios for Sunshine Bank only.
***Dollars in thousands.