Sunshine Bancorp (SBCP) 8-K Sunshine Bancorp, Inc. Reports 2015 Results; Total Assets Now Exceed $500 Million

Sunshine Bancorp

Press Release

For Immediate Release

Contact:

Brent Smith

SVP, Corporate Development

(813)659-8626

Sunshine Bancorp, Inc. Reports 2015 Results; Total Assets Now Exceed $500 Million

Plant City, FL – January 27, 2016 –

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, 2015.

Key Accomplishments During 2015

-   Announced and completed the Community Southern Holdings, Inc. acquisition

-   Announced and completed the Sarasota/Bradenton branch acquisition

-   Successfully completed common equity private placement of $12.2 million

-   Organic loan and deposit growth of $38.9 million and $9.2 million respectively

-   Noninterest income increased $868 thousand or 114% year over year

-   NPA/Assets at December 31, 2015 was 0.15%

The Company recognized a $1.8 million loss for the fourth quarter of 2015 and a $2.2 million loss for the year ended December 31, 2015.  These results include merger-related expenses of $261,000 in the fourth quarter and $1.5 million for the year, relating to the Sarasota/Bradenton branch purchase and the acquisition of Community Southern Holdings, Inc.

Total assets were $507.3 million at December 31, 2015 compared to $442.1 million at September 30, 2015 and $229.8 million at December 31, 2014.  Deposits and net loans as of December 31, 2015 totaled $399.1 million and $326.3 million, respectively, compared to deposit and net loans which totaled $163.91 million and $108.7  million, respectively, at December 31, 2014.

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Andrew Samuel, President and CEO, commented, “We are excited to report strong balance sheet growth and strategic successes during 2015.  During the fourth quarter we continued to enhance  our operations, while successfully completing and integrating our branch acquisition.  Transitioning  to a commercial banking culture requires significant investments in time, people  and dollars.  Much of the heavy lifting of this transition has been completed and we are excited about our positioning for 2016.”

The Bank’s non-performing assets as of December 31, 2015 were $783,000 compared to $2.8 million as of December 31, 2014.   The Bank’s non-performing assets to total assets ratio as of December 31, 2015 was 0.15% compared to 1.20% as of December 31, 2014. In addition, the allowance for loan losses was 334.3% of non-performing loans at December 31, 2015.

Noninterest expenses for 2015 totaled $17.3 million, compared to $8.3 million in 2014, with the increase including merger-related expenses of $1.5 million, an increased expense base from completed acquisitions, and investments the Company made to build a strong commercial banking team and the infrastructure capable of executing on its organic and strategic growth plans.  Salaries and employee benefits expense for the year ended December 31, 2015 was $9.6 million compared to $4.6 million in 2014. The increased expense in this area was primarily attributable to the addition of key employees required to fulfill the strategic vision of the Company, expenses associated with awards granted to key employees under the 2015 Stock Equity Incentive Plan and growth in the number of employees resulting from strategic growth achieved in 2015.  Fourth quarter 2015 salaries and employee benefits expense of $4.3 million was elevated significantly due to severence costs of  $707,000, $461,000 associated with the vesting of initial awards granted under the 2015 Stock Equity Incentive Plan and $450,000 in bonus accrual due to achievement of key performance metrics for 2015.

Net interest income for the year ended December 31, 2015 increased to $11.1 million compared to $3.4 million in 2014 as a result of average balance sheet growth and transitioning the mix of interest-earning assets from lower yielding investments into higher yielding organic loan growth.  Noninterest income increased by $868,000 or 114% year over year.

Stockholders’ equity increased to $71.4 million at December 31, 2015 compared to $61.6 million at December 31, 2014.

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The acquisition of Community Southern Holdings, Inc. was completed on June 30, 2015.  Subsequently, the Company completed the Sarasota/Bradenton branch acquisition on November 16, 2015.  Finally, the Company completed a $12.2 million private placement of 875,000 shares of common stock on December 5, 2015 at a price of $13.92 per share.

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 ten branch locations and two loan production offices in Hillsborough, Pasco, Polk, Manatee and Orange Counties, Florida. 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.

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Sunshine Bancorp, Inc.
Consolidated Balance Sheet
(Unaudited),(Dollars in thousands, except per share information)
	12/31/2015			12/31/2014
Assets:
Cash and due from banks	$	13,220		$	5,316
Interest-earning deposits with banks		20,933			6,568
Federal funds sold		29,601			14,475
Cash and cash equivalents		63,754			26,359
Securities held to maturity (Fair value of $0 and $75,469)		-			75,473
Securities available for sale		65,944			-
Loans held for sale		790			2,012
Loans, net of allowance for loan losses of $2,511 and $1,726		326,266			108,666
Premises and equipment, net		17,612			6,074
Federal Home Loan Bank stock, at cost		1,597			180
Cash surrender value of bank-owned life insurance		12,122			7,259
Deferred income tax asset		7,318			2,782
Goodwill and other intangibles		10,102			-
Accrued interest receivable		1,048			613
Other real estate owned		32			41
Other assets		680			361
Total assets	$	507,265		$	229,820
Liabilities and Stockholders’ Equity
Liabilities:
Noninterest-bearing demand accounts	$	89,114		$	34,774
Interest-bearing demand and savings accounts		198,977			92,897
Time deposits		111,020			36,253
Total deposits		399,111			163,924
Federal Home Loan Bank advances		27,500			-
Repurchase Agreements		1,427			-
Other liabilities		7,833			4,270
Total liabilities		435,871			168,194
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 5,259,321  at December 31, 2015 and 4,232,000 shares at December 31, 2014		53			42
Additional paid in capital		52,763			40,766
Retained income		21,846			24,091
Unearned employee stock ownership plan (“ESOP”) shares		(3,160	)		(3,273	)
Accumulated other comprehensive income		(108	)		-
Total stockholders’ equity		71,394			61,626
Total liabilities and stockholders’ equity	$	507,265		$	229,820

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Sunshine Bancorp, Inc.
Consolidated Statement of Operations
(Unaudited),(in thousands, except per share information)
	Three months Ended						Year Ended
	December 31,						December 31,
	2015			2014			2015			2014
Interest income:
Loans	$	4,001		$	1,337		$	10,963		$	5,417
Securities		158			231			683			704
Other		95			33			200			122
Total interest income		4,254			1,601			11,846			6,243
Interest Expense:
Deposits		289			71			670			298
Borrowed funds		27			-			81			-
Total interest expense		316			71			751			298
Net interest income		3,938			1,530			11,095			5,945
Provision for loan losses		-			20			-			2,500
Net interest income after provision for loan losses		3,938			1,510			11,095			3,445
Noninterest income:
Fees and service charges on deposit accounts		230			162			762			632
Gain on sale of other real estate owned		-			-			20			(204	)
Gain on sale of loans held for sale		43			-			146			66
Gain on sale of securities		-			-			195			-
Income from bank-owned life insurance		128			30			331			120
Other		70			56			175			147
Total noninterest income		471			248			1,629			761
Noninterest expenses:
Salaries and employee benefits		4,105			879			9,633			4,574
Occupancy and equipment		441			252			1,441			1,202
Data and item processing services		412			111			903			456
Professional fees		276			125			776			521
Advertising and promotion		171			7			302			49
Stationery and supplies		58			19			148			76
Deposit insurance and general insurance		156			72			343			99
Merger related		261			-			1,501			264
Other		983			255			2,229			1,016
Total noninterest expenses		6,863			1,720			17,276			8,257
(Loss) income before income taxes		(2,454	)		38			(4,552	)		(4,051	)
Income tax (benefit) expense		(678	)		(1	)		(2,321	)		(1,590	)
Net (loss) income	$	(1,776	)	$	39		$	(2,231	)	$	(2,461	)
Preferred Stock dividend requirement		-			-			(14	)		-
Net income (loss) available to common stockholders	$	(1,776	)	$	39		$	(2,245	)		(2,461	)
Basic and diluted (loss) earnings per share	$	(0.42	)	$	0.01		$	(0.56	)	$	(0.63	)

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	Quarter Ended *
	12/31/2015	9/30/2015	6/30/2015	3/31/2015	12/31/2014
Operating Highlights
Net Income	$       (1,776)	$            35	$        (151)	$        (353)	$       (2,214)
Net interest income	3,938	3,772	1,724	1,718	1,576
Provision for loan losses	-	-	-	-	1,840
Non-Interest Income	471	425	324	409	(4)
Non-Interest Expense	6,863	4,141	3,526	2,746	3,300
Financial Condition Data:
Total Assets	$     507,265	$   442,085	$    476,989	$    247,577	$      229,820
Loans, Net	326,266	320,356	307,002	118,675	108,666
Deposits:
Noninterest-bearing demand accounts	89,114	68,297	71,539	43,798	34,774
Interest-bearing demand and savings accounts	198,977	184,958	168,859	99,732	92,897
Time deposits	111,020	100,724	108,899	35,997	36,253
Total Deposits	399,111	353,979	349,297	179,527	163,924
Selected Ratios
Net interest margin	3.78%	3.71%	2.78%	3.24%	2.93%
Annualized return on average assets	(1.5%)	0.0%	(0.3%)	(0.6%)	(3.9%)
Annualized return on average equity	0.1%	0.1%	(1.0%)	(2.3%)	(14.1%)
Capital Ratios **
Total Capital Ratio	13.1%	14.3%	15.1%	31.3%	33.8%
Tier 1 capital ratio	12.4%	13.8%	14.5%	30.0%	32.6%
Common equity tier 1 capital ratio	12.4%	13.8%	14.5%	30.0%	N/A
Leverage ratio	9.8%	10.6%	20.1%	16.6%	17.0%
Asset Quality Ratios
Non-performing assets	$            783	$       1,055	$        1,666	$           413	$          2,762
Non-performing assets to total assets	0.15%	0.24%	0.35%	0.17%	1.20%
Non-performing loans to total loans	0.24%	0.32%	0.53%	0.31%	0.81%
Allowance for loan losses(AFLL)	$         2,511	$       1,947	$        1,883	$        1,743	$          1,726
AFLL to total loans	0.76%	0.60%	0.61%	1.45%	1.56%
AFLL tonon-performing loans	334.4%	190.3%	115.2%	468.6%	193.5%
* Dollars in thousands
** Capital Ratios for Sunshine Bank only