Sunshine Bancorp (SBCP) 8-K Sunshine Bancorp, Inc. Reports Third Quarter 2016 Financial Results

Sunshine Bancorp

Press Release

For Immediate Release

Contact:

Brent Smith

SVP, Corporate Development

(813)659-8626

Sunshine Bancorp, Inc. Reports Third Quarter 2016 Financial Results

Plant City, FL – October 25, 2016 –

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 2016.

Key Highlights Year to Date:

-   Annualized loan growth of 28.5%

-   Maintaining credit quality with 0.18% NPAs at September 30, 2016

-   Plans to close Florida Bank of Commerce transaction on October 31, 2016

-   Continued Net Income Improvement

Net income for the three months ended September 30, 2016 was $244,000 which included $207,000 of merger related expenses, compared to net income of $73,000 for the three months ended June 30, 2016 and net income of $35,000 for the three months ended September 30, 2015.  Net income for the nine months ended September 30, 2016 was $471,000 compared to a net loss of $469,000 during the nine months ended September 30, 2015.

Total assets were $564.0 million at September 30, 2016 compared to $514.7 million at June 30, 2016 and $507.3 million at December 31, 2015.  The Bank continued to experience organic loan growth during the third quarter 2016.  During the quarter, net loans increased $24.5 million or 26.4% annualized.  The loan portfolio as of September 30, 2016 totaled $396.0 million compared to $371.5 million at June 30, 2016 and $326.3 million at December 31, 2015. Loan growth for the nine months ended September 30, 2016 was $69.7 million, or 28.5% annualized.  Deposits at September 30, 2016 were $438.8 million compared to $395.3 million at June 30, 2016 and $399.1 million at December 31, 2015.  Stockholders’ equity increased $468,000 during the third quarter 2016 to $72.7 million at September 30, 2016 compared to $71.4 million at December 31, 2015.  The Bank exceeds well-capitalized levels with a September 30, 2016 leverage ratio of 12.4% compared to 9.8% at December 31, 2015.

Net interest income for the three months ended September 30, 2016 was $4.3 million compared to $3.8 million for the third quarter of 2015 and $3.9 million for the three months ended June 30, 2016, an increase of $433,000 or 11.2% over the previous linked quarter. Net interest income for the nine months ended September 30, 2016 was $12.2 million compared to $7.2 million for the nine months ended September 30, 2015.  The Company has experienced a 70.4% increase in net interest income and a 114.6% increase in non-interest income, while concurrently experiencing expense growth of 31.0% during the nine month period ended September 30, 2016 compared to the same period in 2015.  The Company believes that the impact of its strategic initiatives and achieving scale will continue to bolster the Company’s future profitability trajectory.

Non-interest income for the three months ended September 30, 2016 was $669,000 compared to $425,000 for the three months ended September 30, 2015 and $1.1 million for the three months ended June 30, 2016.  Non-interest income for the nine months ended September 30, 2016 was $2.5 million compared to $1.2 million for the nine months ended September 30, 2015. Non-interest expense was $4.6 million for the three months ended September 30, 2016 compared to $4.1 million for the three months ended September 30, 2015 and $4.6 million for the three months ended June 30, 2016. The Company recognized $207,000 of expense in the third quarter 2016 attributable to the pending merger with Florida Bank of Commerce (“FBC”).

The Bank’s credit metrics remain strong.  The Bank’s non-performing assets as of September 30, 2016 were $988,000 compared to $1.3 million as of June 30, 2016.  The Bank’s non-performing assets to total asset ratio as of September 30, 2016 was 0.18% compared to 0.26% as of June 30, 2016. In addition, the allowance for loan losses was 297.7% of non-performing loans at September 30, 2016.

Andrew Samuel, President and CEO, commented, “We are excited to close the Florida Bank of Commerce deal in the next few days.  Our focus on organic growth and improved performance metrics continues to show results.  We are excited about our momentum and as an organization we are focused on integration and continued improvement in top line growth as well as maximizing the combined company expense structure.”

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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, 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. Operations are conducted from the main office in Plant City, Florida and eleven additional offices in Hillsborough, Polk, Manatee, Orange, and Pasco Counties, Florida. The Company provides community bank financial services to individuals, families, and business customers. Sunshine’s common stock is traded on the NASDAQ Capital Market under the symbol “SBCP.” For further information, visit the company’s website at www.mysunshinebank.com

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	Quarter Ended *
	9/30/2016			6/30/2016			3/31/2016			12/31/2015			9/30/2015
Operating Highlights:	(unaudited)
Net Income (loss)	$	244		$	73		$	154		$	(1,776	)	$	35
Net interest income		4,306			3,873			4,014			3,938			3,786
Provision for loan losses		-			350			-			-			-
Non-Interest Income		669			1,149			667			471			425
Non-Interest Expense		4,602			4,563			4,478			6,863			4,141
Financial Condition Data:
Total Assets	$	563,992		$	514,729		$	523,067		$	507,265		$	442,085
Loans, Net		395,994			371,538			337,784			326,266			320,356
Deposits:
Noninterest-bearing demand accounts		85,304			92,342			101,490			89,114			68,297
Interest-bearing demand and savings accounts		234,697			199,121			207,410			198,977			184,958
Time deposits		118,766			103,852			106,300			111,020			100,724
Total Deposits		438,767			395,315			415,200			399,111			353,979
Selected Ratios:
Net interest margin		3.69	%		3.53	%		3.64	%		3.78	%		3.72	%
Annualized return (loss) on average assets		0.2	%		0.1	%		0.1	%		(1.5	%)		0.0	%
Annualized return (loss) on average equity		1.4	%		0.4	%		0.9	%		(11.2	%)		0.1	%
Capital Ratios: **
Total Capital Ratio		15.5	%		15.4	%		15.6	%		13.1	%		14.3	%
Tier 1 capital ratio		14.9	%		14.7	%		14.9	%		12.4	%		13.8	%
Common equity tier 1 capital ratio		14.9	%		14.7	%		14.9	%		12.4	%		13.8	%
Leverage ratio		12.4	%		12.1	%		11.3	%		9.8	%		10.6	%
Asset Quality Ratios:
Non-performing assets	$	988		$	1,324		$	985		$	783		$	1,055
Non-performing assets to total assets		0.18	%		0.26	%		0.19	%		0.15	%		0.24	%
Non-performing loans to total loans		0.24	%		0.35	%		0.28	%		0.24	%		0.32	%
Allowance for loan losses(AFLL)	$	2,846		$	2,895		$	2,532		$	2,511		$	1,947
AFLL to total loans		0.71	%		0.77	%		0.74	%		0.76	%		0.60	%
AFLL to  non-performing loans		297.7	%		224.1	%		265.7	%		334.4	%		190.3	%
* Dollars in thousands
** Capital Ratios for Sunshine Bank only

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Sunshine Bancorp, Inc.

Consolidated Balance Sheet

(Dollars in thousands, except per share information)

	As of September 30, 2016			As of December 31, 2015
Assets	(unaudited)
Cash and due from banks	$	12,476		$	13,220
Interest-earning deposits in financial institutions		14,206			16,523
Federal funds sold		28,589			29,601
Cash and cash equivalents		55,271			59,344
Time deposits with banks		2,695			4,410
Securities available for sale		61,036			65,944
Loans held for sale		-			790
Loans, net of allowance for loan losses of $2,846 and $2,511		395,994			326,266
Premises and equipment, net		16,866			17,612
Federal Home Loan Bank stock, at cost		1,944			1,597
Cash surrender value of bank-owned life insurance		12,366			12,122
Deferred income tax asset		6,108			6,426
Goodwill and other intangibles		10,016			10,101
Accrued interest receivable		1,110			1,048
Other real estate owned		32			32
Other assets		554			1,573
Total assets	$	563,992		$	507,265
Liabilities and Stockholders’ Equity
Liabilities:
Noninterest-bearing demand accounts	$	85,304		$	89,114
Interest-bearing demand and savings accounts		234,697			198,977
Time deposits		118,766			111,020
Total deposits		438,767			399,111
Other borrowings		36,803			28,927
Subordinated Notes		11,000			-
Other liabilities		4,712			7,833
Total liabilities		491,282			435,871
Stockholders’ equity:
Preferred stock		-			-
Common stock		53			53
Additional paid in capital		53,400			52,763
Retained income		22,317			21,846
Unearned employee stock ownership plan (“ESOP”) shares		(3,160	)		(3,160	)
Accumulated other comprehensive income		100			(108	)
Total stockholders’ equity		72,710			71,394
Total liabilities and stockholders’ equity	$	563,992		$	507,265

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Sunshine Bancorp, Inc.

Consolidated Statement of Operations

(Unaudited), (in thousands, except per share information)

	Three months Ended					Nine months Ended
	Sept. 30					Sept. 30,
		2016		2015			2016		2015
Interest income:
Loans	$	4,582	$	3,909		$	12,678	$	6,962
Securities		222		141			684		525
Other		43		33			164		105
Total interest income		4,847		4,083			13,526		7,592
Interest Expense:
Deposits		349		244			968		381
Borrowed funds		192		53			366		54
Total interest expense		541		297			1,334		435
Net interest income		4,306		3,786			12,192		7,157
Provision for loan losses		-		-			350		-
Net interest income after provision for loan losses		4,306		3,786			11,842		7,157
Noninterest income:
Fees and service charges on deposit accounts		314		252			952		532
Gain on sale of other real estate owned		18		-			18		20
Mortgage Broker Fees		42	��	-			112		16
Gain on sale of securities		77		-			208		195
Income from bank-owned life insurance		97		86			289		203
Other		121		87			906		192
Total noninterest income		669		425			2,485		1,158
Noninterest expenses:
Salaries and employee benefits		2,423		2,381			7,440		5,528
Occupancy and equipment		544		444			1,706		1,000
Data and item processing services		440		227			1,177		491
Professional fees		246		219			665		500
Advertising and promotion		13		55			80		131
Stationery and supplies		64		21			165		90
FDIC Deposit insurance		96		92			298		187
Merger related		207		119			302		1,240
Other		569		583			1,809		1,246
Total noninterest expenses		4,602		4,141			13,642		10,413
Income (Loss) before income taxes		373		70			685		(2,098	)
Income tax (benefit) expense		129		21			214		(1,643	)
Net income (loss)	$	244	$	49		$	471	$	(455	)
Preferred Stock dividend requirement		-		(14	)		-		(14	)
Net income (loss) available to common stockholders	$	244	$	35		$	471	$	(469	)
Basic earnings (loss) per share	$	0.05	$	0.01		$	0.09	$	(0.12	)
Diluted earnings (loss) per share	$	0.05	$	0.01		$	0.09	$	(0.12	)

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