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Sunshine Bancorp, Inc. Reports Record Earnings and 1st Quarter Results

PLANT CITY, Fla.--(BUSINESS WIRE)--

Sunshine Bancorp, Inc. (the “Company”) (SBCP), the holding company for Sunshine Bank (the “Bank”), has released its unaudited consolidated financial results for the first quarter of 2017.

Key Highlights from the 1st Quarter 2017

  • Earnings of $0.21 per basic and diluted share
  • Year over year revenue growth of 90%
  • Annualized deposit growth of 22% led by non-interest bearing deposits
  • Year over year non-interest income growth of 61%
  • Maintained top tier credit metrics with NPAs to Assets at 0.06%

The Company recognized net income of $1.6 million for the first quarter of 2017 compared to a net loss of $514,000 for the fourth quarter 2016 and net income of $154,000 for the first quarter 2016.

Total assets were $956.4 million at March 31, 2017 compared to $931.4 million at December 31, 2016 and $523.1 million at March 31, 2016. Net loans increased to $689.7 million at March 31, 2017 compared to $683.8 million at December 31, 2016 and $337.8 million at March 31, 2016. First quarter 2017 loan originations, including unfunded loans and commitments, were approximately $38 million as some of the originations were scheduled to fund subsequent to March 31, 2017.

Total deposits were $771.2 million at March 31, 2017 compared to $729.9 million at December 31, 2016 and $415.2 million at March 31, 2016. Annualized deposit growth for the first quarter of 2017 was 22% led by non-interest bearing deposit growth of $25.9 million or 48% annualized. The Bank’s deposit composition as of March 31, 2017 included 80% core deposits and 20% in time deposits with an average cost of 0.31%.

Andrew Samuel, President and CEO, commented, “We are excited to announce strong first quarter results. We continue to focus on building a top tier Florida franchise focused on relationship banking. The Company sees continued tailwinds resulting from our strategic focus on organic growth with an emphasis on non-interest bearing deposits and expanding the commercial loan segment of our loan portfolio.”

The Bank’s non-performing assets as of March 31, 2017 were $619,000 compared to $985,000 as of March 31, 2016. The Bank’s non-performing assets to total assets ratio as of March 31, 2017 was 0.06% compared to 0.19% as of March 31, 2016. In addition, the allowance for loan losses was 621% of non-performing loans at March 31, 2017.

Noninterest expenses for the first quarter 2017 totaled $6.1 million, compared to $4.5 million in the first quarter of 2016. The Company has fully integrated the Florida Bank of Commerce acquisition and has achieved its cost savings goals.

Revenue growth was $4.5 million year over year for the first quarter or 90%. This was led by net interest income for the first quarter 2017 of $7.6 million compared to $6.7 million during the fourth quarter of 2016 and $4.0 million during the first quarter of 2016. Additionally, revenue growth was supported by strong non-interest income growth of $408,000 year over year of 61%. Non-interest income growth was attributable to increases in deposit fees, SBA lending and wealth management revenue.

Stockholders’ equity increased to $114.1 million at March 31, 2017 compared to $112.1 million at December 31, 2016.

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 18 branch locations stretching from the East Coast to the West Coast of Florida in Brevard, Hillsborough, Manatee, Orange, Osceola, Pasco, Polk, Sarasota, and Seminole Counties. 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.

Sunshine Bancorp, Inc.
Consolidated Balance Sheet

(Dollars in thousands, except per share information)

   
As of March 31, As of December 31,
  2017     2016  
(Unaudited)
Assets
Cash and due from banks $ 29,860 $ 16,562
Interest-earning deposits in financial institutions 30,628 21,386
Federal funds sold   10,430     12,325  
Cash and cash equivalents 70,918 50,273
Time deposits with banks 2,794 2,794
Securities available for sale 109,943 109,668
Loans held for sale 865 443
Loans, net of allowance for loan losses of $3,643 and $3,274 689,656 683,784
Premises and equipment, net 25,627 25,920
Federal Home Loan Bank stock, at cost 2,750 3,478
Cash surrender value of bank-owned life insurance 22,618 22,462
Deferred income tax asset 5,665 6,660
Goodwill and other intangibles 22,069 22,308
Accrued interest receivable 1,869 2,077
Other real estate owned 32 32
Other assets   1,572     1,536  
Total assets $ 956,378   $ 931,435  
 
Liabilities and Stockholders’ Equity
Liabilities:
Noninterest-bearing demand accounts $ 243,313 $ 217,418
Interest-bearing demand and savings accounts 377,045 354,327
Time deposits   150,810     158,204  
Total deposits 771,168 729,949
Other borrowings 54,179 71,867
Subordinated Notes 11,000 11,000
Other liabilities   5,977     6,518  
Total liabilities 842,324 819,334
 
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 8,038,905 at March 31, 2017 and 7,986,074 at December 31, 2016 80 80
Additional paid in capital 94,478 94,302
Retained income 23,433 21,803
Unearned employee stock ownership plan (“ESOP”) shares (3,047 ) (3,047 )
Accumulated other comprehensive income   (890 )   (1,037 )
Total stockholders’ equity   114,054     112,101  
Total liabilities and stockholders’ equity $ 956,378   $ 931,435  
 
Sunshine Bancorp, Inc.
Consolidated Statement of Operations

(Dollars in thousands, except per share information)

 
              Three months Ended
March 31,
2017   2016
Interest income: (Unaudited)
Loans $ 7,930 $ 4,055
Securities 427 221
Other   131   78
Total interest income   8,488   4,354
Interest Expense:
Deposits 597 315
Borrowed funds   254   25
Total interest expense   851   340
Net interest income 7,637 4,014
Provision for loan losses   -   -
Net interest income after provision for loan losses   7,637   4,014
Noninterest income:
Fees and service charges on deposit accounts 465 326
Gain on sale of other real estate owned - -
Mortgage Broker Fees 59 47
Gain on sale of securities - 26
Income from bank-owned life insurance 182 95
Other   369   173
Total noninterest income   1,075   667
Noninterest expenses:
Salaries and employee benefits 3,649 2,576
Occupancy and equipment 724 576
Data and item processing services 540 341
Professional fees 213 171
Advertising and promotion 6 45
Stationery and supplies 47 46
FDIC Deposit insurance 75 102
Other   859   621
Total noninterest expenses   6,113   4,478
Income before income taxes 2,599 203
Income tax (benefit) expense   969   49
Net income $ 1,630 $ 154
 
Basic earnings per share $ 0.21 $ 0.04
Diluted earnings per share $ 0.21 $ 0.04
 
  Three Month Periods Ended *
3/31/2017   12/31/2016   9/30/2016   6/30/2016   3/31/2016
Operating Highlights (Unaudited)
Net Income $ 1,630 $ (514) $ 244 $ 73 $ 154
Net interest income 7,637 6,720 4,306 3,873 4,014
Provision for loan losses - - - 350 -
Non-Interest Income 1,075 701 669 1,149 667
Non-Interest Expense 6,113 7,972 4,602 4,563 4,478
 
Financial Condition Data:
Total Assets $ 956,378 $ 931,435 $ 563,992 $ 514,729 $ 523,067
Loans, Net 689,656 683,784 395,994 371,538 337,784
Deposits:
Noninterest-bearing demand accounts 243,313 217,418 85,304 92,342 101,490
Interest-bearing demand and savings accounts 377,045 354,327 234,697 199,121 207,410
Time deposits 150,810 158,204 118,766 103,852 106,300
Total Deposits 771,168 729,949 438,767 395,315 415,200
 
Selected Ratios
Net interest margin 3.63% 3.78% 3.69% 3.53% 3.64%
Annualized return on average assets 0.8% (0.3%) 0.2% 0.1% 0.1%
Annualized return on average equity 5.8% (2.1%) 1.4% 0.4% 0.9%
 
Capital Ratios **
Total Capital Ratio 12.9% 12.7% 15.8% 15.4% 15.6%
Tier 1 capital ratio 12.4% 12.2% 15.2% 14.7% 14.9%
Common equity tier 1 capital ratio 12.4% 12.2% 15.2% 14.7% 14.9%
Leverage ratio 10.1% 10.0% 13.6% 12.1% 11.3%
 
 
Asset Quality Ratios
Non-performing assets $ 619 $ 323 $ 988 $ 1,324 $ 985
Non-performing assets to total assets 0.06% 0.03% 0.18% 0.26% 0.19%
Non-performing loans to total loans 0.08% 0.04% 0.24% 0.35% 0.28%
Allowance for loan losses(AFLL) $ 3,643 $ 3,274 $ 2,846 $ 2,895 $ 2,532
AFLL to total loans 0.53% 0.47% 0.71% 0.77% 0.74%
AFLL to non-performing loans 620.6% 1125.1% 297.7% 224.1% 265.7%
 
* Dollars in thousands
** Capital Ratios for Sunshine Bank only

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