Press Release
For Immediate Release
Contact:
Brent Smith
SVP, Corporate Development
(813)659-8626
Sunshine Bancorp, Inc. Reports 2nd Quarter and Year to Date Results
Plant City, FL – July 26, 2017 –
Sunshine Bancorp, Inc. (the "Company") (NASDAQ: SBCP), the holding company for Sunshine Bank (the "Bank"), has released its unaudited consolidated financial results for the second quarter and six months ended June 30, 2017.
Key Highlights from the 2nd Quarter 2017
|
-
|
Earnings of $0.23 per basic and diluted share
|
|
-
|
Total assets of $956 million
|
|
-
|
Annualized loan growth of 8%
|
|
-
|
Maintained top tier credit metrics with NPAs to Assets at 0.08%
|
The Company recognized net income of $1.8 million for the second quarter of 2017 compared to net income of $1.6 million in the first quarter 2017 and net income of $73,000 for the second quarter 2016. Net income was $3.4 million for the six months ended June 30, 2017 compared to $227,000 for the six months ended June 30, 2016.
Total assets were $955.9 million at June 30, 2017 compared to $956.4 million at March 31, 2017 and $931.4 million at December 31, 2016. Net loans increased to $703.9 million at June 30, 2017 compared to $689.7 million at March 31, 2017 and $683.8 million at December 31, 2016. The Commercial Real Estate to Total Risk Based Capital ratio at June 30, 2017 was below 265%. The Company continues to deliver on the organizational focus around relationship banking.
Total deposits were $776.1 million at June 30, 2017 compared to $771.2 million at March 31, 2017 and $729.9 million at December 31, 2016. The Company continues to maintain a low cost of funds led by strong core deposit funding. Despite a slower second quarter, deposit growth annualized year to date was 12%.
Andrew Samuel, President and CEO, commented, "We are thrilled to announce another strong quarter of financial results. We continue to focus on delivering uncompromised service to our clients and the credit for our success goes to our great employees. Our team has worked incredibly hard over the past few years to deliver on our goal of creating a dynamic community banking franchise in Central Florida."
The Bank's non-performing assets as of June 30, 2017 were $739,000 compared to $988,000 as of June 30, 2016. The Bank's non-performing assets to total assets ratio as of June 30, 2017 was 0.08% compared to 0.18% as of June 30, 2016. In addition, the allowance for loan losses was 519.1% of non-performing loans at June 30, 2017.
Net interest income for the second quarter 2017 was $8.1 million compared to $7.6 million during the first quarter of 2017 and $3.9 million during the second quarter of 2016. The net interest margin for the six months ended June 30, 2017 was 3.76% compared to 3.57% for the six months ended June 30, 2016. The net interest margin benefited from the recent increases in the short-term interest rates, a decrease in the use of borrowed funds, and an increase in loans as a percentage of interest earning assets. The average loan yield has remained stable decreasing five basis points to 4.73% for the six months ended June 30, 2017 and increasing eight basis points to 4.79% for the three months ended June 30, 2017 from the comparable prior year period. Deposit costs remained constant with the average cost of deposits at 0.30% for the six months ended June 30, 2017 and 0.30% for the six months ended June 30, 2016.
Noninterest expenses for the second quarter 2017 totaled $6.4 million compared to $6.1 million in the first quarter of 2017. Noninterest expense remained stable during the second quarter 2017 with noninterest expense to average assets of 2.7% annualized, compared to 2.6% annualized in the first quarter 2017.
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 Sheets
(Dollars in thousands)
|
As of
June 30, 2017
|
As of
December 31, 2016
|
|||||||
|
Assets
|
(Unaudited)
|
|||||||
|
Cash and due from banks
|
$
|
32,311
|
$
|
16,562
|
||||
|
Interest-earning deposits in financial institutions
|
21,264
|
21,386
|
||||||
|
Federal funds sold
|
10,039
|
12,325
|
||||||
|
Cash and cash equivalents
|
63,614
|
50,273
|
||||||
|
Time deposits with banks
|
835
|
2,794
|
||||||
|
Securities available for sale
|
106,456
|
109,668
|
||||||
|
Loans held for sale
|
844
|
443
|
||||||
|
Loans, net of allowance for loan losses of $3,670 and $3,274
|
703,863
|
683,784
|
||||||
|
Premises and equipment, net
|
25,153
|
25,920
|
||||||
|
Federal Home Loan Bank stock, at cost
|
2,452
|
3,478
|
||||||
|
Cash surrender value of bank-owned life insurance
|
22,779
|
22,462
|
||||||
|
Deferred income tax asset
|
4,573
|
6,660
|
||||||
|
Goodwill and other intangibles
|
22,155
|
22,308
|
||||||
|
Accrued interest receivable
|
2,035
|
2,077
|
||||||
|
Other real estate owned
|
32
|
32
|
||||||
|
Other assets
|
1,094
|
1,536
|
||||||
|
Total assets
|
$
|
955,885
|
$
|
931,435
|
||||
|
Liabilities and Stockholders' Equity
|
||||||||
|
Liabilities:
|
||||||||
|
Noninterest-bearing demand accounts
|
$
|
238,762
|
$
|
217,418
|
||||
|
Interest-bearing demand and savings accounts
|
378,420
|
354,327
|
||||||
|
Time deposits
|
158,871
|
158,204
|
||||||
|
Total deposits
|
776,053
|
729,949
|
||||||
|
Other borrowings
|
45,887
|
71,867
|
||||||
|
Subordinated Notes
|
11,000
|
11,000
|
||||||
|
Other liabilities
|
6,437
|
6,518
|
||||||
|
Total liabilities
|
839,377
|
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 8,021,650 at June 30, 2017 and 7,986,074 shares at December 31, 2016
|
80
|
80
|
||||||
|
Additional paid in capital
|
94,902
|
94,302
|
||||||
|
Retained income
|
25,234
|
21,803
|
||||||
|
Unearned employee stock ownership plan ("ESOP") shares
|
(3,047
|
)
|
(3,047
|
)
|
||||
|
Accumulated other comprehensive income (loss)
|
(661
|
)
|
(1,037
|
)
|
||||
|
Total stockholders' equity
|
116,508
|
112,101
|
||||||
|
Total liabilities and stockholders' equity
|
$
|
955,885
|
$
|
931,435
|
||||
SUNSHINE BANCORP, INC.
Consolidated Statements of Income (Unaudited)
(Dollars in thousands, except per share amounts)
|
Three months Ended
|
Six months Ended
|
|||||||||||||||
|
June 30,
|
June 30,
|
|||||||||||||||
|
2017
|
2016
|
2017
|
2016
|
|||||||||||||
|
Interest income:
|
||||||||||||||||
|
Loans
|
$
|
8,285
|
$
|
4,041
|
$
|
16,215
|
$
|
8,096
|
||||||||
|
Securities
|
447
|
241
|
874
|
462
|
||||||||||||
|
Other
|
99
|
43
|
230
|
121
|
||||||||||||
|
Total interest income
|
8,831
|
4,325
|
17,319
|
8,679
|
||||||||||||
|
Interest Expense:
|
||||||||||||||||
|
Deposits
|
543
|
304
|
1,140
|
619
|
||||||||||||
|
Borrowed funds
|
223
|
148
|
477
|
173
|
||||||||||||
|
Total interest expense
|
766
|
452
|
1,617
|
792
|
||||||||||||
|
Net interest income
|
8,065
|
3,873
|
15,702
|
7,887
|
||||||||||||
|
Provision for loan losses
|
—
|
350
|
—
|
350
|
||||||||||||
|
Net interest income after provision for loan losses
|
8,065
|
3,523
|
15,702
|
7,537
|
||||||||||||
|
Noninterest income:
|
||||||||||||||||
|
Fees and service charges on deposit accounts
|
543
|
312
|
1,008
|
638
|
||||||||||||
|
Mortgage Broker Fees
|
121
|
22
|
180
|
69
|
||||||||||||
|
Gain on sale of securities
|
—
|
105
|
—
|
131
|
||||||||||||
|
Gain on sale of premise
|
—
|
563
|
—
|
563
|
||||||||||||
|
Income from bank-owned life insurance
|
188
|
97
|
370
|
192
|
||||||||||||
|
Other
|
296
|
50
|
665
|
223
|
||||||||||||
|
Total noninterest income
|
1,148
|
1,149
|
2,223
|
1,816
|
||||||||||||
|
Noninterest expenses:
|
||||||||||||||||
|
Salaries and employee benefits
|
3,676
|
2,442
|
7,325
|
5,018
|
||||||||||||
|
Occupancy and equipment
|
705
|
586
|
1,429
|
1,162
|
||||||||||||
|
Data and item processing services
|
561
|
396
|
1,101
|
737
|
||||||||||||
|
Professional fees
|
254
|
248
|
467
|
419
|
||||||||||||
|
Advertising and promotion
|
8
|
22
|
14
|
67
|
||||||||||||
|
Stationery and supplies
|
58
|
55
|
105
|
101
|
||||||||||||
|
FDIC Deposit insurance
|
102
|
100
|
177
|
202
|
||||||||||||
|
Merger Related
|
—
|
95
|
—
|
95
|
||||||||||||
|
Other
|
1,074
|
619
|
1,933
|
1,240
|
||||||||||||
|
Total noninterest expenses
|
6,438
|
4,563
|
12,551
|
9,041
|
||||||||||||
|
Income before income taxes
|
2,775
|
109
|
5,374
|
312
|
||||||||||||
|
Income taxes
|
974
|
36
|
1,943
|
85
|
||||||||||||
|
Net income
|
$
|
1,801
|
$
|
73
|
$
|
3,431
|
$
|
227
|
||||||||
|
Basic earnings per share
|
$
|
0.23
|
$
|
0.01
|
$
|
0.44
|
$
|
0.05
|
||||||||
|
Diluted earnings per share
|
$
|
0.23
|
$
|
0.01
|
$
|
0.43
|
$
|
0.05
|
||||||||
|
Three Month Periods Ended *
|
||||||||||||||||||||
|
6/30/2017
|
3/31/2017
|
12/31/2016
|
9/30/2016
|
6/30/2016
|
||||||||||||||||
|
Operating Highlights
|
(Unaudited)
|
|||||||||||||||||||
|
Net Income
|
$
|
1,801
|
$
|
1,630
|
$
|
(514
|
)
|
$
|
244
|
$
|
73
|
|||||||||
|
Net interest income
|
$
|
8,065
|
$
|
7,637
|
$
|
6,720
|
$
|
4,306
|
$
|
3,873
|
||||||||||
|
Provision for loan losses
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
350
|
||||||||||
|
Non-Interest Income
|
$
|
1,148
|
$
|
1,075
|
$
|
701
|
$
|
669
|
$
|
1,149
|
||||||||||
|
Non-Interest Expense
|
$
|
6,438
|
$
|
6,113
|
$
|
7,972
|
$
|
4,602
|
$
|
4,563
|
||||||||||
|
Financial Condition Data:
|
||||||||||||||||||||
|
Total Assets
|
$
|
955,885
|
$
|
956,378
|
$
|
931,435
|
$
|
563,992
|
$
|
514,729
|
||||||||||
|
Loans, Net
|
$
|
703,863
|
$
|
689,656
|
$
|
683,784
|
$
|
395,994
|
$
|
371,538
|
||||||||||
|
Deposits:
|
||||||||||||||||||||
|
Noninterest-bearing demand accounts
|
$
|
238,762
|
$
|
243,313
|
$
|
217,418
|
$
|
85,304
|
$
|
92,342
|
||||||||||
|
Interest-bearing demand and savings accounts
|
378,420
|
377,045
|
354,327
|
234,697
|
199,121
|
|||||||||||||||
|
Time deposits
|
158,871
|
150,810
|
158,204
|
118,766
|
103,852
|
|||||||||||||||
|
Total Deposits
|
$
|
776,053
|
$
|
771,168
|
$
|
729,949
|
$
|
438,767
|
$
|
395,315
|
||||||||||
|
Selected Ratios
|
||||||||||||||||||||
|
Net interest margin
|
3.86
|
%
|
3.65
|
%
|
3.78
|
%
|
3.53
|
%
|
3.53
|
%
|
||||||||||
|
Annualized return on average assets
|
0.8
|
%
|
0.8
|
%
|
(0.3
|
%)
|
0.2
|
%
|
0.1
|
%
|
||||||||||
|
Annualized return on average equity
|
6.3
|
%
|
5.8
|
%
|
(2.1
|
%)
|
1.4
|
%
|
0.4
|
%
|
||||||||||
|
Capital Ratios **
|
||||||||||||||||||||
|
Total Capital Ratio
|
13.4
|
%
|
12.9
|
%
|
12.7
|
%
|
15.8
|
%
|
15.4
|
%
|
||||||||||
|
Tier 1 capital ratio
|
12.9
|
%
|
12.4
|
%
|
12.2
|
%
|
15.2
|
%
|
14.7
|
%
|
||||||||||
|
Common equity tier 1 capital ratio
|
12.9
|
%
|
12.4
|
%
|
12.2
|
%
|
15.2
|
%
|
14.7
|
%
|
||||||||||
|
Leverage ratio
|
10.6
|
%
|
10.1
|
%
|
10.0
|
%
|
13.6
|
%
|
12.1
|
%
|
||||||||||
|
Asset Quality Ratios
|
||||||||||||||||||||
|
Non-performing assets
|
$
|
739
|
$
|
619
|
$
|
323
|
$
|
988
|
$
|
1,324
|
||||||||||
|
Non-performing assets to total assets
|
0.08
|
%
|
0.06
|
%
|
0.03
|
%
|
0.18
|
%
|
0.26
|
%
|
||||||||||
|
Non-performing loans to total loans
|
0.10
|
%
|
0.08
|
%
|
0.04
|
%
|
0.24
|
%
|
0.35
|
%
|
||||||||||
|
Allowance for loan losses(AFLL)
|
$
|
3,670
|
$
|
3,643
|
$
|
3,274
|
$
|
2,846
|
$
|
2,895
|
||||||||||
|
AFLL to total loans
|
0.52
|
%
|
0.53
|
%
|
0.47
|
%
|
0.71
|
%
|
0.77
|
%
|
||||||||||
|
AFLL to non-performing loans
|
519.1
|
%
|
620.6
|
%
|
1125.1
|
%
|
297.7
|
%
|
224.1
|
%
|
||||||||||
|
* Dollars in thousands
|
||||||||||||||||||||
|
** Capital Ratios for Sunshine Bank only
|
||||||||||||||||||||