Press Release

Sunshine Bancorp, Inc. Reports 3rd Quarter 2017 and Year to Date Results

Company Release - 10/26/2017 4:40 PM ET

PLANT CITY, Fla.--(BUSINESS WIRE)-- Sunshine Bancorp, Inc. (the “Company”) (NASDAQ: SBCP), the holding company for Sunshine Bank (the “Bank”), has released its unaudited consolidated financial results for the third quarter and nine months ended September 30, 2017.

Key Highlights from the 3rd Quarter 2017

  • Earnings of $0.20 per basic and diluted share
  • Total assets of $943.6 million
  • Maintained top tier credit metrics with NPAs to Assets at 0.12%

The Company recognized net income of $1.6 million for the third quarter of 2017 compared to net income of $1.8 million for the second quarter 2017 and net income of $244,000 for the third quarter 2016. Net income was $5.0 million for the nine months ended September 30, 2017 compared to $471,000 for the nine months ended September 30, 2016.

Total assets were $943.6 million at September 30, 2017 compared to $955.9 million at June 30, 2017 and $931.4 million at December 31, 2016. Net loans decreased to $701.4 million at September 30, 2017 compared to $703.9 million at June 30, 2017, but increased from $683.8 million at December 31, 2016.

Total deposits were $749.1 million at September 30, 2017 compared to $776.1 million at June 30, 2017 and $729.9 million at December 31, 2016.

Andrew Samuel, President and CEO, commented, “Our team has worked incredibly hard over the past few years to deliver on our goal of becoming a strong community bank in Central Florida. We are excited with the announced merger with CenterState and feel the combination will create a partnership that allows for long term success for our customers and communities.”

The Bank’s non-performing assets as of September 30, 2017 were $1.1 million compared to $988,000 as of September 30, 2016. The Bank’s non-performing assets to total assets ratio as of September 30, 2017 was 0.12% compared to 0.18% as of September 30, 2016.

Net interest income for the third quarter 2017 was $8.2 million compared to $8.1 million during the second quarter of 2017 and $4.3 million during the third quarter of 2016.

Noninterest expenses for the third quarter 2017, including $295,000 in merger related expenses, totaled $6.7 million compared to $6.4 million in the second quarter of 2017 and $4.6 million during the third quarter of 2016, which included $207,000 in merger related expenses.

On October 25, 2017, the Office of the Comptroller of the Currency approved the merger of the Bank with and into CenterState Bank, N.A., the wholly owned subsidiary of CenterState Bank Corporation ("CenterState"). In addition, CenterState had previously obtained a waiver from the Federal Reserve Bank of Atlanta from the requirement to file an application under the Bank Holding Company Act for CenterState to acquire the Company. Pending the approval by the stockholders of the Company of the merger agreement, as well as satisfaction of other customary closing conditions described in the merger agreement, the Company expects that the merger will be completed in early January 2018. The stockholder meeting for the pending merger with CenterState is scheduled for November 17, 2017 at 9:00 a.m. in Plant City, Florida.

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, delays in completing the pending merger, 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.

Additional Information About the Merger and Where to Find It

Investors are urged to review carefully and consider all public filings by CenterState and the Company with the SEC, including but not limited to their Annual Reports on Form 10-K, their proxy statements, their Quarterly Reports on Form 10-Q, and their Current Reports on Form 8-K. The documents filed with the SEC may be obtained free of charge at the SEC’s website at www.sec.gov. The documents filed by CenterState with the SEC may also be obtained free of charge at CenterState’s website at www.centerstatebanks.com or by requesting them in writing to CenterState Bank Corporation, Attention: Secretary, 1101 1st Street South, Winter Haven, FL 33880. The documents filed by the Company with the SEC may also be obtained free of charge at the Company’s website at www.mysunshinebank.com or by requesting them in writing to Sunshine Bancorp, Inc., 102 West Baker Street, Plant City, Florida 33563, Attention: Secretary.

In connection with the merger, CenterState has filed a registration statement on Form S-4 with the SEC, which includes a proxy statement of the Company and a prospectus of CenterState. The definitive proxy statement/prospectus was sent to the stockholders of the Company on October 17, 2017 seeking the required stockholder approval.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. Before making any voting or investment decision, stockholders of the Company are urged to read carefully the entire registration statement and proxy statement/prospectus, including any amendments thereto, because they contain important information about the proposed transaction. Free copies of these documents may be obtained as described above.

The Company and certain of its directors and executive officers may be deemed to be participants in the solicitation of proxies from the stockholders of the Company in connection with the merger. Information about the directors and executive officers of the Company and their ownership of the Company common stock is set forth in the proxy statement for the Company’s 2017 annual meeting of stockholders, as filed with the SEC on Schedule 14A on March 30, 2017. Additional information regarding the interests of those participants and other persons who may be deemed participants in the transaction may be obtained by reading the proxy statement/prospectus regarding the proposed merger.

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, Florida. 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, except per share amounts)

As of
September 30, 2017

As of
December 31, 2016

Assets

(Unaudited)

Cash and due from banks $ 32,656 $ 16,562
Interest-earning deposits in financial institutions 10,328 21,386

Federal funds sold

  19,020     1 2,325  
Cash and cash equivalents 62,004 50,273
Time deposits with banks 590 2,794
Securities available for sale 99,104 109,668
Loans held for sale 533 443
Loans, net of allowance for loan losses of $3,698 and $3,274 701,406 683,784
Premises and equipment, net 25,180 25,920
Federal Home Loan Bank stock, at cost 2,877 3,478
Cash surrender value of bank-owned life insurance 22,946 22,462
Deferred income tax asset 4,641 6,660
Goodwill and other intangibles 22,056 22,308
Accrued interest receivable 2,080 2,077
Other assets   216     1,568  
Total assets $

943,633

  $ 931,435  
 
Liabilities and Stockholders’ Equity
Liabilities:
Noninterest-bearing demand accounts $ 234,351 $ 217,418
Interest-bearing demand and savings accounts 371,121 354,327
Time deposits   143,578     158,204  
Total deposits 749,050 729,949
Other borrowings 56,884 71,867
Subordinated Notes 11,000 11,000
Other liabilities   8,425     6,518  
Total liabilities   825,359     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 8,026,354 at September 30, 2017 and 7,986,074 shares at December 31, 2016 80 80
Additional paid in capital 95,086 94,302
Retained income 26,810 21,803
Unearned employee stock ownership plan (“ESOP”) shares (3,047 ) (3,047 )
Accumulated other comprehensive loss   (655 )   (1,037 )
Total stockholders’ equity   118,274     112,101  
Total liabilities and stockholders’ equity $ 943,633   $ 931,435  
 
           
SUNSHINE BANCORP, INC.

Consolidated Statements of Income (Unaudited)

(Dollars in thousands, except per share amounts)

 
Three months Ended Nine months Ended
September 30, September 30,
2017   2016 2017   2016
Interest income:
Loans $8,602 $4,582 $ 24,817 $12,678
Securities 446 222 1,320 684
Other 127 43 357 164
Total interest income 9,175 4,847 26,494 13,526
Interest Expense:
Deposits 665 349 1,785 962
Borrowed funds 262 192 759 372
Total interest expense 927 541 2,544 1,334
Net interest income 8,248 4,306 23,950 12,192
Provision for loan losses 350
Net interest income after provision for loan losses 8,248 4,306 23,950 11,842
Noninterest income:
Fees and service charges on deposit accounts 579 314 1,587 952
Mortgage Broker Fees 65 42 245 112
Gain on sale of securities 77 208
Gain on sale of premise 563
Income from bank-owned life insurance 195 97 565 289
Other 97 139 762 361
Total noninterest income 936 669 3,159 2,485
Noninterest expenses:
Salaries and employee benefits 3,876 2,423 11,201 7,440
Occupancy and equipment 691 544 2,120 1,706
Data and item processing services 649 440 1,750 1,177
Professional fees 161 246 628 665
Advertising and promotion 9 13 23 80
Stationery and supplies 18 64 123 165
FDIC Deposit insurance 68 96 245 298
Merger Related 295 207 295 302
Other 909 569 2,842 1,809
Total noninterest expenses 6,676 4,602 19,227 13,642
Income before income taxes 2,508 373 7,882 685
Income taxes 932 129 2,875 214

Net income

$1,576 $244 $5,007 $471
 
Basic earnings per share $0.20 $0.05 $ 0.65 $ 0.09
Diluted earnings per share $0.20 $0.05 $ 0.63 $ 0.09
 
 
Three Month Periods Ended *
  9/30/2017       6/30/2017       3/31/2017       12/31/2016       9/30/2016  
Operating Highlights (Unaudited)
Net Income (loss) $ 1,576 $ 1,801 $ 1,630 $ (514 ) $ 244
Net interest income $ 8,248 $ 8,065 $ 7,637 $ 6,720 $ 4,306
Provision for loan losses $ $ $ $ $
Non-Interest Income $ 936 $ 1,148 $ 1,075 $ 701 $ 669
Non-Interest Expense $ 6,676 $ 6,438 $ 6,113 $ 7,972 $ 4,602
 
Financial Condition Data:
Total Assets $ 943,633 $ 955,885 $ 956,378 $ 931,435 $ 563,992
Loans, Net $ 701,406 $ 703,863 $ 689,656 $ 683,784 $ 395,994
Deposits:
Noninterest-bearing demand accounts $ 234,351 $ 238,762 $ 243,313 $ 217,418 $ 85,304
Interest-bearing demand and savings accounts $ 371,121 378,420 377,045 354,327 234,697
Time deposits $ 143,578     158,871     150,810     158,204     118,766  
Total Deposits $ 749,050 $ 776,053 $ 771,168 $ 729,949 $ 438,767
 
Selected Ratios
Net interest margin 3.92 % 3.86 % 3.65 % 3.78 % 3.53 %
Annualized return on average assets 0.7 % 0.8 % 0.8 % (0.3 %) 0.2 %
Annualized return on average equity 5.4 % 6.3 % 5.8 % (2.1 %) 1.4 %
 
Capital Ratios **
Total Capital Ratio 13.1 % 13.4 % 12.9 % 12.7 % 15.8 %
Tier 1 capital ratio 12.6 % 12.9 % 12.4 % 12.2 % 15.2 %
Common equity tier 1 capital ratio 12.6 % 12.9 % 12.4 % 12.2 % 15.2 %
Leverage ratio 10.4 % 10.6 % 10.1 % 10.0 % 13.6 %
 
 

Asset Quality Ratios

Non-performing assets $ 1,107 $ 739 $ 619 $ 323 $ 988
Non-performing assets to total assets 0.12 % 0.08 % 0.06 % 0.03 % 0.18 %
Non-performing loans to total loans 0.16 % 0.10 % 0.08 % 0.04 % 0.24 %
Allowance for loan losses(AFLL) $ 3,698 $ 3,670 $ 3,643 $ 3,274 $ 2,846
AFLL to total loans 0.52 % 0.52 % 0.53 % 0.47 % 0.71 %
AFLL to non-performing loans 334.1 % 519.1 % 620.6 % 1125.1 % 297.7 %
 
* Dollars in thousands
** Capital Ratios for Sunshine Bank only
 

Sunshine Bancorp, Inc.
Brent Smith, 813-659-8626
SVP, Corporate Development

Source: Sunshine Bancorp, Inc.

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