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 As of
June 30, 2017 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