Grandpoint Capital Reports First Quarter 2016 Earnings

LOS ANGELES--()--Grandpoint Capital, Inc., the holding company for Grandpoint Bank, reported net income of $8.1 million for the quarter ended March 31, 2016. In addition, the board of directors declared its second cash dividend payment of $0.12 per share, payable on or about May 24, 2016, to shareholders of record on Friday, May 6, 2016.

“Grandpoint Capital continued its strong performance during the first quarter,” said Don M. Griffith, Chairman and CEO of Grandpoint Capital, Inc., and Grandpoint Bank. “Our key performance metrics continue to demonstrate the Bank’s long-term strength. At March 31, 2016, our return on average assets was 1.03%, and our return on average tangible equity was 10.9%. We reported earnings per share (basic) of $0.25 and achieved tangible book value per share of $9.23 at the end of the first quarter. Our efficiency ratio of 53.8% reflects our success in managing expenses, as we continue to grow Grandpoint Bank.”

Total deposits at quarter-end were $2.5 billion and loans totaled $2.3 billion. Grandpoint’s capital ratios remain far in excess of the regulatory minimums, with a Leverage Ratio of 10.0% and Total Risk-Based Capital Ratio of 13.7% at March 31, 2016.

In March 2016, Grandpoint Bank received a superior 5-star rating from independent rating and research firm BauerFinancial for the eleventh consecutive quarter. The latest rating was based on December 31, 2015 financial data. The 5-star rating, for strength, stability and soundness, is only awarded to the nation’s strongest banks.

Grandpoint Capital, Inc., and Grandpoint Bank are headquartered in Los Angeles, Calif. Grandpoint Bank operates in southern California, Arizona and Vancouver, Wash.

More information about Grandpoint is available at www.grandpointbank.com.

                             
Grandpoint Capital, Inc. and Subsidiaries
Consolidated Balance Sheets - unaudited
Dollars in $1,000's
 
December 31, March 31,
2010 2011 2012 2013 2014 2015 2016
 
Cash and due from banks $ 27,791 $ 22,324 $ 43,714 $ 41,177 $ 37,688 $ 25,113 $ 26,437
Interest-bearing deposits in banks   33,604     127,803     291,545     171,408     314,005     171,625     161,033  
Cash and Cash Equivalents 61,395 150,127 335,259 212,585 351,693 196,738 187,470
Investment Securities 97,399 208,939 318,501 230,591 266,479 573,260 637,518
Loans:
Construction 18,327 20,324 54,315 79,588 110,286 130,801 146,882
Single family residential 32,753 86,257 193,913 248,727 281,678 269,823 262,276
Multifamily loans 26,097 60,718 135,966 215,956 397,712 599,470 623,110
Commercial real estate 248,343 429,224 738,540 777,875 814,430 862,014 849,310
Commercial and industrial 83,847 136,492 295,199 371,341 375,607 412,051 381,123
Consumer   3,673     6,226     21,984     23,289     12,846     9,138     9,470  
Total Loans 413,040 739,241 1,439,917 1,716,776 1,992,559 2,283,297 2,272,171
Deferred loan fees, costs and discounts (13,861 ) (15,580 ) (25,373 ) (18,410 ) (4,543 ) 3,550 3,854
Allowance for loan losses   (1,050 )   (5,722 )   (8,867 )   (12,087 )   (14,018 )   (17,245 )   (17,514 )
Net Loans 398,129 717,939 1,405,677 1,686,279 1,973,998 2,269,602 2,258,511
Goodwill 17,923 37,863 51,432 53,101 53,323 53,323 53,323
Core deposit and other intangibles 2,724 6,857 11,822 12,765 11,063 9,209 8,780
Deferred Tax Assets 4,056 12,011 30,997 30,981 30,206 24,749 24,645
Other assets   19,005     24,959     50,195     48,987     79,210     70,107     71,830  
Total Assets $ 600,631   $ 1,158,695   $ 2,203,883   $ 2,275,289   $ 2,765,972   $ 3,196,988   $ 3,242,077  
Deposits:
Demand deposits $ 136,024 $ 327,638 $ 736,831 $ 764,936 $ 792,896 $ 852,263 $ 851,613
NOW accounts 22,651 57,302 88,994 132,743 136,003 139,660 135,030
Money market accounts 246,043 473,107 723,125 689,318 1,029,519 1,165,748 1,137,939
Savings accounts 4,703 9,403 20,587 36,914 35,505 39,979 40,433
Time deposits   78,353     112,407     298,226     313,788     411,908     348,068     372,354  
Total Deposits 487,774 979,857 1,867,763 1,937,699 2,405,831 2,545,718 2,537,369
Other liabilities 10,400 14,084 18,596 15,496 27,233 10,594 8,454
Other Borrowings - 3,000 10,500 11,000 - 275,000 325,000
Subordinated debenture payable 5,155 5,155 5,155 5,155 5,155 5,155 5,155
Shareholders' Equity:
Common stock, par value 116 181 323 324 324 329 329
Additional Paid-In Capital 108,628 171,236 306,060 308,882 310,860 316,623 317,340
Unrealized gain (loss) on investment securities (52 ) 150 1,410 (3,756 ) (1,090 ) (3,834 ) (3,110 )
Retained earnings (deficit)   (16,073 )   (21,233 )   (5,924 )   489     17,659     47,403     51,540  
Total Grandpoint Capital Shareholders' Equity 92,619 150,334 301,869 305,939 327,753 360,521 366,099
Noncontrolling interest   4,683     6,265     -     -     -     -     -  
Total Shareholders' Equity   97,302     156,599     301,869     305,939     327,753     360,521     366,099  
Total Liabilities and Shareholders' Equity $ 600,631   $ 1,158,695   $ 2,203,883   $ 2,275,289   $ 2,765,972   $ 3,196,988   $ 3,242,077  
 
Total loans to deposits 84.7 % 75.4 % 77.1 % 88.6 % 82.8 % 89.7 % 89.5 %
Tier 1 Capital to average assets 33.4 % 9.5 % 11.4 % 10.5 % 10.6 % 9.9 % 10.0 %
 
Tangible book value $ 76,655 $ 107,764 $ 238,615 $ 240,073 $ 263,367 $ 297,989 $ 303,996
Shares outstanding 11,660,098 18,183,867 32,353,019 32,424,261 32,445,179 32,894,185 32,944,185
Book value per share $ 7.94 $ 8.27 $ 9.33 $ 9.44 $ 10.10 $ 10.96 $ 11.11
Tangible book value per share $ 6.57 $ 5.93 $ 7.38 $ 7.40 $ 8.12 $ 9.06 $ 9.23
 
 
                 
Grandpoint Capital, Inc. and Subsidiaries
Consolidated Income Statements - unaudited
Dollars in $1,000's
           
Quarter ended
Year Ended December 31, March 31,
2010 2011 2012 2013 2014 2015 2016
 
Interest Income $ 2,117 $ 44,715 $ 69,166 $ 93,618 $ 102,882 $ 114,714 $ 29,721
Interest Expense   204     4,174     4,109     4,248     4,826     5,883     1,985  
Net Interest Income 1,913 40,541 65,057 89,370 98,056 108,831 27,736
 
Provision for Loan Losses 1,050 6,046 5,494 3,799 4,317 3,732 (3 )
Noninterest Income 5,927 4,726 8,074 7,061 6,049 6,660 1,533
 
Noninterest Expense:
Salaries and Benefits 6,898 22,343 34,891 44,292 40,270 38,719 9,861
Occupancy Expenses 1,021 3,102 4,591 5,380 5,569 5,186 1,323
Furniture and Equipment Expenses 883 2,077 2,991 3,352 3,610 3,288 821
Promotion Expenses 738 1,178 1,385 1,941 1,620 1,217 277
Data Processing Expenses 307 1,264 2,020 2,580 1,862 1,908 484
Professional Services 1,292 2,826 3,820 4,263 2,406 2,709 663
M&A, Conversion and Restructuring Costs 2,346 5,984 947 10,304 3,988 - -
Office Supplies and Costs 293 787 1,284 1,481 1,755 1,422 346
Assessments and Insurance 215 1,428 1,880 2,195 2,377 2,464 659
Loan Expenses - - 1,785 1,703 3,108 1,849 449
Other Expenses   259     3,104     2,924     4,400     4,239     3,889     865  
  14,252     44,093     58,518     81,891     70,804     62,651     15,748  
 
Income before Income Taxes (7,462 ) (4,872 ) 9,119 10,741 28,984 49,108 13,524
Income Taxes   (374 )   -     (6,316 )   4,328     11,814     19,364     5,434  
 
Net Income   (7,088 )   (4,872 )   15,435     6,413   $ 17,170   $ 29,744   $ 8,090  
 
EPS - basic $ (1.19 ) $ (0.35 ) $ 0.61 $ 0.20 $ 0.53 $ 0.09 $ 0.25
Return on average assets -2.36 % -0.53 % 0.96 % 0.29 % 0.70 % 1.00 % 1.03 %
Return on average tangible equity -11.29 % -4.08 % 6.82 % 2.10 % 5.24 % 10.52 % 10.85 %
Efficiency ratio 181.79 % 97.41 % 80.02 % 84.92 % 68.01 % 54.25 % 53.80 %
 

Contacts

Grandpoint Bank
Penny Maines, 213-542-2716
pmaines@grandpointbank.com

Release Summary

Grandpoint Capital, Inc. reports first quarter 2016 earnings and announces quarterly cash dividend.

Contacts

Grandpoint Bank
Penny Maines, 213-542-2716
pmaines@grandpointbank.com