LOS ANGELES--(BUSINESS WIRE)--Grandpoint Capital, Inc., the holding company for Grandpoint Bank and its divisions, Bank of Tucson, Regents Bank and The Biltmore Bank of Arizona, reported net income of $8.2 million and total assets of $3.4 billion for the quarter ended March 31, 2017. In addition, the board of directors declared its sixth consecutive quarterly cash dividend. In recognition of the company’s continued strong performance, the board increased the quarterly cash dividend from $0.12 to $0.15 per share, payable on or about May 17, 2017, to shareholders of record as of May 3, 2017.
“Our financial performance in the first quarter of 2017 continued to demonstrate the sustained financial strength of Grandpoint Capital,” said Don M. Griffith, Chairman and CEO of Grandpoint Capital, Inc., and Grandpoint Bank. “We achieved a return on average assets of 1.02% and our return on average tangible equity was 10.25% at the end of the first quarter. Our efficiency ratio of 53.75% reflects our success in carefully managing expenses as we continue to grow Grandpoint Bank. At March 31, 2017, we reported basic earnings per share of $0.25, and we achieved tangible book value per share of $9.91.”
At March 31, 2017, deposits totaled $2.6 billion, with demand deposits increasing 11.3% to $947.9 million from $851.6 million in the prior year quarter. Total loans were $2.5 billion, an increase of 8.6% over the first quarter 2016, and asset quality remained strong as the Bank continued to maintain a prudent and disciplined risk strategy. Grandpoint Bank’s capital ratios remain far in excess of the regulatory minimums, with a Leverage Ratio of 10.2% and Total Risk-Based Capital Ratio of 12.2% at March 31, 2017.
In March 2017, Grandpoint Bank received a superior 5-star rating from independent rating and research firm BauerFinancial for the 15th consecutive quarter. The latest rating was based on December 31, 2016, 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 and its divisions operate 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 | |||||||||||||||||||||||||||||||||||||
Dollars in $1,000's | |||||||||||||||||||||||||||||||||||||
June 30, | December 31, | March 31, | |||||||||||||||||||||||||||||||||||
2010 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | |||||||||||||||||||||||||||||
Cash and due from banks | $ | 3,501 | $ | 27,791 | $ | 22,324 | $ | 43,714 | $ | 41,177 | $ | 37,688 | $ | 25,113 | $ | 28,919 | $ | 33,524 | |||||||||||||||||||
Interest-bearing deposits in banks | 72,825 | 33,604 | 127,803 | 291,545 | 171,408 | 314,005 | 171,625 | 213,365 | 210,229 | ||||||||||||||||||||||||||||
Cash and Cash Equivalents | 76,326 | 61,395 | 150,127 | 335,259 | 212,585 | 351,693 | 196,738 |
242,284 |
243,753 | ||||||||||||||||||||||||||||
Investment Securities | 3,284 | 97,399 | 208,939 | 318,501 | 230,591 | 266,479 | 573,260 | 579,275 | 508,436 | ||||||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||||||
Construction | 481 | 18,327 | 20,324 | 54,315 | 79,588 | 110,286 | 130,801 | 194,471 | 176,448 | ||||||||||||||||||||||||||||
Single family residential | - | 32,753 | 86,257 | 193,913 | 248,727 | 281,678 | 269,823 | 220,519 | 215,255 | ||||||||||||||||||||||||||||
Multifamily loans | 2,513 | 26,097 | 60,718 | 135,966 | 215,956 | 397,712 | 599,470 | 715,786 | 794,693 | ||||||||||||||||||||||||||||
Commercial real estate | 7,792 | 248,343 | 429,224 | 738,540 | 777,875 | 814,430 | 862,014 | 905,534 | 933,237 | ||||||||||||||||||||||||||||
Commercial and industrial | 2,005 | 83,847 | 136,492 | 295,199 | 371,341 | 375,607 | 412,051 | 322,419 | 339,695 | ||||||||||||||||||||||||||||
Consumer | - | 3,673 | 6,226 | 21,984 | 23,289 | 12,846 | 9,138 | 7,876 | 7,852 | ||||||||||||||||||||||||||||
Total Loans | 12,791 | 413,040 | 739,241 | 1,439,917 | 1,716,776 | 1,992,559 | 2,283,297 | 2,366,605 | 2,467,180 | ||||||||||||||||||||||||||||
Deferred loan fees, costs and discounts | (137 | ) | (13,861 | ) | (15,580 | ) | (25,373 | ) | (18,410 | ) | (4,543 | ) | 3,550 | 3,199 | 2,607 | ||||||||||||||||||||||
Allowance for loan losses | - | (1,050 | ) | (5,722 | ) | (8,867 | ) | (12,087 | ) | (14,018 | ) | (17,245 | ) | (18,552 | ) | (18,872 | ) | ||||||||||||||||||||
Net Loans | 12,654 | 398,129 | 717,939 | 1,405,677 | 1,686,279 | 1,973,998 | 2,269,602 | 2,351,252 | 2,450,915 | ||||||||||||||||||||||||||||
Goodwill | 2,563 | 17,923 | 37,863 | 51,432 | 53,101 | 53,323 | 53,323 | 53,323 | 53,323 | ||||||||||||||||||||||||||||
Core deposit and other intangibles | 133 | 2,724 | 6,857 | 11,822 | 12,765 | 11,063 | 9,209 | 7,493 | 7,083 | ||||||||||||||||||||||||||||
Deferred Tax Assets | - | 4,056 | 12,011 | 30,997 | 30,981 | 30,206 | 24,749 | 23,818 | 23,523 | ||||||||||||||||||||||||||||
Other assets | 2,981 | 19,005 | 24,959 | 50,195 | 48,987 | 79,210 | 70,107 | 69,491 | 69,233 | ||||||||||||||||||||||||||||
Total Assets | $ | 97,941 | $ | 600,631 | $ | 1,158,695 | $ | 2,203,883 | $ | 2,275,289 | $ | 2,765,972 | $ | 3,196,988 | $ | 3,326,936 | $ | 3,356,266 | |||||||||||||||||||
Deposits: | |||||||||||||||||||||||||||||||||||||
Demand deposits | $ | 3,664 | $ | 136,024 | $ | 327,638 | $ | 736,831 | $ | 764,936 | $ | 792,896 | $ | 852,263 | $ | 926,594 | $ | 947,930 | |||||||||||||||||||
NOW accounts | 547 | 22,651 | 57,302 | 88,994 | 132,743 | 136,003 | 139,660 | 148,071 | 135,702 | ||||||||||||||||||||||||||||
Money market accounts | 7,984 | 246,043 | 473,107 | 723,125 | 689,318 | 1,029,519 | 1,165,748 | 1,106,229 | 1,136,187 | ||||||||||||||||||||||||||||
Savings accounts | 1,353 | 4,703 | 9,403 | 20,587 | 36,914 | 35,505 | 39,979 | 47,426 | 45,414 | ||||||||||||||||||||||||||||
Time deposits | 5,618 | 78,353 | 112,407 | 298,226 | 313,788 | 411,908 | 348,068 | 347,775 | 359,136 | ||||||||||||||||||||||||||||
Total Deposits | 19,166 | 487,774 | 979,857 | 1,867,763 | 1,937,699 | 2,405,831 | 2,545,718 | 2,576,095 | 2,624,369 | ||||||||||||||||||||||||||||
Other liabilities | 2,840 | 10,400 | 14,084 | 18,596 | 15,496 | 27,233 | 10,594 | 12,696 | 13,912 | ||||||||||||||||||||||||||||
Other Borrowings | - | - | 3,000 | 10,500 | 11,000 | - | 275,000 | 350,000 | 325,000 | ||||||||||||||||||||||||||||
Subordinated debenture payable | - | 5,155 | 5,155 | 5,155 | 5,155 | 5,155 | 5,155 | 5,155 | 5,155 | ||||||||||||||||||||||||||||
Shareholders' Equity: | |||||||||||||||||||||||||||||||||||||
Common stock, par value | 95 | 116 | 181 | 323 | 324 | 324 | 329 | 330 | 330 | ||||||||||||||||||||||||||||
Additional Paid-In Capital | 88,729 | 108,628 | 171,236 | 306,060 | 308,882 | 310,860 | 316,623 | 318,904 | 319,108 | ||||||||||||||||||||||||||||
Unrealized gain (loss) on investment securities | 23 | (52 | ) | 150 | 1,410 | (3,756 | ) | (1,090 | ) | (3,834 | ) | (1,009 | ) | (583 | ) | ||||||||||||||||||||||
Retained earnings (deficit) | (12,912 | ) | (16,073 | ) | (21,233 | ) | (5,924 | ) | 489 | 17,659 | 47,403 | 64,765 | 68,975 | ||||||||||||||||||||||||
Total Grandpoint Capital Shareholders' Equity | 75,935 | 92,619 | 150,334 | 301,869 | 305,939 | 327,753 | 360,521 | 382,990 | 387,830 | ||||||||||||||||||||||||||||
Noncontrolling interest | - | 4,683 | 6,265 | - | - | - | - | - | - | ||||||||||||||||||||||||||||
Total Shareholders' Equity | 75,935 | 97,302 | 156,599 | 301,869 | 305,939 | 327,753 | 360,521 | 382,990 | 387,830 | ||||||||||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 97,941 | $ | 600,631 | $ | 1,158,695 | $ | 2,203,883 | $ | 2,275,289 | $ | 2,765,972 | $ | 3,196,988 | $ | 3,326,936 | $ | 3,356,266 | |||||||||||||||||||
Tangible book value | $ | 73,239 | $ | 76,655 | $ | 107,764 | $ | 238,615 | $ | 240,073 | $ | 263,367 | $ | 297,989 | $ | 322,174 | $ | 327,424 | |||||||||||||||||||
Shares outstanding | 9,543,057 | 11,660,098 | 18,183,867 | 32,353,019 | 32,424,261 | 32,445,179 | 32,894,185 | 33,022,742 | 33,030,742 | ||||||||||||||||||||||||||||
Book value per share | $ | 7.96 | $ | 7.94 | $ | 8.27 | $ | 9.33 | $ | 9.44 | $ | 10.10 | $ | 10.96 | $ | 11.60 | $ | 11.74 | |||||||||||||||||||
Tangible book value per share | $ | 7.67 | $ | 6.57 | $ | 5.93 | $ | 7.38 | $ | 7.40 | $ | 8.12 | $ | 9.06 | $ | 9.76 | $ | 9.91 | |||||||||||||||||||
Grandpoint Capital, Inc. and Subsidiaries | |||||||||||||||||||||||||||||||||
Consolidated Income Statements | |||||||||||||||||||||||||||||||||
Dollars in $1,000's | Quarter | ||||||||||||||||||||||||||||||||
Ended | |||||||||||||||||||||||||||||||||
Year Ended December 31, | March 31, | ||||||||||||||||||||||||||||||||
2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | ||||||||||||||||||||||||||
Interest Income | $ | 2,117 | $ | 44,715 | $ | 69,166 | $ | 93,618 | $ | 102,882 | $ | 114,714 | $ | 123,511 | $ | 30,983 | |||||||||||||||||
Interest Expense | 204 | 4,174 | 4,109 | 4,248 | 4,826 | 5,883 | 8,256 | 2,558 | |||||||||||||||||||||||||
Net Interest Income | 1,913 | 40,541 | 65,057 | 89,370 | 98,056 | 108,831 | 115,255 | 28,425 | |||||||||||||||||||||||||
Provision for Loan Losses | 1,050 | 6,046 | 5,494 | 3,799 | 4,317 |
3,732 |
1,135 | 245 | |||||||||||||||||||||||||
Noninterest Income | 5,927 | 4,726 | 8,074 | 7,061 | 6,049 | 6,660 | 5,946 | 1,863 | |||||||||||||||||||||||||
Noninterest Expense: | |||||||||||||||||||||||||||||||||
Salaries and Benefits | 6,898 | 22,343 | 34,891 | 44,292 | 40,270 | 38,719 | 40,462 | 10,503 | |||||||||||||||||||||||||
Occupancy Expenses | 1,021 | 3,102 | 4,591 | 5,380 | 5,569 | 5,186 | 5,405 | 1,321 | |||||||||||||||||||||||||
Furniture and Equipment Expenses | 883 | 2,077 | 2,991 | 3,352 | 3,610 | 3,288 | 3,283 | 842 | |||||||||||||||||||||||||
Promotion Expenses | 738 | 1,178 | 1,385 | 1,941 | 1,620 | 1,217 | 1,292 | 373 | |||||||||||||||||||||||||
Data Processing Expenses | 307 | 1,264 | 2,020 | 2,580 | 1,862 | 1,908 | 2,015 | 516 | |||||||||||||||||||||||||
Professional Services | 1,292 | 2,826 | 3,820 | 4,263 | 2,406 | 2,709 | 2,683 | 638 | |||||||||||||||||||||||||
M&A, Conversion and Restructuring Costs | 2,346 | 5,984 | 947 | 10,304 | 3,988 | - | 300 | - | |||||||||||||||||||||||||
Office Supplies and Costs | 293 | 787 | 1,284 | 1,481 | 1,755 | 1,422 | 1,358 | 334 | |||||||||||||||||||||||||
Assessments and Insurance | 215 | 1,428 | 1,880 | 2,195 | 2,377 | 2,464 | 2,388 | 519 | |||||||||||||||||||||||||
Loan Expenses | - | - | 1,785 | 1,703 | 3,108 | 1,849 | 1,499 | 307 | |||||||||||||||||||||||||
Other Expenses | 259 | 3,104 | 2,924 | 4,400 | 4,239 | 3,889 | 3,909 | 927 | |||||||||||||||||||||||||
14,252 | 44,093 | 58,518 | 81,891 | 70,804 | 62,651 | 64,594 | 16,280 | ||||||||||||||||||||||||||
Income before Income Taxes | (7,462 | ) | (4,872 | ) | 9,119 | 10,741 | 28,984 | 49,108 | 55,472 | 13,763 | |||||||||||||||||||||||
Income Taxes | (374 | ) | - | (6,316 | ) | 4,328 | 11,814 | 19,364 | 22,286 | 5,590 | |||||||||||||||||||||||
Net Income | (7,088 | ) | (4,872 | ) | 15,435 | 6,413 | $ | 17,170 | $ | 29,744 | $ | 33,186 | $ | 8,173 | |||||||||||||||||||
EPS - basic | $ | (1.19 | ) | $ | (0.35 | ) | $ | 0.61 | $ | 0.20 | $ | 0.53 | $ | 0.91 | $ | 1.01 | $ | 0.25 | |||||||||||||||
ROAA | -2.36 | % | -0.53 | % | 0.96 | % | 0.29 | % | 0.70 | % | 1.00 | % | 1.03 | % | 1.02 | % | |||||||||||||||||
ROATE | -11.29 | % | -4.08 | % | 6.82 | % | 2.10 | % | 5.24 | % | 10.52 | % | 10.71 | % | 10.25 | % | |||||||||||||||||
Efficiency Ratio | 181.79 | % | 97.41 | % | 80.02 | % | 84.92 | % | 68.01 | % | 54.25 | % | 53.29 | % | 53.75 | % |