Grandpoint Capital, Inc., Reports First Quarter 2017 Earnings

LOS ANGELES--()--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 %

Contacts

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

Release Summary

Grandpoint Capital, Inc., announces first quarter 2017 net income of $8.2 million and total assets of $3.4 billion. The board of directors declares quarterly cash dividend of $0.15 per share.

Contacts

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