Grandpoint Capital, Inc., Reports Second 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 $16.6 million and total assets of $3.3 billion for the first half of 2017. In addition, the board of directors declared its seventh consecutive quarterly cash dividend. The quarterly cash dividend of $0.15 per share will be payable on or about August 9, 2017, to shareholders of record as of July 31, 2017.

“We continued to experience steady growth during the second quarter,” said Don M. Griffith, Chairman and CEO of Grandpoint Capital, Inc., and Grandpoint Bank. “Our key performance measures remain strong with a return on average assets of 1.03% and return on average tangible equity of 10.3% at the end of the second quarter. As we grow, we continue to manage our expenses carefully, as evidenced by our efficiency ratio of 54.2%. At June 30, 2017, we reported basic earnings per share of $0.50, and we achieved tangible book value per share of $10.04.”

At June 30, 2017, deposits totaled $2.5 billion, with demand deposits of $892.6 million. Total loans were $2.4 billion and asset quality remained strong. “We continue to operate a very safe bank,” said Griffith, “by adhering to a prudent and disciplined risk strategy.” Grandpoint Bank’s capital ratios remain far in excess of the regulatory minimums with a Tier 1 Leverage Ratio of 10.3% and Total Risk-Based Capital Ratio of 12.6% at June 30, 2017.

In June 2017, Grandpoint Bank received a superior 5-star rating from independent rating and research firm BauerFinancial for the 16th consecutive quarter. The latest rating was based on March 31, 2017, 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, June 30,
  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 $ 34,386
Interest-bearing deposits in banks   72,825     33,604     127,803     291,545     171,408     314,005     171,625     213,365     177,662  
Cash and Cash Equivalents 76,326 61,395 150,127 335,259 212,585 351,693 196,738 242,284 212,048
Investment Securities 3,284 97,399 208,939 318,501 230,591 266,479 573,260 579,275 450,287
Loans:
Construction 481 18,327 20,324 54,315 79,588 110,286 130,801 194,471 175,245
Single family residential - 32,753 86,257 193,913 248,727 281,678 269,823 220,519 200,324
Multifamily loans 2,513 26,097 60,718 135,966 215,956 397,712 599,470 715,786 789,607
Commercial real estate 7,792 248,343 429,224 738,540 777,875 814,430 862,014 905,534 943,154
Commercial and industrial 2,005 83,847 136,492 295,199 371,341 375,607 412,051 322,419 326,764
Consumer   -     3,673     6,226     21,984     23,289     12,846     9,138     7,876     12,344  
Total Loans 12,791 413,040 739,241 1,439,917 1,716,776 1,992,559 2,283,297 2,366,605 2,447,438
Deferred loan fees, costs and discounts (137 ) (13,861 ) (15,580 ) (25,373 ) (18,410 ) (4,543 ) 3,550 3,199 1,618
Allowance for loan losses   -     (1,050 )   (5,722 )   (8,867 )   (12,087 )   (14,018 )   (17,245 )   (18,552 )   (18,455 )
Net Loans 12,654 398,129 717,939 1,405,677 1,686,279 1,973,998 2,269,602 2,351,252 2,430,601
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 6,675
Deferred Tax Assets - 4,056 12,011 30,997 30,981 30,206 24,749 23,818 3,287
Other assets   2,981     19,005     24,959     50,195     48,987     79,210     70,107     69,491     95,825  
Total Assets $ 97,941   $ 600,631   $ 1,158,695   $ 2,203,883   $ 2,275,289   $ 2,765,972   $ 3,196,988   $ 3,326,936   $ 3,252,046  
Deposits:
Demand deposits $ 3,664 $ 136,024 $ 327,638 $ 736,831 $ 764,936 $ 792,896 $ 852,263 $ 926,594 $ 892,625
NOW accounts 547 22,651 57,302 88,994 132,743 136,003 139,660 148,071 163,764
Money market accounts 7,984 246,043 473,107 723,125 689,318 1,029,519 1,165,748 1,106,229 1,012,557
Savings accounts 1,353 4,703 9,403 20,587 36,914 35,505 39,979 47,426 46,480
Time deposits   5,618     78,353     112,407     298,226     313,788     411,908     348,068     347,775     355,192  
Total Deposits 19,166 487,774 979,857 1,867,763 1,937,699 2,405,831 2,545,718 2,576,095 2,470,618
Other liabilities 2,840 10,400 14,084 18,596 15,496 27,233 10,594 12,696 9,439
Other Borrowings - - 3,000 10,500 11,000 - 275,000 350,000 375,000
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 95 116 181 323 324 324 329 330 331
Additional Paid-In Capital 88,729 108,628 171,236 306,060 308,882 310,860 316,623 318,904 319,465
Unrealized gain (loss) on investment securities 23 (52 ) 150 1,410 (3,756 ) (1,090 ) (3,834 ) (1,009 ) (386 )
Retained earnings (deficit)   (12,912 )   (16,073 )   (21,233 )   (5,924 )   489     17,659     47,403     64,765     72,424  

Total Grandpoint Capital Shareholders' Equity

75,935 92,619 150,334 301,869 305,939 327,753 360,521 382,990 391,834
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     391,834  
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   $ 3,252,046  
 
Tangible book value $ 73,239 $ 76,655 $ 107,764 $ 238,615 $ 240,073 $ 263,367 $ 297,989 $ 322,174 $ 331,836
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 33,055,742
Book value per share $ 7.96 $ 7.94 $ 8.27 $ 9.33 $ 9.44 $ 10.10 $ 10.96 $ 11.60 $ 11.85
Tangible book value per share $ 7.67 $ 6.57 $ 5.93 $ 7.38 $ 7.40 $ 8.12 $ 9.06 $ 9.76 $ 10.04
 
Grandpoint Capital, Inc. and Subsidiaries
Consolidated Income Statements

Dollars in $1,000's

 

 

                Six Months
Ended
Year Ended December 31, June 30,
  2010     2011     2012     2013     2014     2015     2016     2017  
 
Interest Income $ 2,117 $ 44,715 $ 69,166 $ 93,618 $ 102,882 $ 114,714 $ 123,511 $ 63,287
Interest Expense   204     4,174     4,109     4,248     4,826     5,883     8,256     5,764  
Net Interest Income 1,913 40,541 65,057 89,370 98,056 108,831 115,255 57,523
 
Provision for Loan Losses 1,050 6,046 5,494 3,799 4,317 3,732 1,135 242
Noninterest Income 5,927 4,726 8,074 7,061 6,049 6,660 5,946 3,955
 
Noninterest Expense:
Salaries and Benefits 6,898 22,343 34,891 44,292 40,270 38,719 40,462 21,497
Occupancy Expenses 1,021 3,102 4,591 5,380 5,569 5,186 5,405 2,670
Furniture and Equipment Expenses 883 2,077 2,991 3,352 3,610 3,288 3,283 1,722
Promotion Expenses 738 1,178 1,385 1,941 1,620 1,217 1,292 729
Data Processing Expenses 307 1,264 2,020 2,580 1,862 1,908 2,015 1,047
Professional Services 1,292 2,826 3,820 4,263 2,406 2,709 2,683 1,312
M&A, Conversion and Restructuring Costs 2,346 5,984 947 10,304 3,988 - 300 162
Office Supplies and Costs 293 787 1,284 1,481 1,755 1,422 1,358 672
Assessments and Insurance 215 1,428 1,880 2,195 2,377 2,464 2,388 995
Loan Expenses - - 1,785 1,703 3,108 1,849 1,499 701
Other Expenses   259     3,104     2,924     4,400     4,239     3,889     3,909     1,815  
  14,252     44,093     58,518     81,891     70,804     62,651     64,594     33,322  
 
Income before Income Taxes (7,462 ) (4,872 ) 9,119 10,741 28,984 49,108 55,472 27,914
Income Taxes   (374 )   -     (6,316 )   4,328     11,814     19,364     22,286     11,338  
 
Net Income   (7,088 )   (4,872 )   15,435     6,413   $ 17,170   $ 29,744   $ 33,186   $ 16,576  
 
EPS - basic $ (1.19 ) $ (0.35 ) $ 0.61 $ 0.20 $ 0.53 $ 0.91 $ 1.01 $ 0.50
ROAA -2.36 % -0.53 % 0.96 % 0.29 % 0.70 % 1.00 % 1.03 % 1.03 %
ROATE -11.29 % -4.08 % 6.82 % 2.10 % 5.24 % 10.52 % 10.71 % 10.26 %
Efficiency Ratio 181.79 % 97.41 % 80.02 % 84.92 % 68.01 % 54.25 % 53.29 % 54.20 %

Contacts

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

Release Summary

Grandpoint Capital, Inc. reports second quarter 2017 earnings and declares quarterly cash dividend.

Contacts

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