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 $24.4 million for the year ended December 31, 2017. Total assets at December 31, 2017, were $3.2 billion. In addition, the board of directors declared its ninth consecutive quarterly cash dividend. The cash dividend of $0.15 per share will be payable on or about February 14, 2018, to shareholders of record as of January 31, 2018.
“We had a strong year in 2017 as we continued to build our business at a sustainable, measured pace,” said Don M. Griffith, Chairman and CEO of Grandpoint Capital, Inc., and Grandpoint Bank. “We saw substantial growth in our core deposits, which speaks to the strength of our long-standing client relationships, and we continued to operate a very safe bank, building our balance sheet with quality assets.
“During the fourth quarter 2017, we had several nonrecurring items that reduced our tangible book value, capital ratios and earnings,” said Griffith. “In November, we declared a one-time special dividend of $1.25 per share, and in December, we had to charge off $6.6 million of our deferred tax assets to reflect the reduction in federal income tax rates on corporations. In spite of these major adjustments, we still achieved a return on average assets of 0.76% and a return on average tangible equity of 7.52%, and we reported basic earnings per share of $0.74 and tangible book value per share of $8.75.” The lower federal tax rate will increase earnings by almost 20% in 2018 and beyond.
At December 31, 2017, deposits totaled $2.4 billion of which 46% is comprised of non-interest-bearing deposits. During 2017, we focused on developing a more liquid and stable deposit base by replacing non-core high-cost money market accounts with core business demand deposit relationships.
Total loans were $2.4 billion, and asset quality remained strong during the quarter as the Bank continued to maintain a prudent and disciplined risk strategy. Grandpoint Bank’s capital ratios remain in excess of the regulatory minimums, with a Leverage Ratio of 9.18% and Total Risk-Based Capital Ratio of 11.30% at December 31, 2017.
In December 2017, Grandpoint Bank received a superior 5-star rating from independent rating and research firm BauerFinancial for the eighteenth consecutive quarter. The latest rating was based on September 30, 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, | |||||||||||||||||||||||||||||||||||
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 | $ | 32,238 | ||||||||||||||||||
Interest-bearing deposits in banks | 72,825 | 33,604 | 127,803 | 291,545 | 171,408 | 314,005 | 171,625 | 213,365 | 151,556 | |||||||||||||||||||||||||||
Cash and Cash Equivalents | 76,326 | 61,395 | 150,127 | 335,259 | 212,585 | 351,693 | 196,738 | 242,284 | 183,794 | |||||||||||||||||||||||||||
Investment Securities | 3,284 | 97,399 | 208,939 | 318,501 | 230,591 | 266,479 | 573,260 | 579,275 | 502,615 | |||||||||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||||||
Construction | 481 | 18,327 | 20,324 | 54,315 | 79,588 | 110,286 | 130,801 | 194,471 | 137,165 | |||||||||||||||||||||||||||
Single family residential | - | 32,753 | 86,257 | 193,913 | 248,727 | 281,678 | 269,823 | 220,519 | 171,360 | |||||||||||||||||||||||||||
Multifamily loans | 2,513 | 26,097 | 60,718 | 135,966 | 215,956 | 397,712 | 599,470 | 715,786 | 719,698 | |||||||||||||||||||||||||||
Commercial real estate | 7,792 | 248,343 | 429,224 | 738,540 | 777,875 | 814,430 | 862,014 | 905,534 | 946,072 | |||||||||||||||||||||||||||
Commercial and industrial | 2,005 | 83,847 | 136,492 | 295,199 | 371,341 | 375,607 | 412,051 | 322,419 | 345,475 | |||||||||||||||||||||||||||
Consumer | - | 3,673 | 6,226 | 21,984 | 23,289 | 12,846 | 9,138 | 7,876 | 43,712 | |||||||||||||||||||||||||||
Total Loans | 12,791 | 413,040 | 739,241 | 1,439,917 | 1,716,776 | 1,992,559 | 2,283,297 | 2,366,605 | 2,363,482 | |||||||||||||||||||||||||||
Deferred loan fees, costs and discounts | (137 | ) | (13,861 | ) | (15,580 | ) | (25,373 | ) | (18,410 | ) | (4,543 | ) | 3,550 | 3,199 | 65 | |||||||||||||||||||||
Allowance for loan losses | - | (1,050 | ) | (5,722 | ) | (8,867 | ) | (12,087 | ) | (14,018 | ) | (17,245 | ) | (18,552 | ) | (18,939 | ) | |||||||||||||||||||
Net Loans | 12,654 | 398,129 | 717,939 | 1,405,677 | 1,686,279 | 1,973,998 | 2,269,602 | 2,351,252 | 2,344,608 | |||||||||||||||||||||||||||
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 | 5,865 | |||||||||||||||||||||||||||
Deferred Tax Assets | - | 4,056 | 12,011 | 30,997 | 30,981 | 30,206 | 24,749 | 23,818 | 15,686 | |||||||||||||||||||||||||||
Other assets | 2,981 | 19,005 | 24,959 | 50,195 | 48,987 | 79,210 | 70,107 | 69,491 | 88,043 | |||||||||||||||||||||||||||
Total Assets | $ | 97,941 | $ | 600,631 | $ | 1,158,695 | $ | 2,203,883 | $ | 2,275,289 | $ | 2,765,972 | $ | 3,196,988 | $ | 3,326,936 | $ | 3,193,934 | ||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||||||||||||
Demand deposits | $ | 3,664 | $ | 136,024 | $ | 327,638 | $ | 736,831 | $ | 764,936 | $ | 792,896 | $ | 852,263 | $ | 926,594 | $ | 1,090,900 | ||||||||||||||||||
NOW accounts | 547 | 22,651 | 57,302 | 88,994 | 132,743 | 136,003 | 139,660 | 148,071 | 145,591 | |||||||||||||||||||||||||||
Money market accounts | 7,984 | 246,043 | 473,107 | 723,125 | 689,318 | 1,029,519 | 1,165,748 | 1,106,229 | 843,920 | |||||||||||||||||||||||||||
Savings accounts | 1,353 | 4,703 | 9,403 | 20,587 | 36,914 | 35,505 | 39,979 | 47,426 | 44,837 | |||||||||||||||||||||||||||
Time deposits | 5,618 | 78,353 | 112,407 | 298,226 | 313,788 | 411,908 | 348,068 | 347,775 | 251,681 | |||||||||||||||||||||||||||
Total Deposits | 19,166 | 487,774 | 979,857 | 1,867,763 | 1,937,699 | 2,405,831 | 2,545,718 | 2,576,095 | 2,376,929 | |||||||||||||||||||||||||||
Other liabilities | 2,840 | 10,400 | 14,084 | 18,596 | 15,496 | 27,233 | 10,594 | 12,696 | 12,353 | |||||||||||||||||||||||||||
Other Borrowings | - | - | 3,000 | 10,500 | 11,000 | - | 275,000 | 350,000 | 450,000 | |||||||||||||||||||||||||||
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 | 332 | |||||||||||||||||||||||||||
Additional Paid-In Capital | 88,729 | 108,628 | 171,236 | 306,060 | 308,882 | 310,860 | 316,623 | 318,904 | 320,935 | |||||||||||||||||||||||||||
Unrealized gain (loss) on investment securities | 23 | (52 | ) | 150 | 1,410 | (3,756 | ) | (1,090 | ) | (3,834 | ) | (1,009 | ) | (646 | ) | |||||||||||||||||||||
Retained earnings (deficit) | (12,912 | ) | (16,073 | ) | (21,233 | ) | (5,924 | ) | 489 | 17,659 | 47,403 | 64,765 | 28,876 | |||||||||||||||||||||||
Total Grandpoint Capital Shareholders' Equity | 75,935 | 92,619 | 150,334 | 301,869 | 305,939 | 327,753 | 360,521 | 382,990 | 349,497 | |||||||||||||||||||||||||||
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 | 349,497 | |||||||||||||||||||||||||||
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 | $ | 3,193,934 | ||||||||||||||||||
Tangible book value | $ | 73,239 | $ | 76,655 | $ | 107,764 | $ | 238,615 | $ | 240,073 | $ | 263,367 | $ | 297,989 | $ | 322,174 | $ | 290,309 | ||||||||||||||||||
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 | 33,174,924 | |||||||||||||||||||||||||||
Book value per share | $ | 7.96 | $ | 7.94 | $ | 8.27 | $ | 9.33 | $ | 9.44 | $ | 10.10 | $ | 10.96 | $ | 11.60 | $ | 10.53 | ||||||||||||||||||
Tangible book value per share | $ | 7.67 | $ | 6.57 | $ | 5.93 | $ | 7.38 | $ | 7.40 | $ | 8.12 | $ | 9.06 | $ | 9.76 | $ | 8.75 | ||||||||||||||||||
Grandpoint Capital, Inc. and Subsidiaries | ||||||||||||||||||||||||||||||||
Consolidated Income Statements | ||||||||||||||||||||||||||||||||
Dollars in $1,000's | ||||||||||||||||||||||||||||||||
Year Ended December 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 | $ | 128,367 | ||||||||||||||||
Interest Expense | 204 | 4,174 | 4,109 | 4,248 | 4,826 | 5,883 | 8,256 | 12,242 | ||||||||||||||||||||||||
Net Interest Income | 1,913 | 40,541 | 65,057 | 89,370 | 98,056 | 108,831 | 115,255 | 116,125 | ||||||||||||||||||||||||
Provision for Loan Losses | 1,050 | 6,046 | 5,494 | 3,799 | 4,317 | 3,732 | 1,135 | 335 | ||||||||||||||||||||||||
Noninterest Income | 5,927 | 4,726 | 8,074 | 7,061 | 6,049 | 6,660 | 5,946 | 7,955 | ||||||||||||||||||||||||
Noninterest Expense: | ||||||||||||||||||||||||||||||||
Salaries and Benefits | 6,898 | 22,343 | 34,891 | 44,292 | 40,270 | 38,719 | 40,462 | 47,406 | ||||||||||||||||||||||||
Occupancy Expenses | 1,021 | 3,102 | 4,591 | 5,380 | 5,569 | 5,186 | 5,405 | 5,439 | ||||||||||||||||||||||||
Furniture and Equipment Expenses | 883 | 2,077 | 2,991 | 3,352 | 3,610 | 3,288 | 3,283 | 3,435 | ||||||||||||||||||||||||
Promotion Expenses | 738 | 1,178 | 1,385 | 1,941 | 1,620 | 1,217 | 1,292 | 1,358 | ||||||||||||||||||||||||
Data Processing Expenses | 307 | 1,264 | 2,020 | 2,580 | 1,862 | 1,908 | 2,015 | 2,120 | ||||||||||||||||||||||||
Professional Services | 1,292 | 2,826 | 3,820 | 4,263 | 2,406 | 2,709 | 2,683 | 3,105 | ||||||||||||||||||||||||
M&A, Conversion and Restructuring Costs | 2,346 | 5,984 | 947 | 10,304 | 3,988 | - | 300 | 236 | ||||||||||||||||||||||||
Office Supplies and Costs | 293 | 787 | 1,284 | 1,481 | 1,755 | 1,422 | 1,358 | 1,390 | ||||||||||||||||||||||||
Assessments and Insurance | 215 | 1,428 | 1,880 | 2,195 | 2,377 | 2,464 | 2,388 | 1,859 | ||||||||||||||||||||||||
Loan Expenses | - | - | 1,785 | 1,703 | 3,108 | 1,849 | 1,499 | 1,227 | ||||||||||||||||||||||||
Other Expenses | 259 | 3,104 | 2,924 | 4,400 | 4,239 | 3,889 | 3,909 | 4,055 | ||||||||||||||||||||||||
14,252 | 44,093 | 58,518 | 81,891 | 70,804 | 62,651 | 64,594 | 71,630 | |||||||||||||||||||||||||
Income before Income Taxes | (7,462 | ) | (4,872 | ) | 9,119 | 10,741 | 28,984 | 49,108 | 55,472 | 52,115 | ||||||||||||||||||||||
Income Taxes | (374 | ) | - | (6,316 | ) | 4,328 | 11,814 | 19,364 | 22,286 | 27,673 | ||||||||||||||||||||||
Net Income | (7,088 | ) | (4,872 | ) | 15,435 | 6,413 | $ | 17,170 | $ | 29,744 | $ | 33,186 | $ | 24,442 | ||||||||||||||||||
EPS - basic | $ | (1.19 | ) | $ | (0.35 | ) | $ | 0.61 | $ | 0.20 | $ | 0.53 | $ | 0.91 | $ | 1.01 | $ | 0.74 | ||||||||||||||
ROAA | -2.36 | % | -0.53 | % | 0.96 | % | 0.29 | % | 0.70 | % | 1.00 | % | 1.03 | % | 0.76 | % | ||||||||||||||||
ROATE | -11.29 | % | -4.08 | % | 6.82 | % | 2.10 | % | 5.24 | % | 10.52 | % | 10.71 | % | 7.52 | % | ||||||||||||||||
Efficiency Ratio | 181.79 | % | 97.41 | % | 80.02 | % | 84.92 | % | 68.01 | % | 54.25 | % | 53.29 | % | 57.73 | % | ||||||||||||||||