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 $33.2 million for the year ended December 31, 2016, compared to $29.7 million in 2015. Total assets at December 31, 2016, were $3.3 billion, up from $3.2 billion at year-end 2015. In addition, the board of directors declared its fifth consecutive quarterly cash dividend payment of $0.12 per share, payable on or about February 14, 2017, to shareholders of record as of January 31, 2017.

“We had a strong year in 2016 with all of our key performance measures demonstrating 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 1.03% and our return on average tangible equity was 10.7% at year end. Our efficiency ratio of 53.3% reflects our commitment to carefully manage expenses as we continue to grow Grandpoint Bank. At December 31, 2016, we reported basic earnings per share of $1.01, and we achieved tangible book value per share of $9.76.”

At December 31, 2016, deposits totaled $2.6 billion with continued growth in core deposits. 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 far in excess of the regulatory minimums, with a Leverage Ratio of 9.97% and Total Risk-Based Capital Ratio of 13.57% at December 31, 2016.

In December 2016, Grandpoint Bank received a superior 5-star rating from independent rating and research firm BauerFinancial for the fourteenth consecutive quarter. The latest rating was based on September 30, 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,
  2010     2010     2011     2012     2013     2014     2015     2016  
 
Cash and due from banks $ 3,501 $ 27,791 $ 22,324 $ 43,714 $ 41,177 $ 37,688 $ 25,113 $ 28,919
Interest-bearing deposits in banks   72,825     33,604     127,803     291,545     171,408     314,005     171,625     213,365  
Cash and Cash Equivalents 76,326 61,395 150,127 335,259 212,585 351,693 196,738 242,284
Investment Securities 3,284 97,399 208,939 318,501 230,591 266,479 573,260 579,275
Loans:
Construction 481 18,327 20,324 54,315 79,588 110,286 130,801 194,471
Single family residential - 32,753 86,257 193,913 248,727 281,678 269,823 220,519
Multifamily loans 2,513 26,097 60,718 135,966 215,956 397,712 599,470 715,786
Commercial real estate 7,792 248,343 429,224 738,540 777,875 814,430 862,014 905,534
Commercial and industrial 2,005 83,847 136,492 295,199 371,341 375,607 412,051 322,419
Consumer   -     3,673     6,226     21,984     23,289     12,846     9,138     7,876  
Total Loans 12,791 413,040 739,241 1,439,917 1,716,776 1,992,559 2,283,297 2,366,605
Deferred loan fees, costs and discounts (137 ) (13,861 ) (15,580 ) (25,373 ) (18,410 ) (4,543 ) 3,550 3,199
Allowance for loan losses   -     (1,050 )   (5,722 )   (8,867 )   (12,087 )   (14,018 )   (17,245 )   (18,552 )
Net Loans 12,654 398,129 717,939 1,405,677 1,686,279 1,973,998 2,269,602 2,351,252
Goodwill 2,563 17,923 37,863 51,432 53,101 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
Deferred Tax Assets - 4,056 12,011 30,997 30,981 30,206 24,749 23,818
Other assets   2,981     19,005     24,959     50,195     48,987     79,210     70,107     69,491  
Total Assets $ 97,941   $ 600,631   $ 1,158,695   $ 2,203,883   $ 2,275,289   $ 2,765,972   $ 3,196,988   $ 3,326,936  
Deposits:
Demand deposits $ 3,664 $ 136,024 $ 327,638 $ 736,831 $ 764,936 $ 792,896 $ 852,263 $ 926,594
NOW accounts 547 22,651 57,302 88,994 132,743 136,003 139,660 148,071
Money market accounts 7,984 246,043 473,107 723,125 689,318 1,029,519 1,165,748 1,106,229
Savings accounts 1,353 4,703 9,403 20,587 36,914 35,505 39,979 47,426
Time deposits   5,618     78,353     112,407     298,226     313,788     411,908     348,068     347,775  
Total Deposits 19,166 487,774 979,857 1,867,763 1,937,699 2,405,831 2,545,718 2,576,095
Other liabilities 2,840 10,400 14,084 18,596 15,496 27,233 10,594 12,696
Other Borrowings - - 3,000 10,500 11,000 - 275,000 350,000
Subordinated debenture payable - 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
Additional Paid-In Capital 88,729 108,628 171,236 306,060 308,882 310,860 316,623 318,904
Unrealized gain (loss) on investment securities 23 (52 ) 150 1,410 (3,756 ) (1,090 ) (3,834 ) (1,009 )
Retained earnings (deficit)   (12,912 )   (16,073 )   (21,233 )   (5,924 )   489     17,659     47,403     64,765  
Total Grandpoint Capital Shareholders' Equity 75,935 92,619 150,334 301,869 305,939 327,753 360,521 382,990
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  
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  
 
Tangible book value $ 73,239 $ 76,655 $ 107,764 $ 238,615 $ 240,073 $ 263,367 $ 297,989 $ 322,174
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
Book value per share $ 7.96 $ 7.94 $ 8.27 $ 9.33 $ 9.44 $ 10.10 $ 10.96 $ 11.60
Tangible book value per share $ 7.67 $ 6.57 $ 5.93 $ 7.38 $ 7.40 $ 8.12 $ 9.06 $ 9.76
 
 
Grandpoint Capital, Inc. and Subsidiaries
Consolidated Income Statements
Dollars in $1,000's
             
Year Ended December 31,
  2010     2011     2012     2013     2014     2015     2016  
 
Interest Income $ 2,117 $ 44,715 $ 69,166 $ 93,618 $ 102,882 $ 114,714 $ 123,511
Interest Expense   204     4,174     4,109     4,248     4,826     5,883     8,256  
Net Interest Income 1,913 40,541 65,057 89,370 98,056 108,831 115,255
 
Provision for Loan Losses 1,050 6,046 5,494 3,799 4,317 3,732 1,135
Noninterest Income 5,927 4,726 8,074 7,061 6,049 6,660 5,946
 
Noninterest Expense:
Salaries and Benefits 6,898 22,343 34,891 44,292 40,270 38,719 40,462
Occupancy Expenses 1,021 3,102 4,591 5,380 5,569 5,186 5,405
Furniture and Equipment Expenses 883 2,077 2,991 3,352 3,610 3,288 3,283
Promotion Expenses 738 1,178 1,385 1,941 1,620 1,217 1,292
Data Processing Expenses 307 1,264 2,020 2,580 1,862 1,908 2,015
Professional Services 1,292 2,826 3,820 4,263 2,406 2,709 2,683
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
Assessments and Insurance 215 1,428 1,880 2,195 2,377 2,464 2,388
Loan Expenses - - 1,785 1,703 3,108 1,849 1,499
Other Expenses   259     3,104     2,924     4,400     4,239     3,889     3,909  
  14,252     44,093     58,518     81,891     70,804     62,651     64,594  
 
Income before Income Taxes (7,462 ) (4,872 ) 9,119 10,741 28,984 49,108 55,472
Income Taxes   (374 )   -     (6,316 )   4,328     11,814     19,364     22,286  
 
Net Income   (7,088 )   (4,872 )   15,435     6,413   $ 17,170   $ 29,744   $ 33,186  
 
EPS - basic $ (1.19 ) $ (0.35 ) $ 0.61 $ 0.20 $ 0.53 $ 0.91 $ 1.01
ROAA -2.36 % -0.53 % 0.96 % 0.29 % 0.70 % 1.00 % 1.03 %
ROATE -11.29 % -4.08 % 6.82 % 2.10 % 5.24 % 10.52 % 10.71 %
Efficiency Ratio 181.79 % 97.41 % 80.02 % 84.92 % 68.01 % 54.25 % 53.29 %