Grandpoint Capital, Inc., the holding company for Grandpoint Bank, reported net income of $29.7 million for the year ended December 31, 2015, compared to $17.2 million in 2014, an increase of 73.2%. The holding company also increased total assets to $3.2 billion at December 31, 2015, up from $2.8 billion at year-end 2014, all via organic growth.

“Grandpoint had a very strong year in 2015,” said Don M. Griffith, Chairman and CEO of Grandpoint Capital, Inc., and Grandpoint Bank. “In addition to posting record earnings, we also achieved a sustainable 1.00% return on average assets, and our efficiency ratio of 54.3% demonstrates our success in managing expenses as we continue to grow Grandpoint Bank. By focusing on our core client relationships, we have been able to achieve strong and consistent organic growth in both deposits and loans.”

At December 31, 2015, deposits totaled $2.5 billion, with steady growth in core deposits. Total loans were $2.3 billion, and asset quality remained strong during the quarter as the Bank continued to maintain a prudent and disciplined risk strategy. Key performance metrics also demonstrated the Bank's long-term strength. In addition to return on average assets of 1.00% the Company reported earnings per share (basic) of $0.91, return on average tangible equity of 10.5% and achieved tangible book value per share of $9.06 at year end.

Throughout 2015, Grandpoint’s capital ratios were above levels considered well-capitalized by bank regulators. At December 31, 2015, the Leverage Ratio was 9.7% and Total Risk-Based Capital Ratio was 13.2%.

In December 2015, Grandpoint Bank received a superior 5-star rating from independent rating and research firm BauerFinancial for the tenth consecutive quarter. The latest rating was based on September 30, 2015, 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 operates in Southern California, Arizona and Vancouver, Washington.

More information about the Bank is available at www.grandpointbank.com.

                             
Grandpoint Capital, Inc. and Subsidiaries
Consolidated Balance Sheets - unaudited
Dollars in $1,000's
 
June 30, December 31, December 31,
2010 2010 2011 2012 2013 2014 2015
 
Cash and due from banks $ 3,501 $ 27,791 $ 22,324 $ 43,714 $ 41,177 $ 37,688 $ 25,113
Interest-bearing deposits in banks   72,825     33,604     127,803     291,545     171,408     314,005     171,625  
Cash and Cash Equivalents 76,326 61,395 150,127 335,259 212,585 351,693 196,738
Investment Securities 3,284 97,399 208,939 318,501 230,591 266,479 573,260
Loans:
Construction 481 18,327 20,324 54,315 79,588 110,286 130,801
Single family residential - 32,753 86,257 193,913 248,727 281,678 269,823
Multifamily loans 2,513 26,097 60,718 135,966 215,956 397,712 599,470
Commercial real estate 7,792 248,343 429,224 738,540 777,875 814,430 862,014
Commercial and industrial 2,005 83,847 136,492 295,199 371,341 375,607 412,051
Consumer   -     3,673     6,226     21,984     23,289     12,846     9,138  
Total Loans 12,791 413,040 739,241 1,439,917 1,716,776 1,992,559 2,283,297
Deferred loan fees, costs and discounts (137 ) (13,861 ) (15,580 ) (25,373 ) (18,410 ) (4,543 ) 3,550
Allowance for loan losses   -     (1,050 )   (5,722 )   (8,867 )   (12,087 )   (14,018 )   (17,245 )
Net Loans 12,654 398,129 717,939 1,405,677 1,686,279 1,973,998 2,269,602
Goodwill 2,563 17,923 37,863 51,432 53,101 53,323 53,323
Core deposit and other intangibles 133 2,724 6,857 11,822 12,765 11,063 9,209
Deferred Tax Assets - 4,056 12,011 30,997 30,981 30,206 24,749
Other assets   2,981     19,005     24,959     50,195     48,987     79,210     70,107  
Total Assets $ 97,941   $ 600,631   $ 1,158,695   $ 2,203,883   $ 2,275,289   $ 2,765,972   $ 3,196,988  
Deposits:
Demand deposits $ 3,664 $ 136,024 $ 327,638 $ 736,831 $ 764,936 $ 792,896 $ 852,263
NOW accounts 547 22,651 57,302 88,994 132,743 136,003 139,660
Money market accounts 7,984 246,043 473,107 723,125 689,318 1,029,519 1,165,748
Savings accounts 1,353 4,703 9,403 20,587 36,914 35,505 39,979
Time deposits   5,618     78,353     112,407     298,226     313,788     411,908     348,068  
Total Deposits 19,166 487,774 979,857 1,867,763 1,937,699 2,405,831 2,545,718
Other liabilities 2,840 10,400 14,084 18,596 15,496 27,233 10,594
Other Borrowings - - 3,000 10,500 11,000 - 275,000
Subordinated debenture payable - 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
Additional Paid-In Capital 88,729 108,628 171,236 306,060 308,882 310,860 316,623
Unrealized gain (loss) on investment securities 23 (52 ) 150 1,410 (3,756 ) (1,090 ) (3,834 )
Retained earnings (deficit)   (12,912 )   (16,073 )   (21,233 )   (5,924 )   489     17,659     47,403  
Total Grandpoint Capital Shareholders' Equity 75,935 92,619 150,334 301,869 305,939 327,753 360,521
Noncontrolling interest   -     4,683     6,265     -     -     -     -  
Total Shareholders' Equity   75,935     97,302     156,599     301,869     305,939     327,753     360,521  
Total Liabilities and Shareholders' Equity $ 97,941   $ 600,631   $ 1,158,695   $ 2,203,883   $ 2,275,289   $ 2,765,972   $ 3,196,988  
 
Total loans to deposits 66.7 % 84.7 % 75.4 % 77.1 % 88.6 % 82.8 % 89.7 %
Tier 1 Capital to average assets 77.5 % 33.4 % 9.5 % 11.4 % 10.5 % 10.6 % 9.7 %
 
Tangible book value $ 73,239 $ 76,655 $ 107,764 $ 238,615 $ 240,073 $ 263,367 $ 297,989
Shares outstanding 9,543,057 11,660,098 18,183,867 32,353,019 32,424,261 32,445,179 32,894,185
Book value per share $ 7.96 $ 7.94 $ 8.27 $ 9.33 $ 9.44 $ 10.10 $ 10.96
Tangible book value per share $ 7.67 $ 6.57 $ 5.93 $ 7.38 $ 7.40 $ 8.12 $ 9.06
 
 
             
Grandpoint Capital, Inc. and Subsidiaries
Consolidated Income Statements - unaudited
Dollars in $1,000's
 
            Year Ended
Year Ended December 31, December 31,
2010 2011 2012 2013 2014 2015
 
Interest Income $ 2,117 $ 44,715 $ 69,166 $ 93,618 $ 102,882 $ 114,714
Interest Expense   204     4,174     4,109     4,248     4,826     5,883  
Net Interest Income 1,913 40,541 65,057 89,370 98,056 108,831
 
Provision for Loan Losses 1,050 6,046 5,494 3,799 4,317 3,732
Noninterest Income 5,927 4,726 8,074 7,061 6,049 6,660
 
Noninterest Expense:
Salaries and Benefits 6,898 22,343 34,891 44,292 40,270 38,719
Occupancy Expenses 1,021 3,102 4,591 5,380 5,569 5,186
Furniture and Equipment Expenses 883 2,077 2,991 3,352 3,610 3,288
Promotion Expenses 738 1,178 1,385 1,941 1,620 1,217
Data Processing Expenses 307 1,264 2,020 2,580 1,862 1,908
Professional Services 1,292 2,826 3,820 4,263 2,406 2,709
M&A, Conversion and Restructuring Costs 2,346 5,984 947 10,304 3,988 -
Office Supplies and Costs 293 787 1,284 1,481 1,755 1,422
Assessments and Insurance 215 1,428 1,880 2,195 2,377 2,464
Loan Expenses - - 1,785 1,703 3,108 1,849
Other Expenses   259     3,104     2,924     4,400     4,239     3,889  
  14,252     44,093     58,518     81,891     70,804     62,651  
 
Income before Income Taxes (7,462 ) (4,872 ) 9,119 10,741 28,984 49,108
Income Taxes   (374 )   -     (6,316 )   4,328     11,814     19,364  
 
Net Income   (7,088 )   (4,872 )   15,435     6,413   $ 17,170   $ 29,744  
 
EPS - basic $ (1.19 ) $ (0.35 ) $ 0.61 $ 0.20 $ 0.53 $ 0.91
Return on average assets -2.36 % -0.53 % 0.96 % 0.29 % 0.70 % 1.00 %
Return on average tangible equity -11.29 % -4.08 % 6.82 % 2.10 % 5.24 % 10.52 %
Efficiency ratio 181.79 % 97.41 % 80.02 % 84.92 % 68.01 % 54.25 %