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 | % | |||||||||||||||||||
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