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 $8.9 million and total assets of $3.3 billion for the quarter ended March 31, 2018. In addition, the board of directors declared its tenth consecutive quarterly cash dividend. The cash dividend of $0.15 per share will be payable on or about May 10, 2018, to shareholders of record as of April 30, 2018.
“We continued to demonstrate the sustained financial strength of Grandpoint Capital in the first 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 1.13% and a return on average tangible equity of 12.51% at the end of the first quarter. At March 31, 2018, we reported basic earnings per share of $0.27, and we achieved tangible book value per share of $8.83.”
At March 31, 2018, deposits totaled $2.4 billion, of which 46% is comprised of core business demand deposits, signaling the strength and depth of the Bank’s long-standing client 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 9.29% and Total Risk-Based Capital Ratio of 11.63% at March 31, 2018.
In March 2018, Grandpoint Bank received a superior 5-star rating from independent rating and research firm BauerFinancial for the nineteenth consecutive quarter. The latest rating was based on December 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. In February 2018, Grandpoint Capital and Pacific Premier Bancorp, Inc. (NASDAQ: PPBI) announced a definitive agreement under which Pacific Premier will acquire Grandpoint in an all-stock transaction. The transaction is expected to close in the third quarter of 2018.
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, | March 31, | |||||||||||||||||||||||||||||||||||||||
2010 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | ||||||||||||||||||||||||||||||||
Cash and due from banks | $ | 3,501 | $ | 27,791 | $ | 22,324 | $ | 43,714 | $ | 41,177 | $ | 37,688 | $ | 25,113 | $ | 28,919 | $ | 32,238 | $ | 51,427 | |||||||||||||||||||||
Interest-bearing deposits in banks | 72,825 | 33,604 | 127,803 | 291,545 | 171,408 | 314,005 | 171,625 | 213,365 | 151,556 | 197,737 | |||||||||||||||||||||||||||||||
Cash and Cash Equivalents | 76,326 | 61,395 | 150,127 | 335,259 | 212,585 | 351,693 | 196,738 | 242,284 | 183,794 | 249,164 | |||||||||||||||||||||||||||||||
Investment Securities | 3,284 | 97,399 | 208,939 | 318,501 | 230,591 | 266,479 | 573,260 | 579,275 | 502,615 | 499,098 | |||||||||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||||||||||
Construction | 481 | 18,327 | 20,324 | 54,315 | 79,588 | 110,286 | 130,801 | 194,471 | 137,165 | 143,659 | |||||||||||||||||||||||||||||||
Single family residential | - | 32,753 | 86,257 | 193,913 | 248,727 | 281,678 | 269,823 | 220,519 | 171,360 | 142,090 | |||||||||||||||||||||||||||||||
Multifamily loans | 2,513 | 26,097 | 60,718 | 135,966 | 215,956 | 397,712 | 599,470 | 715,786 | 719,698 | 709,206 | |||||||||||||||||||||||||||||||
Commercial real estate | 7,792 | 248,343 | 429,224 | 738,540 | 777,875 | 814,430 | 862,014 | 905,534 | 946,072 | 962,430 | |||||||||||||||||||||||||||||||
Commercial and industrial | 2,005 | 83,847 | 136,492 | 295,199 | 371,341 | 375,607 | 412,051 | 322,419 | 345,475 | 358,753 | |||||||||||||||||||||||||||||||
Consumer | - | 3,673 | 6,226 | 21,984 | 23,289 | 12,846 | 9,138 | 7,876 | 43,712 | 49,801 | |||||||||||||||||||||||||||||||
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 | 2,365,939 | |||||||||||||||||||||||||||||||
Deferred loan fees, costs and discounts | (137 | ) | (13,861 | ) | (15,580 | ) | (25,373 | ) | (18,410 | ) | (4,543 | ) | 3,550 | 3,199 | 65 | (850 | ) | ||||||||||||||||||||||||
Allowance for loan losses | - | (1,050 | ) | (5,722 | ) | (8,867 | ) | (12,087 | ) | (14,018 | ) | (17,245 | ) | (18,552 | ) | (18,939 | ) | (18,710 | ) | ||||||||||||||||||||||
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 | 2,346,379 | |||||||||||||||||||||||||||||||
Goodwill | 2,563 | 17,923 | 37,863 | 51,432 | 53,101 | 53,323 | 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 | 5,480 | |||||||||||||||||||||||||||||||
Deferred Tax Assets | - | 4,056 | 12,011 | 30,997 | 30,981 | 30,206 | 24,749 | 23,818 | 15,686 | 16,292 | |||||||||||||||||||||||||||||||
Other assets | 2,981 | 19,005 | 24,959 | 50,195 | 48,987 | 79,210 | 70,107 | 69,491 | 88,043 | 88,531 | |||||||||||||||||||||||||||||||
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 | $ | 3,258,267 | |||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||||||||||||||||||
Demand deposits | $ | 3,664 | $ | 136,024 | $ | 327,638 | $ | 736,831 | $ | 764,936 | $ | 792,896 | $ | 852,263 | $ | 926,594 | $ | 1,090,900 | $ | 1,099,105 | |||||||||||||||||||||
NOW accounts | 547 | 22,651 | 57,302 | 88,994 | 132,743 | 136,003 | 139,660 | 148,071 | 145,591 | 164,550 | |||||||||||||||||||||||||||||||
Money market accounts | 7,984 | 246,043 | 473,107 | 723,125 | 689,318 | 1,029,519 | 1,165,748 | 1,106,229 | 843,920 | 843,700 | |||||||||||||||||||||||||||||||
Savings accounts | 1,353 | 4,703 | 9,403 | 20,587 | 36,914 | 35,505 | 39,979 | 47,426 | 44,837 | 47,320 | |||||||||||||||||||||||||||||||
Time deposits | 5,618 | 78,353 | 112,407 | 298,226 | 313,788 | 411,908 | 348,068 | 347,775 | 251,681 | 259,886 | |||||||||||||||||||||||||||||||
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 | 2,414,561 | |||||||||||||||||||||||||||||||
Other liabilities | 2,840 | 10,400 | 14,084 | 18,596 | 15,496 | 27,233 | 10,594 | 12,696 | 12,353 | 11,707 | |||||||||||||||||||||||||||||||
Other Borrowings | - | - | 3,000 | 10,500 | 11,000 | - | 275,000 | 350,000 | 450,000 | 475,000 | |||||||||||||||||||||||||||||||
Subordinated debenture payable | - | 5,155 | 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 | 332 | |||||||||||||||||||||||||||||||
Additional Paid-In Capital | 88,729 | 108,628 | 171,236 | 306,060 | 308,882 | 310,860 | 316,623 | 318,904 | 320,935 | 320,949 | |||||||||||||||||||||||||||||||
Unrealized gain (loss) on investment securities | 23 | (52 | ) | 150 | 1,410 | (3,756 | ) | (1,090 | ) | (3,834 | ) | (1,009 | ) | (788 | ) | (2,409 | ) | ||||||||||||||||||||||||
Retained earnings (deficit) | (12,912 | ) | (16,073 | ) | (21,233 | ) | (5,924 | ) | 489 | 17,659 | 47,403 | 64,765 | 29,018 | 32,972 | |||||||||||||||||||||||||||
Total Grandpoint Capital Shareholders' Equity | 75,935 | 92,619 | 150,334 | 301,869 | 305,939 | 327,753 | 360,521 | 382,990 | 349,497 | 351,844 | |||||||||||||||||||||||||||||||
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 | 351,844 | |||||||||||||||||||||||||||||||
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 | $ | 3,258,267 | |||||||||||||||||||||
Tangible book value | $ | 73,239 | $ | 76,655 | $ | 107,764 | $ | 238,615 | $ | 240,073 | $ | 263,367 | $ | 297,989 | $ | 322,174 | $ | 290,309 | $ | 293,041 | |||||||||||||||||||||
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 | 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 | $ | 10.61 | |||||||||||||||||||||
Tangible book value per share | $ | 7.67 | $ | 6.57 | $ | 5.93 | $ | 7.38 | $ | 7.40 | $ | 8.12 | $ | 9.06 | $ | 9.76 | $ | 8.75 | $ | 8.83 |
Grandpoint Capital, Inc. and Subsidiaries | |||||||||||||||||||||||||||||||||||||
Consolidated Income Statements | |||||||||||||||||||||||||||||||||||||
Dollars in $1,000's | Three | ||||||||||||||||||||||||||||||||||||
Months Ended | |||||||||||||||||||||||||||||||||||||
Year Ended December 31, | March 31, | ||||||||||||||||||||||||||||||||||||
2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | |||||||||||||||||||||||||||||
Interest Income | $ | 2,117 | $ | 44,715 | $ | 69,166 | $ | 93,618 | $ | 102,882 | $ | 114,714 | $ | 123,511 | $ | 128,367 | $ | 32,865 | |||||||||||||||||||
Interest Expense | 204 | 4,174 | 4,109 | 4,248 | 4,826 | 5,883 | 8,256 | 12,242 | 3,861 | ||||||||||||||||||||||||||||
Net Interest Income | 1,913 | 40,541 | 65,057 | 89,370 | 98,056 | 108,831 | 115,255 | 116,125 | 29,004 | ||||||||||||||||||||||||||||
Provision for Loan Losses | 1,050 | 6,046 | 5,494 | 3,799 | 4,317 | 3,732 | 1,135 | 335 | (5 | ) | |||||||||||||||||||||||||||
Noninterest Income | 5,927 | 4,726 | 8,074 | 7,061 | 6,049 | 6,660 | 5,946 | 7,955 | 1,244 | ||||||||||||||||||||||||||||
Noninterest Expense: | |||||||||||||||||||||||||||||||||||||
Salaries and Benefits | 6,898 | 22,343 | 34,891 | 44,292 | 40,270 | 38,719 | 40,462 | 47,406 | 11,322 | ||||||||||||||||||||||||||||
Occupancy Expenses | 1,021 | 3,102 | 4,591 | 5,380 | 5,569 | 5,186 | 5,405 | 5,439 | 1,352 | ||||||||||||||||||||||||||||
Furniture and Equipment Expenses | 883 | 2,077 | 2,991 | 3,352 | 3,610 | 3,288 | 3,283 | 3,435 | 921 | ||||||||||||||||||||||||||||
Promotion Expenses | 738 | 1,178 | 1,385 | 1,941 | 1,620 | 1,217 | 1,292 | 1,358 | 420 | ||||||||||||||||||||||||||||
Data Processing Expenses | 307 | 1,264 | 2,020 | 2,580 | 1,862 | 1,908 | 2,015 | 2,120 | 548 | ||||||||||||||||||||||||||||
Professional Services | 1,292 | 2,826 | 3,820 | 4,263 | 2,406 | 2,709 | 2,683 | 3,105 | 1,173 | ||||||||||||||||||||||||||||
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 | 348 | ||||||||||||||||||||||||||||
Assessments and Insurance | 215 | 1,428 | 1,880 | 2,195 | 2,377 | 2,464 | 2,388 | 1,859 | 508 | ||||||||||||||||||||||||||||
Loan Expenses | - | - | 1,785 | 1,703 | 3,108 | 1,849 | 1,499 | 1,227 | 363 | ||||||||||||||||||||||||||||
Other Expenses | 259 | 3,104 | 2,924 | 4,400 | 4,239 | 3,889 | 3,909 | 4,055 | 945 | ||||||||||||||||||||||||||||
14,252 | 44,093 | 58,518 | 81,891 | 70,804 | 62,651 | 64,594 | 71,630 | 17,900 | |||||||||||||||||||||||||||||
Income before Income Taxes | (7,462 | ) | (4,872 | ) | 9,119 | 10,741 | 28,984 | 49,108 | 55,472 | 52,115 | 12,353 | ||||||||||||||||||||||||||
Income Taxes | (374 | ) | - | (6,316 | ) | 4,328 | 11,814 | 19,364 | 22,286 | 27,673 | 3,423 | ||||||||||||||||||||||||||
Net Income | (7,088 | ) | (4,872 | ) | 15,435 | 6,413 | $ | 17,170 | $ | 29,744 | $ | 33,186 | $ | 24,442 | $ | 8,930 | |||||||||||||||||||||
EPS - basic | $ | (1.19 | ) | $ | (0.35 | ) | $ | 0.61 | $ | 0.20 | $ | 0.53 | $ | 0.91 | $ | 1.01 | $ | 0.74 | $ | 0.27 | |||||||||||||||||
ROAA | -2.36 | % | -0.53 | % | 0.96 | % | 0.29 | % | 0.70 | % | 1.00 | % | 1.03 | % | 0.76 | % | 1.13 | % | |||||||||||||||||||
ROATE | -11.29 | % | -4.08 | % | 6.82 | % | 2.10 | % | 5.24 | % | 10.52 | % | 10.71 | % | 7.52 | % | 12.51 | % | |||||||||||||||||||
Efficiency Ratio | 181.79 | % | 97.41 | % | 80.02 | % | 84.92 | % | 68.01 | % | 54.25 | % | 53.29 | % | 57.73 | % | 59.18 | % |