Despite exiting the commercial invoice financing business and moving away from loan relationships “that failed to meet our quality standards,” GrandSouth Bancorporation, holding company for GrandSouth Bank, reported total asset growth in 2016.
The company reported total asset growth of 21% year-over-year to $516 million as of Dec. 31, 2016. Moving away from some loan relationships coupled with loan sales resulted in a $14 million drop in loans, but the bank reported 13.4% loan growth over the year with 69% of that growth coming in Q4 2016, according to a news release from the company.
Total deposits for the bank were $430 million, compared to $350 million reported at the end of 2015. Core deposits were up 27% and brokered deposits were down 48%.
“For the first time, our lenders were given goals not only to originate loan relationships but also to originate and expand core deposit relationships. Also in 2016, we worked with our deposit operations team to create branch goals that focused on core deposit growth and non-interest fee income,” said J.B. Schwiers, president of GrandSouth, in the release. “These combined efforts lead to a 27% increase in core deposits, and a 48% reduction in brokered deposits. Implementing this strategy also achieved 15% growth in our demand deposits, our lowest cost funding source.”
The bank expanded into the Columbia and Orangeburg markets which led to an increase in company expenses. The company reported expenses of $5.8 million for Q4 2016, compared to $4.2 million in the period a year prior.
Looking ahead, Schwiers said those added expenses “are positioning us for long term growth and profitability.”