GrandSouth Bancorp., the holding company for GrandSouth Bank, reported a 28.4% growth in assets year-over-year for the first quarter.
Assets went from $435.8 million in the first quarter of 2016 to $559.4 million in the first quarter of 2017 from the company’s legacy offices. Net non-interest income grew from $158,000 in the first quarter of 2016 to $253,000 in the first quarter of 2017.
Additionally, gross loan growth was 7.7% for the first quarter following the bank’s expansion into Columbia and Orangeburg and the addition of a senior agricultural lender.
“Many of our clients are telling us that they are having record setting performance in their companies,” said JB Schwiers, president and CEO of GrandSouth, in a news release. “This enhanced economic activity necessitates new equipment purchases, expansion to plants and warehouses.”
According to the bank, its total deposits grew $48.8 million in the first quarter and $101.8 million year-over-year — 9.9% growth in the first quarter and 27.4% growth year-over-year.
The bank did report a spike in losses from its floor plan lending division. According to the bank, a drop in used car industry values from the fourth quarter of 2016 and tax refund delays resulted in the bank charging off $1.6 million in the first quarter from its CarBucks sector, which was 92% of the total bank charge-offs.
“Our management team in this division believes this rate will come down during the remainder of the year, but will remain higher than our historical averages,” Schwiers said. “We made additional provisions to our allowance for loan loss to accommodate for this change in loss history.”
The charge-offs from the floor plan division resulted in a drop off in first quarter earnings for the company.