Press Release

Redwood Capital Bancorp: Strong Second Quarter Earnings – Director John R. “Jack” Selvage Retires – Continued Dividend

Company Release - 8/1/2018 9:00 AM ET

EUREKA, Calif., Aug. 01, 2018 (GLOBE NEWSWIRE) -- On August 1, 2018, REDWOOD CAPITAL BANCORP (RWCB.OB), the only locally owned and operated community bank holding company in Humboldt County, announced unaudited financial results for the three month period ended June 30, 2018.  Redwood Capital Bank, the company’s wholly owned subsidiary, reported strong second quarter earnings.

John Dalby, President and CEO remarked, “Management is encouraged with the excellent year-to-date results for 2018.  The earnings performance and balance sheet trends continue to demonstrate positive momentum, led by improving net income, a stronger balance sheet and continued positive movement in new business development.  The staff continues to serve our clients, community and shareholders with excellence, which has always been the driver of our success.”

Dalby added, “The Board of Directors and senior management wish to thank retiring Director John R. “Jack” Selvage for his years of service to the bank and its shareholders.  Jack was a founding Director, serving nearly 15 years at the post and was a driving force in the establishment of Corporate Governance and Strategic Planning.”

The company posted modest growth in the major balance sheet categories of assets, loans and deposits.  Total assets as of June 30, 2018 were $349.4 million, an increase of 2% from the prior quarter and 6% from the same period last year. Total loans, net of unearned income, rose to $270.6 million as of June 30, 2018, an increase of 4% from the March 31, 2018 figures and an increase of 7% over the quarter ended June 30, 2017.  Lastly, total deposits grew to $318 million as of June 30, 2018, an increase of 2% over the prior quarter and 6% higher than the June 30, 2017 reported figure. 

Net interest income for the quarter ended June 30, 2018 totaled $3,220,000, up 4% from the $3,090,000 reported for the three months ended March 31, 2018 and up 5% from the $3,053,000 reported for the three months ended June 30, 2017.  The company also reported net income after taxes and provision expenses in the second quarter of 2018 of $1,109,000, up 16% reported for the three months ended March 31, 2018 and up 67% from the $665,000 reported for the second quarter of 2017.  The net profit increase was primarily attributed to core earnings growth as well as benefit from the reduction in the federal tax rate. 

Renee Byers, VP/Interim CFO stated, “We continue to fortify an already strong balance sheet through prudent and strategic management of deposits, investments and loans.  I am both encouraged by the continued excellence and excited about the future potential of our strong financial position.”

Additionally, the Board of Directors declared a quarterly cash dividend of $0.07 per share, payable on August 13, 2018, to shareholders of record at the close of business on August 2, 2018.  The dividend is equivalent to an annual rate of $0.28 per share or 1.52%, based upon a market price of $18.48 per common share. CEO Dalby explained, “The Board of Directors and management continues to place a high priority on the maintenance of a consistent dividend along with continued growth in shareholder value.”

For more information regarding Redwood Capital Bancorp, please visit our website at www.redwoodcapitalbank.com, contact Renee Byers, VP/Interim CFO, at (707) 444-9849, or stop by our headquarters and main office at 402 “G” Street, Eureka, California  95501.  

This press release may contain forward-looking statements that are subject to risks and uncertainties. Such risks and uncertainties may include but are not necessarily limited to fluctuations in interest rates, inflation, government regulations and general economic conditions, and competition within the business areas in which the Bank is conducting its operations, including the real estate market in California and other factors beyond the Bank’s control. Such risks and uncertainties could cause results for subsequent interim periods or for the entire year to differ materially from those indicated. Readers should not place undue reliance on the forward-looking statements, which reflect management’s view only as of the date hereof. The Bank undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.

 
Redwood Capital Bancorp
Selected Consolidated Financial Results - Unaudited
(In Thousands)
       
       
   Period Ended% 
   6/30/20183/31/2018Change 
       
Balance Sheet Data (at period end)    
 Total assets $349,443$340,9642% 
 Total deposits  318,089 310,5402% 
 Total loans (net)  270,660 259,4034% 
 Common equity  25,621 24,7514% 
 Common shares outstanding  1,944,873 1,924,1571% 
       
Summary of Operations (Current Quarter)     
 Interest income  3,505   3,2767% 
 Interest expense  205   18610% 
 Net Interest Income  3,300   3,0907% 
 Non-interest income  664   730-9% 
 Non-interest expense  2,421   2,540-5% 
 Net Income before provision  1,543   1,28021% 
 Provision for loan losses 80 0100% 
 Income before taxes  1,463   1,28014% 
 Income taxes/(credit)  354   32310% 
 Net Income  1,109   95716% 
 Earnings per common share (fully diluted) $0.57$0.5015% 
 Book value per common share $13.17$12.862% 
       
   Period Ended% 
   6/30/20186/30/2017Change 
       
Balance Sheet Data (at period end)    
 Total assets $349,443$331,080   6% 
 Total deposits  318,089 301,4546% 
 Total loans (net)  270,660 254,0547% 
 Common equity  25,621 23,11111% 
 Common shares outstanding  1,944,873 1,924,1571% 
       
Summary of Operations (Current Quarter)     
 Interest income  3,505 3,2368% 
 Interest expense  205 18312% 
 Net Interest Income  3,300 3,0538% 
 Non-interest income  664 49734% 
 Non-interest expense  2,421 2,3423% 
 Net Income before provision 1,543 1,20828% 
 Provision for loan losses 80 120-33% 
 Income before taxes  1,463 1,08834% 
 Income taxes  354 423-16% 
 Net Income  1,109 66567% 
 Earnings per common share (fully diluted) $0.57$0.3565% 
 Book value per common share $13.17$12.0110% 
       

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Source: Redwood Capital Bank