Press Release

Redwood Capital Bancorp: Strong Second Quarter Earnings –Continued Dividend

Company Release - 7/31/2019 9:00 AM ET

EUREKA, Calif., July 31, 2019 (GLOBE NEWSWIRE) -- On July 31, 2019, 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, 2019.  Redwood Capital Bank, the company’s wholly owned subsidiary, reported strong second quarter earnings.

John Dalby, President and CEO remarked, “The Redwood Capital Bank staff continues to deliver unmatched customer service and quality performance which has resulted in a growing net interest margin and consistent earnings performance.  They are engaged and active in the community and provide community service far beyond the walls of the branches. I am grateful for the staff that I work with as well as the focus and support of our Board of Directors.  Asset quality is excellent and continues to improve.  The bank is well positioned for the future.  The opening of the Henderson Center Branch has been well received by the community.  If you have not already done so, I encourage you to stop by and visit.”

Total assets as of June 30, 2019 were $360.7 million, an increase of 1% from the prior quarter and 3% from the same period last year. Total loans, net of unearned income, rose to $276.6 million as of June 30, 2019, a decrease of 2% from the March 31, 2019 figures and an increase of 2% over the quarter ended June 30, 2018.  Lastly, total deposits grew to $325.7 million as of June 30, 2019, an increase of 1% over the prior quarter and 2% higher than the June 30, 2018 reported figure. 

Net interest income for the quarter ended June 30, 2019 totaled $3,576,000 up 1% from the $3,553,000 reported for the three months ended March 31, 2019 and up 8% from the $3,300,000 reported for the three months ended June 30, 2018.  The company also reported net income after taxes and provision expenses in the second quarter of 2019 of $1,047,000 up 6% reported for the three months ended March 31, 2019; however down slightly by 6% from the $1,104,000 reported for the second quarter of 2018.  The net profit is primarily attributed to core earnings growth. 

Renee Byers, SVP/CFO stated, “We were pleased with the company’s financial performance during the second quarter of 2019.  The excellent quality of the balance sheet continued to produce outstanding results, asset quality remained strong and expenses were well controlled.” 

Additionally, the Board of Directors declared a quarterly cash dividend of $0.07 per share, payable on August 9, 2019, to shareholders of record at the close of business on July 29, 2019.  The dividend is equivalent to an annual rate of $0.28 per share or 1.67%, based upon a market price of $16.75 per common share. CEO Dalby explained, “The Board of Directors and management continue 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, SVP/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% 
   6/30/20193/31/2019Change 
       
Balance Sheet Data (at period end)    
 Total assets $360,721$356,6501%  
 Total deposits  325,758 322,4821%  
 Total loans (net)  276,559 281,212-2%  
 Common equity  29,206 28,6892%  
 Common shares outstanding  1,927,997 1,945,337-1%  
       
Summary of Operations (Current Quarter)     
 Interest income  3,868 3,8131%  
 Interest expense  292 26012%  
 Net Interest Income  3,576 3,5531%  
 Non-interest income  528 5221%  
 Non-interest expense  2,699 2,6860%  
 Net Income before provision 1,404 1,3891%  
 Provision for loan losses - -0%  
 Income before taxes  1,404 1,3891%  
 Income taxes/(credit)  357 397-10%  
 Net Income  1,047 9926%  
 Earnings per common share (fully diluted) $0.54$0.516%  
 Book value per common share $15.15$14.753%  
       
   Period Ended% 
   6/30/20196/30/2018Change 
       
Balance Sheet Data (at period end)    
 Total assets $360,721$349,4433%  
 Total deposits  325,758 318,0892%  
 Total loans (net)  276,559 270,6602%  
 Common equity  29,206 25,62114%  
 Common shares outstanding  1,927,997 1,944,873-1%  
       
Summary of Operations (Current Quarter)     
 Interest income  3,868 3,50510%  
 Interest expense  292 20542%  
 Net Interest Income  3,576 3,3008%  
 Non-interest income  528 664-20%  
 Non-interest expense  2,699 2,42111%  
 Net Income before provision 1,404 1,543-9%  
 Provision for loan losses 0 80100%  
 Income before taxes  1,404 1,463-4%  
 Income taxes  357 3541%  
 Net Income  1,047 1,109-6%  
 Earnings per common share (fully diluted) $0.54$0.57-5%  
 Book value per common share $15.15$13.1715%  

 

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Source: Redwood Capital Bank