Earnings Release – Redwood Capital Bancorp – Second Quarter, 2024

Rhea-AI Summary

Redwood Capital Bancorp (OTCQX:RWCB), the only locally owned community bank holding company in Humboldt County, reported its Q2 2024 financial results. Despite slight decreases in earnings, the company maintained a strong balance sheet with healthy capital and liquidity positions. Key figures include:

- Total assets: $520 million
- Net loans: $383 million
- Total deposits: $461 million
- Net interest income: $4.3 million for Q2, $9 million YTD
- Net income after taxes: $1.3 million for Q2, $2.7 million YTD
- Earnings per share: $0.68 for Q2, $1.38 YTD
- Book value per share: Increased by 2% to $24.41

The Board declared a quarterly cash dividend of $0.08 per share, payable on August 9, 2024.

Positive

• Maintained strong balance sheet with healthy capital and liquidity positions
• Net interest income of $4.3 million for Q2 and $9 million YTD
• Net income after taxes of $1.3 million for Q2 and $2.7 million YTD
• Book value per share increased by 2% to $24.41
• Declared quarterly cash dividend of $0.08 per share

Negative

• Slight decreases in second quarter earnings
• Strategic management of slimmer balance sheet due to increased rate environment

Strong Balance Sheet – Continued Dividend

EUREKA, Calif.--(BUSINESS WIRE)-- On July 31, 2024, REDWOOD CAPITAL BANCORP (OTCQX:RWCB), 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, 2024. Redwood Capital Bank, the company’s wholly owned subsidiary, reported slight decreases for the second quarter earnings.

John Dalby, President and CEO, remarked, “In the second quarter of 2024, the company continued to maintain its strong balance sheet and loan quality, combined with healthy capital and liquidity positions. Earnings per share for the quarter was $0.68 and $1.38 year-to-date. Staff engagement and focus continues to carry the institution’s strong customer service ethic. I remain very proud to serve with the Redwood Capital Bank Board of Directors and staff, as they serve and support the Humboldt County community.”

The company strategically manages a slimmer balance sheet to enhance performance while transitioning in the increased rate environment. As of June 30, 2024, the company’s total assets were $520 million. Total loans net of unearned income was $383 million as of June 30, 2024. Total deposits were $461 million as of June 30, 2024.

The continued high performing balance sheet produced net interest income of $4.3 million for the second quarter ending June 30, 2024, and $9 million year-to-date. The company recorded a net income after taxes for the second quarter ending June 30, 2024, of $1.3 million and $2.7 million year-to-date. These strong earnings have increased book value per share by 2% or $0.42 to $24.41 for the second quarter ending June 30, 2024, and an increase to book value of $0.84 year-to-date. Renee Byers, SVP/Chief Financial Officer, stated, “Redwood Capital Bank continues to maintain a strong balance sheet while providing excellent service to our shareholders, customers and community.”

Additionally, the Board of Directors declared a quarterly cash dividend of $0.08 per share, payable on August 9, 2024, to shareholders of record at the close of business on July 29, 2024. The dividend is equivalent to an annual rate of $0.32 per share. CEO Dalby added, “Redwood Capital Bancorp continues to provide consistent earnings for our shareholders while remaining an economic foundation for the community.”

For more information regarding Redwood Capital Bancorp, please visit our website at www.redwoodcapitalbank.com, contact Renee Byers, CFO, at (707) 444-9849, or stop by our headquarters and main office at 402 “G” Street, Eureka, CA 95501. Redwood Capital Bancorp (OTCQX:RWCB) trades on the OTCQX Best Market. Companies meet high financial standards, follow best practice corporate governance, demonstrate compliance with U.S. securities laws and have a professional third-party sponsor introduction. Investors can find current financial disclosure and Real-Time Level 2 quotes for the Company on www.otcmarkets.com.

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						%
		6/30/2024			3/31/2024			Change
Balance Sheet Data (at period end)
Total assets		$	520,378		$	527,120		-1	%
Total deposits			460,814			468,151		-2	%
Total loans (net)			383,123			386,517		-1	%
Common equity			47,847			46,527		3	%
Common shares outstanding			1,960,374			1,939,192		1	%
Summary of Operations (Current Quarter)
Interest income			5,684			5,743		-1	%
Interest expense			1,343			1,094		23	%
Net Interest Income			4,341			4,649		-7	%
Non-interest income			908			966		-6	%
Non-interest expense			3,411			3,654		-7	%
Net Income before provision			1,838			1,961		-6	%
Provision for loan losses			46			74		-38	%
Income before taxes			1,792			1,887		-5	%
Income taxes/(credit)			456			521		-12	%
Net Income			1,336			1,366		-2	%
Earnings per common share (fully diluted)		$	0.68		$	0.70		-3	%
Book value per common share		$	24.41		$	23.99		2	%
		Period Ended						%
		6/30/2024			6/30/2023			Change
Balance Sheet Data (at period end)
Total assets		$	520,378		$	526,351		-1	%
Total deposits			460,814			473,564		-3	%
Total loans (net)			383,123			384,968		0	%
Common equity			47,847			41,410		16	%
Common shares outstanding			1,960,374			1,939,192		1	%
Summary of Operations (Current Quarter)
Interest income			5,684			5,138		11	%
Interest expense			1,343			502		168	%
Net Interest Income			4,341			4,636		-6	%
Non-interest income			908			1,215		-25	%
Non-interest expense			3,411			3,475		-2	%
Net Income before provision			1,838			2,376		-23	%
Provision for loan losses			46			16		100	%
Income before taxes			1,792			2,360		-24	%
Income taxes			456			648		-30	%
Net Income			1,336			1,712		-22	%
Earnings per common share (fully diluted)		$	0.68		$	0.88		-23	%
Book value per common share		$	24.41		$	21.35		14	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240731583650/en/

Renee Byers, CFO, (707) 444-9849

Source: Redwood Capital Bancorp

FAQ

What were Redwood Capital Bancorp's (RWCB) Q2 2024 earnings per share?

Redwood Capital Bancorp (RWCB) reported earnings per share of $0.68 for the second quarter of 2024.

What is the total asset value of Redwood Capital Bancorp (RWCB) as of June 30, 2024?

As of June 30, 2024, Redwood Capital Bancorp (RWCB) reported total assets of $520 million.

What dividend did Redwood Capital Bancorp (RWCB) declare for Q2 2024?

Redwood Capital Bancorp (RWCB) declared a quarterly cash dividend of $0.08 per share, payable on August 9, 2024, to shareholders of record as of July 29, 2024.

How much was Redwood Capital Bancorp's (RWCB) net income after taxes for Q2 2024?

Redwood Capital Bancorp (RWCB) reported a net income after taxes of $1.3 million for the second quarter ending June 30, 2024.