Earnings Release – Redwood Capital Bancorp – Second Quarter, 2022

Rhea-AI Summary

Redwood Capital Bancorp (RWCB) reported strong financial results for Q2 2022, with net income rising 86% to $1,528,000 and earnings per share (EPS) of $0.77, up 84% year-over-year. Total net loans increased by 4% to $350.8 million, while total assets decreased by 5% to $548 million. The Board declared a quarterly dividend of $0.07 per share, reflecting a commitment to shareholder returns. CEO John Dalby emphasized improved asset quality and future positioning.

Positive

• Net income increased by 86% to $1,528,000.
• Earnings per share rose 84% to $0.77.
• Total loans increased by 4% to $350.8 million.
• Declared quarterly dividend of $0.07 per share.

Negative

• Total assets decreased by 5% to $548 million.
• Total deposits fell by 3% to $500.2 million.
• Common equity decreased by 2% to $36.6 million.
• Book value per share fell by 3% to $18.52.

Strong Second Quarter Earnings – Continued Dividend

EUREKA, Calif.--(BUSINESS WIRE)-- On July 27, 2022, REDWOOD CAPITAL BANCORP (OTCQB: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, 2022. Redwood Capital Bank, the company’s wholly owned subsidiary, reported strong second quarter earnings.

John Dalby, President and CEO remarked, “At Redwood Capital Bank, the Board of Directors, management and staff are committed to providing exceptional customer service and support to our local community. Since 2004, we have remained mindful of the company’s mission to be Humboldt County’s local, community bank. Asset quality is excellent and continues to improve. The bank is well positioned for the future.”

In an effort to further strengthen the balance sheet, Redwood Capital Bank strategically reduced total assets as of June 30, 2022 by 5% from the previous quarter to $548 million. Total loans, net of unearned income, totaled $350.8 million as of June 30, 2022, compared to $337 million reported for the quarter ended March 31, 2022 and $343 million for the quarter ended June 30, 2021.

Net interest income for the quarter ended June 30, 2022 totaled $3,930,000 an increase of 10% from the $3,572,000 reported for the three months ended March 31, 2022 and a slight increase from the $3,921,000 reported for the period ended June 30, 2021. The company also reported net income after taxes and provision expenses in the second quarter of 2022 of $1,528,000 up 86% reported for the three months ended March 31, 2022 and an increase of 2% from the $1,492,000 reported for the second quarter of 2021. Renee Byers, SVP/CFO stated, “The company’s performance is a direct reflection of the incredible teamwork and dedication to our community - that is the culture at Redwood Capital Bank.”

Additionally, the Board of Directors declared a quarterly cash dividend of $0.07 per share, payable on August 5, 2022, to shareholders of record at the close of business on July 25, 2022. The dividend is equivalent to an annual rate of $0.28 per share or 1.47%, based upon a market price of $19.00 per common share. CEO Dalby explained, “A consistent dividend remains a top priority of the Board of Directors and management, 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. Redwood Capital Bancorp (OTCQB:RWCB) trades on the OTCQB Venture Market for early stage and developing U.S. and international companies. Companies are current in their reporting and undergo an annual verification and management certification process. Investors can find Real-Time quotes and market information 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				%
		6/30/2022		3/31/2022		Change
Balance Sheet Data (at period end)
Total assets		$548,095		$579,542		-5%
Total deposits		500,165		516,200		-3%
Total loans (net)		350,773		337,165		4%
Common equity		36,631		37,327		-2%
Common shares outstanding		1,977,596		1,958,002		1%
Summary of Operations (Current Quarter)
Interest income		4,210		3,864		9%
Interest expense		280		292		-4%
Net Interest Income		3,930		3,572		10%
Non-interest income		1,206		672		79%
Non-interest expense		3,041		3,112		-2%
Net Income before provision		2,095		1,132		85%
Provision for loan losses		-		-		0%
Income before taxes		2,095		1,132		85%
Income taxes/(credit)		567		309		83%
Net Income		1,528		823		86%
Earnings per common share (fully diluted)		$0.77		$0.42		84%
Book value per common share		$18.52		$19.06		-3%
		Period Ended				%
		6/30/2022		6/30/2021		Change
Balance Sheet Data (at period end)
Total assets		$548,095		$578,236		-5%
Total deposits		500,165		526,801		-5%
Total loans (net)		350,773		343,156		2%
Common equity		36,631		37,841		-3%
Common shares outstanding		1,977,596		1,958,002		1%
Summary of Operations (Current Quarter)
Interest income		4,210		4,248		-1%
Interest expense		280		327		-14%
Net Interest Income		3,930		3,921		0%
Non-interest income		1,206		1,153		5%
Non-interest expense		3,041		3,018		1%
Net Income before provision		2,095		2,056		2%
Provision for loan losses		0		35		100%
Income before taxes		2,095		2,021		4%
Income taxes		567		529		7%
Net Income		1,528		1,492		2%
Earnings per common share (fully diluted)		$0.77		$0.76		1%
Book value per common share		$18.52		$19.33		-4%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220727005118/en/

Renee Byers, SVP/CFO, at (707) 444-9849

Source: Redwood Capital Bancorp

FAQ

What were the Q2 2022 earnings for RWCB?

RWCB reported Q2 2022 earnings of $1,528,000, an 86% increase from Q1 2022.

How much is the dividend declared by RWCB?

RWCB declared a quarterly cash dividend of $0.07 per share, payable on August 5, 2022.

What is the earnings per share for RWCB in Q2 2022?

The earnings per share (EPS) for RWCB in Q2 2022 is $0.77, up 84% year-over-year.

What is the total net loans for RWCB as of June 30, 2022?

RWCB reported total net loans of $350.8 million as of June 30, 2022.

How did RWCB's total assets change in Q2 2022?

Total assets decreased by 5% to $548 million in Q2 2022.