Earnings Release – Redwood Capital Bancorp – Third Quarter, 2022

Rhea-AI Summary

Redwood Capital Bancorp (OTCQB:RWCB) announced its unaudited financial results for the three and nine months ended September 30, 2022. Total assets reached $553.7 million, while total deposits slightly increased to $507.3 million. Net interest income for the three months totaled $4.66 million, marking a 13% rise from the previous quarter. The company reported a net income of $4.08 million for the first nine months of 2022. In light of strong performance, the quarterly dividend was raised from $0.07 to $0.08 per share, effective November 14, 2022.

Positive

• Increased quarterly dividend by 14.3% from $0.07 to $0.08 per share.
• Total assets rose to $553.7 million, up 1% from June 30, 2022.
• Net interest income increased by 13% over the previous quarter.
• Net income for the first nine months of 2022 was $4.08 million.

Negative

• None.

Company Reports Increased Dividend

EUREKA, Calif.--(BUSINESS WIRE)-- On November 2, 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 and nine month period ended September 30, 2022. Redwood Capital Bank, the company’s wholly owned subsidiary reported consistent earnings.

President and CEO, John E. Dalby remarked, “Redwood Capital Bancorp is well positioned to thrive despite the potential recessionary climate. The company is well-capitalized, has significant liquidity and limited market risk exposure within the investment portfolio. The leverage capital ratio of the underlying bank is 9.90%, well above the regulatory minimum of 5.00%. Redwood Capital Bank maintains a strong liquidity position both on and off balance sheet. Through IntraFi, Redwood Capital Bank has moved $116 million in excess deposits off balance sheet. The majority of these deposits can be returned to the balance sheet within 24 hours if ever needed. Credit quality remains excellent and continues to improve.”

Total assets as of September 30, 2022 were $553.7 million; an increase of 1% over the June 30, 2022. Total deposits stood at $507.3 million as of September 30, 2022, a slight increase over June 30, 2022. Total loans as of September 30, 2022, net of unearned income, were $359.2 million, an increase of 2% over June 30, 2022.

Net interest income for the three and nine months ended September 30, 2022 totaled $4,659,000 and $12,161,000 respectively, representing an increase of 13% over the three months ended June 30, 2022. The company also reported net income for the first nine months of 2022 of $4,080,000. Book value per common share, a common measurement of shareholder value, was $18.10 as of September 30, 2022.

Dalby added, “Based on the strength of the balance sheet and consistent strong earnings, the Board of Directors has increased the quarterly dividend from $0.07 per share to $0.08 per share. This is a 14.3% increase from the previous quarter. The dividend is payable on November 14, 2022, to shareholders of record at the close of business on October 31, 2022. The dividend payment is equivalent to an annual rate of $0.32 per share or 1.84%, based upon a market price of $17.40 per common share.”

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.

A video presentation featuring the company’s financial performance for 2021 through June 30, 2022, can be found at: www.redwoodcapitalbank.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 - except share data)
		Period Ended				%
		9/30/2022		6/30/2022		Change
Balance Sheet Data (at period end)
Total assets		$553,682		$548,095		1%
Total deposits		507,284		500,165		1%
Total loans (net)		359,209		350,773		2%
Common equity		35,804		36,631		-2%
Common shares outstanding		1,977,596		1,977,596		0%
Summary of Operations (Current Quarter)
Interest income		4,861		4,210		15%
Interest expense		202		280		-28%
Net Interest Income		4,659		3,930		19%
Non-interest income		1,028		1,206		-15%
Non-interest expense		3,186		3,041		5%
Net Income before provision		2,501		2,095		19%
Provision for loan losses		90		0		100%
Income before taxes		2,411		2,095		15%
Income taxes		682		567		20%
Net Income		1,729		1,528		13%
Earnings per share (fully diluted)		$0.87		$0.77		13%
Book value per common share		$18.10		$18.52		-2%
		Period Ended				%
		9/30/2022		9/30/2021		Change
Balance Sheet Data (at period end)
Total assets		$553,682		$589,388		-6%
Total deposits		507,284		536,473		-5%
Total loans (net)		359,209		339,556		6%
Common equity		35,804		39,193		-9%
Common shares outstanding		1,977,596		1,958,002		1%
Summary of Operations (Current Quarter)
Interest income		4,861		4,459		9%
Interest expense		202		323		-37%
Net Interest Income		4,659		4,136		13%
Non-interest income		1,028		833		23%
Non-interest expense		3,186		3,039		5%
Net Income before provision		2,501		1,930		30%
Provision for loan losses		90		-		100%
Income before taxes		2,411		1,930		25%
Income taxes		682		540		26%
Net Income		1,729		1,390		24%
Earnings per share (fully diluted)		$0.87		$0.71		23%
Book value per common share		$18.10		$20.02		-10%
Summary of Operations (Year to Date)
Interest income		12,935		12,967		0%
Interest expense		774		983		-21%
Net Interest Income		12,161		11,984		1%
Non-interest income		2,907		3,000		-3%
Non-interest expense		9,339		8,937		4%
Net Income before provision		5,729		6,047		-5%
Provision for loan losses		90		140		-36%
Income before taxes		5,639		5,907		-5%
Income taxes		1,558		1,607		-3%
Net Income		4,080		4,299		-5%
Earnings per share (fully diluted)		$2.06		$2.20		-6%
Book value per common share		$18.10		$20.02		-10%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20221102005151/en/

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

Source: Redwood Capital Bancorp

FAQ

What are the latest financial results of Redwood Capital Bancorp for Q3 2022?

Redwood Capital Bancorp reported total assets of $553.7 million and net income of $4.08 million for the first nine months of 2022.

When is the increased dividend for RWCB payable?

The increased dividend of $0.08 per share is payable on November 14, 2022, to shareholders of record as of October 31, 2022.

How much did RWCB's net interest income grow in Q3 2022?

Net interest income for the three months ended September 30, 2022, totaled $4.66 million, a 13% increase from the previous quarter.

What is the book value per share for RWCB as of September 30, 2022?

The book value per common share for Redwood Capital Bancorp was $18.10 as of September 30, 2022.