Earnings Release – Redwood Capital Bancorp – Third Quarter, 2021

Rhea-AI Summary

Redwood Capital Bancorp (OTCQB:RWCB) reported significant growth in its unaudited financial results for the three and nine months ending September 30, 2021. Total assets reached $589.3 million, a 20% increase year-over-year. Total deposits also rose by 20% to $536.4 million. Net income for the first nine months of 2021 was $4.3 million, up from $2.8 million in 2020. The bank was named the top SBA lender in Humboldt County, processing 32% of all SBA loans. A quarterly cash dividend of $0.07 per share was declared, reflecting a 1.41% yield based on the current stock price.

Positive

• Total assets increased by 20% year-over-year to $589.3 million.
• Net income rose to $4.3 million for the first nine months, up from $2.8 million in 2020.
• The bank was named top SBA lender in Humboldt County, covering 32% of all SBA loans.
• Quarterly cash dividend of $0.07 per share, yielding 1.41% annually.

Negative

• None.

Company Reports Record Growth and Continued Dividend

Redwood Capital Bank Named Top Small Business Association Lender

EUREKA, Calif.--(BUSINESS WIRE)-- On October 27, 2021, 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, 2021. Redwood Capital Bank, the company’s wholly owned subsidiary, reported record earnings.

Total assets as of September 30, 2021 were $589.3 million; an increase of 2% over the June 30, 2021 and a significant increase of 20% from the September 30, 2020 reported figures. Total deposits stood at $536.4 million as of September 30, 2021, an increase of 2% over June 30, 2021 and an impressive increase of 20% over the September 30, 2020 figures. Total loans as of September 30, 2021, net of unearned income, were $339.6 million.

Net interest income for the three and nine months ended September 30, 2021 totaled $4,136,000 and $11,984,000 respectively, representing an increase of 5% over the three months ended June 30, 2021 and an increase of 14% during the nine months ended September 30, 2020. The company also reported net income for the first nine months of 2021 of $4,299,000 while earnings for the first nine months of 2020 totaled $2,837,000. Book value per common share, a common measurement of shareholder value, stood at $20.02 as of September 30, 2021, a 4% increase over the previous quarter and a 14% increase over the September 30, 2020 amount.

Renee Byers, Senior Vice President and Chief Financial Officer, commented, “The Board of Directors and management anticipate Redwood Capital Bank’s positive momentum to carry through the remainder of 2021. Our dedicated staff continue to perform at a very high level and their efforts and talents are reflected in the financial results of the company. The balance sheet remains strong and we are well positioned for the future.”

Jennifer Budwig, Senior Vice President and Chief Lending Officer, added, “I am pleased to announce that Redwood Capital Bank has once again been named the number one Small Business Association (SBA) lender in Humboldt County, funding the most SBA loans in the SBA fiscal year 2021, representing 32% of all SBA loans in Humboldt County. We are sincerely honored for this distinction which demonstrates Redwood Capital Bank’s financial strength and commitment to our community.”

Additionally, the Board of Directors declared a quarterly cash dividend of $0.07 per share, payable on November 10, 2021, to shareholders of record at the close of business on October 25, 2021. The dividend payment is equivalent to an annual rate of $0.28 per share or 1.41%, based upon a market price of $19.83 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.

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				%
				9/30/2021		6/30/2021		Change
Balance Sheet Data (at period end)
	Total assets			$589,388		$578,236		2%
	Total deposits			536,473		526,801		2%
	Total loans (net)			339,556		343,156		-1%
	Common equity			39,193		37,841		4%
	Common shares outstanding			1,958,002		1,958,002		0%
Summary of Operations (Current Quarter)
	Interest income			4,459		4,248		5%
	Interest expense			323		327		-1%
	Net Interest Income			4,136		3,921		5%
	Non-interest income			833		1,153		-28%
	Non-interest expense			3,039		3,018		1%
	Net Income before provision			1,930		2,056		-6%
	Provision for loan losses			-		35		0%
	Income before taxes			1,930		2,021		-5%
	Income taxes			540		529		2%
	Net Income			1,390		1,492		-7%
	Earnings per share (fully diluted)			$0.71		$0.76		-7%
	Book value per common share			$20.02		$19.33		4%
				Period Ended				%
				9/30/2021		9/30/2020		Change
Balance Sheet Data (at period end)
	Total assets			$589,388		$491,997		20%
	Total deposits			536,473		446,136		20%
	Total loans (net)			339,556		354,547		-4%
	Common equity			39,193		34,080		15%
	Common shares outstanding			1,958,002		1,940,087		1%
Summary of Operations (Current Quarter)
	Interest income			4,459		4,131		8%
	Interest expense			323		363		-11%
	Net Interest Income			4,136		3,768		10%
	Non-interest income			833		1,062		-22%
	Non-interest expense			3,039		2,748		11%
	Net Income before provision			1,930		2,082		-7%
	Provision for loan losses			-		361		100%
	Income before taxes			1,930		1,721		12%
	Income taxes			540		527		2%
	Net Income			1,390		1,194		16%
	Earnings per share (fully diluted)			$0.71		$0.62		15%
	Book value per common share			$20.02		$17.57		14%
Summary of Operations (Year to Date)
	Interest income			12,967		11,705		11%
	Interest expense			983		1,160		-15%
	Net Interest Income			11,984		10,545		14%
	Non-interest income			3,000		2,334		29%
	Non-interest expense			8,937		8,221		9%
	Net Income before provision			6,047		4,658		30%
	Provision for loan losses			140		608		-77%
	Income before taxes			5,907		4,050		46%
	Income taxes			1,607		1,213		32%
	Net Income			4,299		2,837		52%
	Earnings per share (fully diluted)			$2.20		$1.46		50%
	Book value per common share			$20.02		$17.57		14%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20211027005072/en/

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

 

Source: Redwood Capital Bancorp

FAQ

What were Redwood Capital Bancorp's total assets as of September 30, 2021?

Total assets were $589.3 million.

How much did Redwood Capital Bancorp earn in the first nine months of 2021?

The company reported a net income of $4.3 million.

What is the cash dividend declared by Redwood Capital Bancorp?

The quarterly cash dividend is $0.07 per share.

What percentage of SBA loans in Humboldt County did Redwood Capital Bank fund?

Redwood Capital Bank funded 32% of all SBA loans.

When will the dividend be paid to shareholders?

The dividend will be payable on November 10, 2021.