Earnings Release – Redwood Capital Bancorp – Year End 2022

Rhea-AI Summary

On February 1, 2023, Redwood Capital Bancorp (OTCQB:RWCB) announced record growth and earnings for the fiscal year 2022. The company reported total assets of $521 million and total deposits of $471 million. Total loans increased by 14% year-over-year to $379.5 million. Consolidated net income before taxes reached $8.4 million, reflecting a 10% increase from 2021. The fourth quarter yielded a net income of $1.9 million, contributing to an annual growth of 8%. In recognition of its performance, the company declared a quarterly cash dividend of $0.08 per share to shareholders, payable on February 14, 2023.

Positive

• Total loans increased by 14% year-over-year to $379.5 million.
• Consolidated net income before taxes rose by 10% from the previous year to $8.4 million.
• Quarterly cash dividend of $0.08 per share declared, equivalent to an annual rate of $0.32, representing a yield of 1.73%.

Negative

• Net income for the fourth quarter decreased to $1.9 million from $6 million in the prior year.

Company Experiences Record Growth and Earnings in 2022 – Cash Dividend Affirmed

EUREKA, Calif.--(BUSINESS WIRE)-- On February 1, 2023, 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 twelve month periods ended December 31, 2022. Redwood Capital Bank, the company’s wholly owned subsidiary, reported record earnings and unprecedented loan growth.

President and CEO John Dalby stated, “In 2022, Redwood Capital Bank again received the ‘5-Star’ rating from Bauer Financial and ‘Super Premier Performing’ from The Findley Reports. These very prestigious awards are presented by two of the most well-known and respected financial rating agencies within the banking trade. We are honored to have received these awards and believe they are a reflection of the hard work and dedication of our entire team.”

Total assets as of December 31, 2022, were $521 million and total deposits stood at $471 million as of December 31, 2022. Total loans as of December 31, 2022, net of unearned income, were $379.5 million, an increase of 6% over the September 30, 2022 figure of $359.2 million and a 14% increase over the December 31, 2021 total loans of $332.3 million.

Consolidated net income before taxes for the three and twelve months ended December 31, 2022 totaled $2.7 million and $8.4 million, an increase of 13% from the figure reported for the three months ended September 30, 2022 and a 10% increase from the figure reported for the twelve months ended December 31, 2021. The company also reported net income for the fourth quarter of 2022 of $1.9 million, while net income for the year ended December 31, 2021 was reported as $6 million. The annual earnings represented an 8% increase from the year ended December 31, 2021. These record earnings are a result of robust loan production, strong non-interest income and controlled expenses.

President and CEO, John Dalby added, “On behalf of the Board of Directors and management team, I would like to congratulate the staff on a record year. We could not be more proud of the entire Redwood Capital Bank team.”

Additionally, the Board of Directors declared a quarterly cash dividend of $0.08 per share, payable on February 14, 2023 to shareholders of record at the close of business on January 30, 2023. The dividend is equivalent to an annual rate of $0.32 per share or 1.73%, based upon a market price as of year-end.

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 (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 Company 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				%
		12/31/2022		9/30/2022		Change
Balance Sheet Data (at period end)
Total assets		$521,349		$553,682		-6%
Total deposits		471,435		507,284		-7%
Total loans (net)		379,493		359,209		6%
Common equity		39,644		35,804		11%
Common shares outstanding		1,977,596		1,977,596		0%
Summary of Operations (Current Quarter)
Interest income		5,183		4,861		7%
Interest expense		247		202		22%
Net Interest Income		4,936		4,659		6%
Non-interest income		1,343		1,028		31%
Non-interest expense		3,412		3,186		7%
Net Income before provision		2,868		2,501		15%
Provision for loan losses		150		90		67%
Income before taxes		2,719		2,411		13%
Income taxes		777		682		14%
Net Income		1,942		1,729		12%
Earnings per share (fully diluted)		$0.98		$0.87		12%
Book value per common share		$20.05		$18.10		11%
		Period Ended				%
		12/31/2022		12/31/2021		Change
Balance Sheet Data (at period end)
Total assets		$521,349		$595,323		-12%
Total deposits		471,435		541,556		-13%
Total loans (net)		379,493		332,321		14%
Common equity		39,644		40,178		-1%
Common shares outstanding		1,977,596		1,958,002		1%
Summary of Operations (Current Quarter)
Interest income		5,183		4,204		23%
Interest expense		247		303		-18%
Net Interest Income		4,936		3,901		27%
Non-interest income		1,343		976		38%
Non-interest expense		3,412		3,083		11%
Net Income before provision		2,868		1,794		60%
Provision for loan losses		150		-		0%
Income before taxes		2,719		1,794		52%
Income taxes		777		501		55%
Net Income		1,942		1,293		50%
Earnings per share (fully diluted)		$0.98		$0.66		49%
Book value per common share		$20.05		$20.52		-2%
Summary of Operations (Year to Date)
Interest income		18,118		17,171		6%
Interest expense		1,021		1,286		-21%
Net Interest Income		17,097		15,885		8%
Non-interest income		4,250		3,976		7%
Non-interest expense		12,751		12,021		6%
Net Income before provision		8,596		7,840		10%
Provision for loan losses		240		140		71%
Income before taxes		8,356		7,700		9%
Income taxes		2,335		2,108		11%
Net Income		6,022		5,592		8%
Earnings per share (fully diluted)		$3.05		$2.86		7%
Book value per common share		$20.05		$20.52		-2%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230201005107/en/

Renee Byers, CFO, (707) 444-9849

Source: Redwood Capital Bancorp

FAQ

What were Redwood Capital Bancorp's earnings for 2022?

Redwood Capital Bancorp reported consolidated net income before taxes of $8.4 million for the year ended December 31, 2022.

What is the dividend payout date for Redwood Capital Bancorp?

The quarterly cash dividend of $0.08 per share is payable on February 14, 2023, to shareholders of record as of January 30, 2023.

How much did Redwood Capital Bancorp's total loans increase?

Total loans increased by 14% year-over-year to $379.5 million as of December 31, 2022.

What was Redwood Capital Bancorp's total assets as of December 31, 2022?

As of December 31, 2022, Redwood Capital Bancorp's total assets were reported at $521 million.