EUREKA, Calif., July 29, 2016 (GLOBE NEWSWIRE) -- On July 29, 2016, REDWOOD CAPITAL BANCORP (OTCBB: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, 2016. Redwood Capital Bank, the company’s wholly owned subsidiary reported record quarterly
earnings while the Board of Directors affirmed a continuation of its quarterly dividend.
The company posted modest growth in the major balance sheet categories of assets, loans and deposits. Total assets as of
June 30, 2016 were $323.5 million, an increase of 1% from the prior quarter and an increase of 6% from the same period last year.
Total loans, net of unearned income, rose to $229.1 million as of June 30, 2016, an increase of 1% from the March 31, 2016 figures
and an increase of 8% over the quarter ended June 30, 2015. Lastly, total deposits grew to $295.7 million as of June 30,
2016, an increase of 1% over the prior quarter and 7% higher than the June 30, 2015 reported figure.
Net interest income for the quarter ended June 30, 2016 totaled $2,930,000, up 2% from the $2,876,000 reported for the three
months ended March 31, 2016 and up 8% from the $2,722,000 reported for the three months ended June 30, 2015. The company also
reported record net income after taxes and provision expenses in the second quarter of 2016 of $718,000, up 34% reported for the
three months ended March 31, 2016 and up 26% from the $572,000 reported for the second quarter of 2015. The increase was
primarily attributed to consistent loan growth, increased Fannie Mae loan originations, strong cost controls and excellent credit
quality.
Additionally, it was announced that effective July 20, 2016, Founding Chairman of the Board of Directors, Dr. John E. Burke
retired as Chairman of the Board of Directors. Dr. Burke was one of the early visionaries who helped conceptualize what
Redwood Capital Bank is today. Dr. Burke will remain an active member of the Board in the role of Director.
Vice-Chairman, John J. Gierek, Jr. has assumed the position of Chairman of the Board of Directors. J. William McAuley has
been elected by the Board of Directors to serve as Vice Chairman.
John Dalby, President and CEO, remarked, “On behalf of the Board of Directors, senior management and the staff of Redwood
Capital Bank, I would like to thank Dr. Burke for his dedication and service to this company as Founding Chairman of the Board of
Directors. He represents a steady voice that guided the company for over a decade through many milestones, continued growth and
success. He was a leading advocate for creating the bank’s Board Governance Policies which have helped the Board of Directors
maintain a high standard of continued excellence. These policies have since been used as a model for other community banks
throughout the country.”
Dr. Burke commented, “It has been a privilege and honor to serve as the Founding Chairman of the Board of Directors of Redwood
Capital Bank. The soul of Redwood Capital Bank is that it is from the community, for the community. I am confident that
the Board will continue to deliver strategic direction for the company and remain ever-mindful of the interests of our
shareholders. I congratulate our new Chairman, John Gierek, Jr., and Vice Chairman, Bill McAuley and look forward to this new
chapter for both Redwood Capital Bank and the Board of Directors.”
Finally, the Board of Directors declared a quarterly cash dividend of $0.06 per share, payable on August 10, 2016, to
shareholders of record at the close of business on July 29, 2016. The dividend is equivalent to an annual rate of $0.24 per
share or 2.04%, based upon a market price of $11.75 per common share. CEO Dalby explained, “We are pleased to continue our dividend
payments as a sign of our belief in the financial strength of the company while enhancing the return to those that have entrusted
us with their investment. We remain confident that our first half performance for 2016 is indicative of the opportunities
available to us over the remainder of the year and beyond,” stated Dalby.
For more information regarding Redwood Capital Bancorp, please visit our website at www.redwoodcapitalbank.com, contact Fred Moore, CFO, at (707) 444-9840, or stop by our
headquarters and main office at 402 “G” Street, Eureka, California 95501.
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 |
% |
|
|
|
|
6/30/2016 |
3/31/2016 |
Change |
|
|
|
|
|
|
|
|
Balance Sheet Data (at period end) |
|
|
|
|
|
Total assets |
|
$ |
323,542 |
|
$ |
320,658 |
|
|
1 |
% |
|
|
Total deposits |
|
|
295,653 |
|
|
293,580 |
|
|
1 |
% |
|
|
Total loans (net) |
|
|
229,108 |
|
|
226,192 |
|
|
1 |
% |
|
|
Common equity |
|
|
20,803 |
|
|
20,098 |
|
|
4 |
% |
|
|
Common shares outstanding |
|
|
1,903,575 |
|
|
1,882,843 |
|
|
1 |
% |
|
|
|
|
|
|
|
|
Summary of Operations (Current Quarter) |
|
|
|
|
|
|
Interest income |
|
|
3,132 |
|
|
3,086 |
|
|
1 |
% |
|
|
Interest expense |
|
|
202 |
|
|
210 |
|
|
-4 |
% |
|
|
Net Interest Income |
|
|
2,930 |
|
|
2,876 |
|
|
2 |
% |
|
|
Non-interest income |
|
|
458 |
|
|
352 |
|
|
30 |
% |
|
|
Non-interest expense |
|
|
2,209 |
|
|
2,197 |
|
|
1 |
% |
|
|
Net Income before provision |
|
1,179 |
|
|
1,031 |
|
|
14 |
% |
|
|
Provision for loan losses |
|
0 |
|
|
90 |
|
|
-100 |
% |
|
|
Income before taxes |
|
|
1,179 |
|
|
941 |
|
|
25 |
% |
|
|
Income taxes/(credit) |
|
|
461 |
|
|
406 |
|
|
14 |
% |
|
|
Net Income |
|
|
718 |
|
|
535 |
|
|
34 |
% |
|
|
Earnings per common share (fully diluted) |
|
$ |
0.38 |
|
$ |
0.28 |
|
|
33 |
% |
|
|
Book value per common share |
|
$ |
10.93 |
|
$ |
10.67 |
|
|
2 |
% |
|
|
|
|
|
|
|
|
|
|
|
Period Ended |
% |
|
|
|
|
6/30/2016 |
6/30/2015 |
Change |
|
|
|
|
|
|
|
|
Balance Sheet Data (at period end) |
|
|
|
|
|
Total assets |
|
$ |
323,542 |
|
$ |
304,202 |
|
|
6 |
% |
|
|
Total deposits |
|
|
295,653 |
|
|
275,428 |
|
|
7 |
% |
|
|
Total loans (net) |
|
|
229,108 |
|
|
212,922 |
|
|
8 |
% |
|
|
Common equity |
|
|
20,803 |
|
|
18,385 |
|
|
13 |
% |
|
|
Common shares outstanding |
|
|
1,903,575 |
|
|
1,882,143 |
|
|
1 |
% |
|
|
|
|
|
|
|
|
Summary of Operations (Current Quarter) |
|
|
|
|
|
|
Interest income |
|
|
3,132 |
|
|
2,896 |
|
|
8 |
% |
|
|
Interest expense |
|
|
202 |
|
|
174 |
|
|
16 |
% |
|
|
Net Interest Income |
|
|
2,930 |
|
|
2,722 |
|
|
8 |
% |
|
|
Non-interest income |
|
|
458 |
|
|
348 |
|
|
32 |
% |
|
|
Non-interest expense |
|
|
2,209 |
|
|
2,026 |
|
|
9 |
% |
|
|
Net Income before provision |
|
1,179 |
|
|
1,044 |
|
|
13 |
% |
|
|
Provision for loan losses |
|
0 |
|
|
120 |
|
|
-100 |
% |
|
|
Income before taxes |
|
|
1,179 |
|
|
924 |
|
|
28 |
% |
|
|
Income taxes |
|
|
461 |
|
|
352 |
|
|
31 |
% |
|
|
Net Income |
|
|
718 |
|
|
572 |
|
|
26 |
% |
|
|
Earnings per common share (fully diluted) |
|
$ |
0.38 |
|
$ |
0.30 |
|
|
24 |
% |
|
|
Book value per common share |
|
$ |
10.93 |
|
$ |
9.77 |
|
|
12 |
% |
|
|
|
|
|
|
|
|