EUREKA, Calif., April 26, 2017 (GLOBE NEWSWIRE) -- On April 26, 2017, 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 March 31, 2017. Redwood Capital Bank, the company’s wholly owned subsidiary, celebrated its thirteen-year anniversary by reporting record quarterly earnings and strong loan growth, while the Board of Directors affirmed its standing quarterly dividend.
John Dalby, President and CEO, remarked, “Management and the Board of Directors are delighted with our excellent start in 2017. We remain grateful to our staff for their outstanding work and to our customers and shareholders for the relationships we have developed and fostered over the past thirteen years. In comparison to last year’s first quarter, we have seen significant earnings growth (28%) compared to asset growth of 1%. This is reflective of increases in the efficiency of operations throughout the institution. Loans grew year-over-year by 10% which has driven greater net interest revenue.”
Dalby noted that the company’s long-term track record of strong performance has not gone unnoticed, adding, “Consistent performance has resulted in consistent recognition. Once again, Redwood Capital Bank has been recognized by the financial industry. Congratulations to the Redwood Capital Bank staff on the receipt of the Findley Reports rating of Super Premier Performing status, as well as the 5-Star rating from Bauer Financial. Both ratings are the highest given from two of the most well-known and respected bank rating firms within the industry.”
The company again posted growth in the major balance sheet categories of assets, loans and deposits. Total assets as of March 31, 2017 were $324.5 million, a slight increase of 1% from the same period last year. Total loans, net of unearned income, grew sharply to $249.2 million as of March 31, 2017, an increase of 10% over the quarter ended March 31, 2016. Total deposits grew to $295.6 million as of March 31, 2017, an increase of 1% over the March 31, 2016 figure.
Net interest income for the quarter ended March 31, 2017 totaled $2,946,000, up 2% from the $2,876,000 reported for the three months ended March 2016. The company reported record net income after taxes in the first quarter of 2017 of $683,000, up a strong 28% from the $535,000 reported for the first quarter of 2016. The increase was primarily attributed to continued loan growth, exceptional credit quality and strong cost controls.
Additionally, the Board of Directors declared a quarterly cash dividend of $0.06 per share, payable on May 15, 2017, to shareholders of record at the close of business on May 1, 2017. The dividend is equivalent to an annual rate of $0.24 per share or 1.37%, based upon a market price of $17.50 per common share. Since April 15, 2016, the stock price appreciation combined with dividend payments represents a 61.27% annualized return to shareholders. CEO Dalby explained, “We are very pleased to continue providing our shareholders with a cash dividend and appreciate their ongoing faith in Redwood Capital Bancorp.”
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 - except share data)|
|Balance Sheet Data (at period end)|
|Total loans (net)||249,248||226,192||10||%|
|Common shares outstanding||1,903,575||1,882,843||1||%|
|Summary of Operations (Year to Date)|
|Net Interest Income||2,946||2,876||2||%|
|Net Income before provision||1,116||1,031||8||%|
|Provision for loan losses||-||90||-100||%|
|Income before taxes||1,116||941||19||%|
|Earnings per share (fully diluted)||$0.36||$0.28||26||%|
|Book value per common share||$11.83||$10.67||11||%|
Source:Redwood Capital Bank