Earnings Release – Redwood Capital Bancorp – Year End 2022

By: Redwood Capital Bancorp via Business Wire

February 01, 2023 at 09:03 AM EST

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

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/

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Earnings Release – Redwood Capital Bancorp – Year End 2022

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