Earnings Release – Redwood Capital Bancorp – Year-End 2024

By: Redwood Capital Bancorp via Business Wire

January 29, 2025 at 09:03 AM EST

10% Increase in Book Value Per Share – Cash Dividend Affirmed

REDWOOD CAPITAL BANCORP (“the Company”) (OTCQX: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, 2024. Redwood Capital Bank (“the Bank”), the company’s wholly owned subsidiary, reported consistent earnings.

President and CEO John Dalby stated, “As we conclude another successful year at the Bank, I am pleased to share our year-end earnings which reflect the strength and stability of our community-focused institution. Our strong liquidity and robust capital position demonstrate our continued commitment to financial soundness, ensuring we remain a trusted partner for our customers and shareholders.”

Dalby added, “Redwood Capital Bank reported a strong performance for the year-ending 2024, with earnings per share reaching $2.69, reflecting a solid 9.59% growth in tangible book value. Despite a challenging market environment, the Bank maintained a fortress balance sheet characterized by robust liquidity and capital, positioning it well for future growth. At year-end, the market price closed at $21.26, down 9.8% from the previous year, reflecting broader market conditions. In addition to its strong on-balance sheet performance, the Bank has further bolstered its financial position with more than $66 million in off-balance sheet deposits, providing significant additional liquidity and reinforcing its stability in a competitive market.”

Total assets as of December 31, 2024, were $528 million, a 2% increase over December 31, 2023. Total deposits as of December 31, 2024, were $471.7 million, a 2.5% increase over December 31, 2023. Total loans as of December 31, 2024, net of unearned income, were $382.6 million as of December 31, 2024.

Consolidated net income before taxes for the twelve months ended December 31, 2024, totaled $7.2 million. The Company increased the book value per share by 10% to $25.83 per share as of December 31, 2024.

Additionally, the Board of Directors declared a quarterly cash dividend of $0.08 per share, payable on February 11, 2025, to shareholders of record at the close of business on January 27, 2025. The dividend is equivalent to an annual rate of $0.32 per share or 1.51%, based upon the $21.26 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 (OTCQX:RWCB) trades on the OTCQX Best Market. Companies meet high financial standards, follow best practice corporate governance, demonstrate compliance with U.S. securities laws and have a professional third-party sponsor introduction. Investors can find current financial disclosure and Real-Time Level 2 quotes 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					%
	12/31/2024			9/30/2024		Change

Balance Sheet Data (at period end)
Total assets	$	528,261		$	534,174	-1.11	%
Total deposits		471,708			470,547	0.25	%
Total loans (net)		382,638			380,926	0.45	%
Common equity		50,572			50,868	-0.58	%
Common shares outstanding		1,958,253			1,960,374	-0.11	%

Summary of Operations (Current Quarter)
Interest income		6,016			6,065	-0.81	%
Interest expense		1,322			1,403	-5.77	%
Net Interest Income		4,694			4,662	0.69	%
Non-interest income		778			882	-11.79	%
Non-interest expense		3,864			3,495	10.56	%
Net Income before provision		1,608			2,049	-21.52	%
Provision for loan losses		(38	)		151	-125.17	%
Income before taxes		1,646			1,898	-13.28	%
Income taxes		452			525	-13.90	%
Net Income		1,194			1,373	-13.04	%
Earnings per share (fully diluted)	$	0.61		$	0.70	-12.94	%
Book value per common share	$	25.83		$	25.95	-0.47	%


	Period Ended					%
	12/31/2024			12/31/2023		Change

Balance Sheet Data (at period end)
Total assets	$	528,261		$	518,105	1.96	%
Total deposits		471,708			460,434	2.45	%
Total loans (net)		382,638			388,424	-1.49	%
Common equity		50,572			45,709	10.64	%
Common shares outstanding		1,958,253			1,939,192	0.98	%

Summary of Operations (Current Quarter)
Interest income		6,016			5,674	6	%
Interest expense		1,322			708	87	%
Net Interest Income		4,694			4,966	-5	%
Non-interest income		778			790	-2	%
Non-interest expense		3,864			3,585	8	%
Net Income before provision		1,608			2,171	-26	%
Provision for loan losses		(38	)		-	0	%
Income before taxes		1,646			2,171	-24	%
Income taxes		452			610	-26	%
Net Income		1,194			1,561	-24	%
Earnings per share (fully diluted)	$	0.61		$	0.80	-24	%
Book value per common share	$	25.83		$	23.57	10	%

Summary of Operations (Year to Date)
Interest income		23,509			21,437	10	%
Interest expense		5,161			2,102	146	%
Net Interest Income		18,348			19,335	-5	%
Non-interest income		3,535			4,456	-21	%
Non-interest expense		14,424			13,987	3	%
Net Income before provision		7,459			9,804	-24	%
Provision for loan losses		233			58	302	%
Income before taxes		7,226			9,746	-26	%
Income taxes		1,954			2,702	-28	%
Net Income		5,272			7,044	-25	%
Earnings per share (fully diluted)	$	2.69		$	3.63	-26	%
Book value per common share	$	25.83		$	23.57	10	%

View source version on businesswire.com: https://www.businesswire.com/news/home/20250129748925/en/

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Earnings Release – Redwood Capital Bancorp – Year-End 2024

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