EARNINGS RELEASE – May 2, 2016
EUREKA, CALIFORNIA – On May 2, 2016, REDWOOD CAPITAL BANCORP (RWCB.OB), 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, 2016. Redwood Capital Bank, the company’s wholly owned subsidiary, celebrated its twelveyear anniversary by reporting record quarterly earnings and strong growth while the Board of Directors affirmed its standing quarterly dividend.
John Dalby, President and CEO, remarked, “The Board of Directors and management team are delighted with the excellent start in 2016, particularly with regard to strong profitability and yearoveryear loan growth. Additionally, I am pleased to announce, that Redwood Capital Bank has again been awarded the prestigious distinction of being one of California’s Super Premier Performing Banks by The Findley Reports. The rating of Super Premier Performing is the highest designation possible for California community banks to receive and places the bank as a quality leader in the banking industry,” stated Dalby.
The company posted record growth in the major balance sheet categories of assets, loans and deposits. Total assets as of March 31, 2016 were $320.7 million, an increase of 9% from the same period last year. Total loans, net of unearned income, rose to $226.2 million as of March 31, 2016, an increase of 9% over the quarter ended March 31, 2015. Total deposits grew to $293.6 million as of March 31, 2016, an increase of 11% over the March 31, 2015 figure.
Net interest income for the quarter ended March 31, 2016 totaled $2,876,000, up 9% from the $2,630,000 reported for the three months ended March 2015. The company reported record net income after taxes in the first quarter of 2016 of $535,000, up a strong 19% from the $448,000 reported for the first quarter of 2015. The increase was primarily attributed to continued loan growth, exceptional credit quality, and strong cost controls. “Our lending activity continues to be a priority. The current marketplace is highly competitive and challenging, one that we are addressing with a focus on value and an unprecedented customer experience. Our lenders have an unprecedented depth of knowledge regarding Humboldt County’s economic climate and have the ability to structure loan products that are mutually beneficial to both the company and the customers we serve,” concluded Dalby.
Additionally, the Board of Directors declared a quarterly cash dividend of $0.06 per share, payable on May 13, 2016, to shareholders of record at the close of business on May 2, 2016. The dividend is equivalent to an annual rate of $0.24 per share or 2.12%, based upon a market price of $11.33 per common share. Since April 15, 2015, the stock price appreciation combined with dividend payments represents a 7.63% annualized return to shareholders. CEO Dalby explained, “We are pleased to announce a continued dividend as a sign of our belief in the financial strength of the company and our confidence in the ability to profitably grow in the future.”
For more information regarding Redwood Capital Bancorp, please visit our website at www.redwoodcapitalbank.com, contact Fred Moore, CFO, at (707) 4449840, or stop by our headquarters and main office at 402 “G” Street, Eureka, California 95501.
This press release may contain forwardlooking 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 forwardlooking statements, which reflect management’s view only as of the date hereof. The Bank undertakes no obligation to publicly revise these forwardlooking statements to reflect subsequent events or circumstances.