EUREKA, CALIFORNIA – January 29, 2020, 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 and twelve month periods ended December 31, 2019. The community bank holding company reaffirmed its ongoing quarterly cash dividend.
President and CEO John Dalby stated, “In 2019, Redwood Capital Bank again received several very prestigious awards, including the “5-Star” rating from Bauer Financial and “Super Premier Performing” from The Findley Reports. These are two of the most well-known and respected financial rating agencies within the banking trade. At the national level, Redwood Capital Bank was one of 85 banks chosen as a “Best Bank to Work For” by American Banker Magazine and Best Companies Group. Additionally, at the 2019 Greater Eureka Chamber of Commerce Annual Dinner, Redwood Capital Bank received the Large Business of the Year Award for its contributions to the community, top-notch customer service, positive work environment, investments in the local economy and commitment to giving back to the community. 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, 2019 were $368 million, a decrease of 2% over the September 30, 2019 figure. Total deposits stood at $325.7 million as of December 31, 2019, 2% less than the September 30, 2019 figures and 3% less than the December 31, 2018 numbers. Total loans as of December 31, 2019, net of unearned income, were $278 million, a slight increase of 2% from the prior quarter.
Consolidated net income before taxes for the three and twelve months ended December 31, 2019 totaled $1,090,000 and $5,639,000, down 38% from the figure reported for the three months ended September 30, 2019 and down just slightly by 1% from the figure reported for the twelve months ended December 31, 2018. The company also reported net income for the fourth quarter of 2019 of $818,000, while net income for the year ended December 31, 2019 was reported as $4,114,000. The earnings represented a 35% decrease over the September 30, 2019 quarter and a slight decrease of 1% from the year ended December 31, 2018. The strong performance in net income before taxes during the year are attributed to consistent high quality loans, and strong cost controls.
Additionally, the Board of Directors declared a quarterly cash dividend of $.07 per share, payable on February 11, 2020 to shareholders of record at the close of business on January 27, 2020. The dividend is equivalent to an annual rate of $0.28 per share or 1.50%, based upon a market price of $18.62 per common share.
“Redwood Capital Bancorp continues to focus on building its fortress balance sheet through continued improvement of the already excellent loan quality, increased capital position and high liquidity positions. The staff continues to provide excellence in service and performance. I could not be more proud of what they have accomplished,” Dalby concluded.
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.
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.