Nonrecurring Tax Adjustment in 4th Quarter – Cash Dividend Affirmed

EUREKA, Calif., Jan. 31, 2018 (GLOBE NEWSWIRE) -- 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 and twelve month periods ended December 31, 2017.  The community bank holding company reported a nonrecurring tax expense adjustment while reaffirming its ongoing quarterly cash dividend.

President and CEO John Dalby stated, “The Board of Directors and management team are pleased with the company’s financial and operating performance for 2017.  Redwood Capital Bank’s service-first and solutions-oriented approach to banking enabled us to further expand existing client relationships and forge new ones.  Throughout 2017, we continued to move the company forward by organically growing loans and deposits, while strengthening the core mission of re-investing in our local community.”

Total assets as of December 31, 2017 were $342.2 million, a decrease of 9% over the September 30, 2017 figure and a modest increase of 3% over the December 31, 2016 reported figures.  Total deposits stood at $311.7 million as of December 31, 2017, 9% less than the September 30, 2017 figures and 3% higher than the December 31, 2016 numbers.  The company again reported loan growth for the year while loans shrank slightly in the fourth quarter.  Total loans as of December 31, 2017, net of unearned income, were $255.2 million, a slight decrease of 1% from the prior quarter and an increase of 4% over the year ended December 31, 2016.

Consolidated net income before taxes for the three and twelve months ended December 31, 2017 totaled $1,477,000 and $5,031,000, up 9% from the figure reported for the three months ended September 30, 2017 and up a stout 12% from the figure reported for the twelve months ended December 31, 2016.  The company also reported net income for the fourth quarter of 2017 of $403,000, while net income for the year ended December 31, 2017 was reported as $2,565,000.  The earnings represented a 50% decrease over the September 30, 2017 quarter and a slight decrease of 5% from the year ended December 31, 2016.  The decrease was associated with a one-time non-cash charge to income tax expense of approximately $460,000 in the fourth quarter as the company revalued its deferred tax assets in preparation for lower federal income tax rates moving forward.  The strong performance in net income before taxes during the fourth quarter and full year are attributed to consistent, high quality loan growth, outstanding Fannie Mae (FNMA) loan originations, and strong cost controls. 

Additionally, the Board of Directors declared a quarterly cash dividend of $.065 per share, payable on February 12, 2018 to shareholders of record at the close of business on January 30, 2018.  The dividend is equivalent to an annual rate of $0.26 per share or 1.43%, based upon a market price of $17.43 per common share.  Since February 1, 2017 the rise in the company’s stock price, combined with dividends, has generated a total return of 17.8%.

CEO Dalby explained, “We are delighted to announce a continued dividend as a sign the financial strength of the company.  We remain confident in our ability to sustain shareholder value and serve the Humboldt County marketplace.”

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, 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.     

 

Redwood Capital Bancorp
Selected Consolidated Financial Results - Unaudited
(In Thousands - except share data)
				Period Ended				%
				12/31/2017		9/30/2017		Change
Balance Sheet Data (at period end)
	Total assets			$	342,153	$	374,812	-9	%
	Total deposits				311,733		344,387	-9	%
	Total loans (net)				255,209		258,625	-1	%
	Common equity				24,013		23,854	1	%
	Common shares outstanding				1,924,157		1,924,157	0	%
Summary of Operations (Current Quarter)
	Interest income				3,433		3,376	2	%
	Interest expense				193		201	-4	%
	Net Interest Income				3,240		3,175	2	%
	Non-interest income				535		457	17	%
	Non-interest expense				2,268		2,282	-1	%
	Net Income before provision				1,507		1,350	12	%
	Provision for loan losses				30		-	100	%
	Income before taxes				1,477		1,350	9	%
	Income taxes				1,074		536	100	%
	Net Income				403		814	-50	%
	Earnings per share (fully diluted)			$	0.21	$	0.42	-50	%
	Book value per common share			$	12.48	$	12.40	1	%
				Period Ended				%
				12/31/2017		12/31/2016		Change
Balance Sheet Data (at period end)
	Total assets			$	342,153	$	332,505	3	%
	Total deposits				311,733		303,847	3	%
	Total loans (net)				255,209		244,756	4	%
	Common equity				24,013		21,853	10	%
	Common shares outstanding				1,924,157		1,903,575	1	%
Summary of Operations (Current Quarter)
	Interest income				3,433		3,235	6	%
	Interest expense				193		190	2	%
	Net Interest Income				3,240		3,045	6	%
	Non-interest income				535		405	32	%
	Non-interest expense				2,268		2,172	4	%
	Net Income before provision				1,507		1,278	18	%
	Provision for loan losses				30		-	100	%
	Income before taxes				1,477		1,278	16	%
	Income taxes				1,074		504	113	%
	Net Income				403		774	-48	%
	Earnings per share (fully diluted)			$	0.21	$	0.41	-48	%
	Book value per common share			$	12.48	$	11.48	9	%
Summary of Operations (Year to Date)
	Interest income				13,168		12,603	4	%
	Interest expense				754		795	-5	%
	Net Interest Income				12,414		11,808	5	%
	Non-interest income				1,919		1,612	19	%
	Non-interest expense				9,152		8,794	4	%
	Net Income before provision				5,181		4,626	12	%
	Provision for loan losses				150		135	11	%
	Income before taxes				5,031		4,491	12	%
	Income taxes				2,466		1,796	37	%
	Net Income				2,565		2,695	-5	%
	Earnings per share (fully diluted)			$	1.33	$	1.42	-6	%
	Book value per common share			$	12.48	$	11.48	9	%

 

 

 

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