Redwood Capital reports record earnings
While people across the country reconsider where to house their money, Humboldt County’s only local bank announces its sixth consecutive year of growth. (Press release below).
And after revelations that Coast Central Credit Union is paying its CEO a ridiculously high annual salary, Redwood Capital Bank’s CFO Fred Moore hopes you will consider the local alternative.
“No $1.2MM salaries over here, not even close,” Moore wrote in and email to the Humboldt Herald. “Unlike the credit unions, we pay income taxes (at a combined Fed/State rate of 41+%), we also offer great rates and even better service.”
Bank Transfer Day (BTD) is Saturday and already tens of thousands of people have moved their money to local banks and credit unions. The big banks have already backed away from plans to initiate a $5 monthly debit card fee in response to Occupy Wall Street and the worldwide protests in support of #ows. BTD organizers encourage people to move their money before Nov. 5th rather than waiting for the final day.
More from Moore
We were founded (back in 2004) specifically to bring community banking back to Humboldt County (North Valley, out of Redding, had already purchased Six Rivers National Bank and, the week we opened, Umpqua purchased the only other Community Bank, Humboldt Bank).
Our shareholders were local to our area and nobody (even as of now) owns more than 5% of our stock [Redwood Capital is] truly local and collaborative.
A municipal bank is backed by the full faith and credit of the state in which it is formed…i.e….California….
Our deposit dollars come from Humboldt County and are reinvested in loans right here for our customers to build or buy a home or to grow and expand their business, benefiting the entire local economy. While Big Banks, Credit Unions, and Muni Banks all have their place in the world, we truly believe we’re the best local option.
We’re banking on the people and businesses of Humboldt County – shouldn’t they all consider banking with us?
[Press Release] EUREKA, CALIFORNIA – On November 2, 2011, REDWOOD CAPITAL BANCORP (OTC BB: RWCB.OB), Holding Company for Redwood Capital Bank, announced unaudited consolidated financial results for three and nine month period ended September 30, 2011. The only locally owned and operated community bank holding company reported record year to date earnings during its sixth consecutive year of profitability.
John Dalby, President and CEO of the company, commented, “We are proud to again report such strong financial results to our loyal shareholders and the greater Humboldt County community. In spite of the many economic challenges that continue to plague our local and state economies, our track record of outstanding financial performance and our proven ability to adapt to the realities of today’s financial marketplace has enabled us to outperform our competitors. We continue to grow and expand as our peers shrink or turn their attention to other markets. Redwood Capital is banking on Humboldt County and we’re grateful that Humboldt County is banking with us,” concluded Dalby.
While revenues are increasing and the company boosts it lending within the region, management continues to provide for any future economic uncertainties by adding to its loan loss reserves. “Redwood Capital continues to maintain its pro-active and conservative approach with regards to economic uncertainties by adding to our loss loan reserves,” stated CEO Dalby. “This strategy assures our shareholders and customers that the franchise is well-positioned to not only weather current economic conditions, but most importantly, to be successful for many years to come.”
The Company’s continued strong performance hasn’t gone unnoticed. Earlier this year, The Findley Reports, one of the most respected and well known California bank research and rating firms, designated the Bank a Super Premier Performing Bank based on last year’s operating performance and management effectiveness. The rating of Super Premier Performance is the highest designation possible for California community banks to receive and places the Bank in the top 10% of all banks in the Western United States.
Total assets as of September 30, 2011 were $240.1 million, an increase of 6% and 12% over the June 30, 2011 and September 30, 2010 reported figures, respectively. Total deposits stood at $215.6 million as of September 30, 2011, an increase of 4% and 11% over the June 30, 2011 and September 30, 2010 respectively. The company also reported modest loan growth for the quarter. Total loans as of September 30, 2011, net of unearned income, were $146.7 million, an increase of 3% over the prior quarter and 2% over the quarter ended September 30, 2010.
Net interest income for the three and nine months ended September 30, 2011 totaled $1,989,000 and $5,938,000, respectively, representing an increase of 2% from the three month ended June 30, 2011 and 7% for the nine months ended September 30, 2010. The Company also reported earnings for the third quarter of 2011 of $300,000 while earnings for the first nine months of 2011 were $1,017,000. The earnings represented an 11% increase over the June 30, 2011 quarter and an impressive 986% over the first nine months of 2010. While the Company’s income tax expenses increased, its loan loss provision expense decreased, contributing to the large increase in net income after taxes. Book value per common share stood at $7.41 as of September 30, 2011, a 2% increase over the previous quarter and a healthy 13% increase over the September 30, 2010 amount.