Earnings Release – Redwood Capital Bancorp – Second Quarter, 2025
John Dalby, President and CEO, remarked, "In the second quarter of 2025, the company maintained its strong balance sheet and high-quality loan portfolio, supported by healthy capital and liquidity positions. Earnings per share were $0.56 for the quarter and $1.15 year-to-date. The Redwood Capital Bank team continue to serve our customers, community and shareholders with excellence, which has always been the impetus of our success.'
The company posted modest growth in the balance sheet during the second quarter 2025. As of June 30, 2025, the company's total assets were $549.8 million, an increase of 6% from the prior quarter and 6% from the same period last year. Total loans net of unearned income was $382.3 million as of June 30, 2025. Total deposits were $489.7 million as of June 30, 2025.
The continued high performing balance sheet produced net interest income of $4.7 million for the second quarter ending June 30, 2025, and $12 million year-to-date. For the second quarter ending June 30, 2025, the company recorded net income after taxes of $1.1 million and $2.3 million year-to-date. These strong earnings have increased book value per share by 1% or $0.38 to $27.21 for the second quarter ending June 30, 2025, and an increase to book value of $1.38 year-to-date. Renee Byers, SVP/Chief Financial Officer, stated, 'Redwood Capital Bank continues to provide excellent products and services, while contributing to our local community.'
Additionally, the Board of Directors declared a quarterly cash dividend of $0.09 per share, payable on August 8, 2025, to shareholders of record at the close of business on July 28, 2025. The dividend is equivalent to an annual rate of $0.36 per share. CEO Dalby added, 'Redwood Capital Bancorp continues to provide consistent earnings for our shareholders while remaining an economic foundation for the community.'
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 Bank 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)
Period Ended %
6/30/2025 3/31/2025 Change
Balance Sheet Data (at period end)
Total assets
$
549,823
$
519,389
6
%
Total deposits
489,770
461,146
6
%
Total loans (net)
382,251
383,033
0
%
Common equity
53,706
52,446
2
%
Common shares outstanding
1,974,071
1,954,627
1
%
Summary of Operations (Current Quarter)
Interest income
6,083
5,983
2
%
Interest expense
1,345
1,311
3
%
Net Interest Income
4,738
4,672
1
%
Non-interest income
752
819
-8
%
Non-interest expense
4,044
3,922
3
%
Net Income before provision
1,446
1,569
-8
%
Provision for loan losses
(90
)
(17
)
>-100%
Income before taxes
1,536
1,586
-3
%
Income taxes/(credit)
421
436
-3
%
Net Income
1,115
1,150
-3
%
Earnings per common share (fully diluted)
$
0.56
$
0.59
-4
%
Book value per common share
$
27.21
$
26.83
1
%
Period Ended %
6/30/2025 6/30/2024 Change
Balance Sheet Data (at period end)
Total assets
$
549,823
$
520,378
6
%
Total deposits
489,770
460,814
6
%
Total loans (net)
382,251
383,123
0
%
Common equity
53,706
47,847
12
%
Common shares outstanding
1,974,071
1,960,374
1
%
Summary of Operations (Current Quarter)
Interest income
6,083
5,444
12
%
Interest expense
1,345
1,126
19
%
Net Interest Income
4,738
4,318
10
%
Non-interest income
752
1,055
-29
%
Non-interest expense
4,044
3,143
29
%
Net Income before provision
1,446
2,230
-35
%
Provision for loan losses
-90
137
>-100%
Income before taxes
1,536
2,093
-27
%
Income taxes
421
541
-22
%
Net Income
1,115
1,552
-28
%
Earnings per common share (fully diluted)
$
0.56
$
0.79
-29
%
Book value per common share
$
27.21
$
24.41
11
%
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Cautionary Statement Concerning Forward-Looking Statements This news release includes 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements give our current expectations, opinions, beliefs or forecasts of future events and performance. A statement identified by the use of forward-looking words including 'will,' 'may,' 'expects,' 'projects,' 'plans,' 'believes,' 'should,' 'continue,' 'intend,' 'aim' and certain other statements about the future may be deemed forward-looking statements, including those regarding potential new product launches, the ability of new product launches to meet consumer needs, the Company's ability to navigate ongoing tariff uncertainty. Although Newegg believes that the expectations reflected in such forward-looking statements are reasonable at the time given, these statements involve risks and uncertainties that may cause actual future activities and results to be materially different from those suggested or described in this news release. These risks and uncertainties include changes in global economic and geopolitical conditions, fluctuations in customer demand and spending, inflation, interest rates and global supply chain constraints. Investors are cautioned that any forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from those projected. Readers are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements in this press release are made as of the date hereof. The Company takes no obligation to update or correct its own forward-looking statements, except as required by law, or those prepared by third parties that are not paid for by the Company. The Company's SEC filings are available at June 30, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents $ 59,063 $ 96,255 Restricted cash 843 3,487 Accounts receivable, net 28,970 64,363 Inventories, net 152,859 98,537 Income taxes receivable 2,085 2,452 Prepaid expenses 11,440 14,222 Other current assets 4,559 4,329 Total current assets 259,819 283,645 Property and equipment, net 46,597 51,175 Noncurrent deferred tax assets 915 914 Right of use assets, net 54,474 60,636 Other noncurrent assets 10,932 10,951 Total assets $ 372,737 $ 407,321 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 118,031 $ 148,279 Accrued liabilities 37,192 48,629 Deferred revenue 23,619 26,988 Line of credit 15,775 7,069 Lease liabilities – current 12,815 12,608 Total current liabilities 207,432 243,573 Income taxes payable 1,795 1,871 Lease liabilities – noncurrent 46,864 53,318 Other liabilities 2,545 2,467 Total liabilities 258,636 301,229 Stockholders' Equity Common Stock, $0.43696 par value; unlimited shares authorized; 19,499 and 19,478 shares issued and outstanding as of June 30, 2025, and December 31, 2024, respectively 8,521 8,512 Additional paid-in capital 300,628 289,096 Notes receivable – related party (15,187 ) (15,189 ) Accumulated other comprehensive loss (1,653 ) (2,300 ) Accumulated deficit (178,208 ) (174,027 ) Total stockholders' equity 114,101 106,092 Total liabilities and stockholders' equity $ 372,737 $ 407,321 NEWEGG COMMERCE, INC. Consolidated Statements of Operations (In thousands) (Unaudited) Six Months Ended June 30, 2025 2024 Net sales $ 695,670 $ 618,119 Cost of sales 615,878 555,003 Gross profit 79,792 63,116 Selling, general, and administrative expenses 87,329 93,083 Loss from operations (7,537 ) (29,967 ) Interest income 1,058 1,544 Interest expense (466 ) (440 ) Other income, net 3,410 1,880 Gain from sales of investment - 1,619 Change in fair value of warrants liabilities (72 ) (64 ) Loss before provision for (benefit from) income taxes (3,607 ) (25,428 ) Provision for (benefit from) income taxes 574 (474 ) Net loss $ (4,181 ) $ (24,954 ) NEWEGG COMMERCE, INC. Consolidated Statements of Cash Flows (In thousands) (Unaudited) Six Months Ended June 30, 2025 2024 Cash flows from operating activities: Net loss $ (4,181 ) $ (24,954 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 4,425 5,739 Allowance for expected credit losses 20 1,193 Allowance for related party receivables 2 - Provision for obsolete and excess inventory 1,359 1,569 Stock-based compensation 11,630 15,022 Gain from sales of investment - (1,619 ) Change in fair value of warrant liabilities 72 65 Loss (gain) on disposal of property and equipment (643 ) 52 Unrealized gain on marketable securities - (10 ) Deferred income taxes - (169 ) Changes in operating assets and liabilities: Accounts receivable 35,377 42,426 Inventories (55,168 ) 2,223 Prepaid expenses 2,807 4,913 Other assets 6,533 8,959 Accounts payable (30,604 ) (95,388 ) Accrued liabilities and other liabilities (18,099 ) (15,036 ) Deferred revenue (3,482 ) (8,182 ) Net cash used in operating activities (49,952 ) (63,197 ) Cash flows from investing activities: Payments to acquire property and equipment (1,248 ) (1,212 ) Proceeds on disposal of property and equipment 2,723 15 Proceeds from sale of investment - 2,076 Net cash provided by investing activities 1,475 879 Cash flows from financing activities: Borrowings under line of credit 10,000 41,098 Repayments under line of credit (1,751 ) (27,474 ) Repayments of long-term debt - (132 ) Proceeds from exercise of stock options - 95 Payments for employee taxes related to stock compensation (89 ) (241 ) Payments for shares buyback - (3,503 ) Net cash provided by financing activities 8,160 9,843 Foreign currency effect on cash, cash equivalents and restricted cash 481 (886 ) Net decrease in cash, cash equivalents and restricted cash (39,836 ) (53,361 ) Cash, cash equivalents and restricted cash: Beginning of period 99,742 106,474 End of period $ 59,906 $ 53,113 Schedule 1 Reconciliation of Net Sales to GMV (In millions) (Unaudited) Six Months Ended June 30, 2025 2024 Net Sales $ 695.7 $ 618.1 Adjustments: GMV - Marketplace 173.0 153.0 Marketplace Commission (14.3 ) (12.7 ) Deferred Revenue (4.6 ) (5.8 ) Other (0.7 ) (5.9 ) GMV $ 849.1 $ 746.7 Schedule 2 Reconciliation of Net Loss to Adjusted EBITDA (In millions) (Unaudited) Six Months Ended June 30, 2025 2024 Net loss $ (4.2 ) $ (25.0 ) Adjustments: Stock-based compensation expenses 11.6 15.0 Interest income, net (0.6 ) (1.1 ) Income tax (benefit) provision 0.6 (0.4 ) Depreciation and amortization 4.4 5.7 Gain from sale of fixed assets (0.6 ) - Gain from sale of investment - (1.6 ) Loss from change in fair value of warrants liabilities 0.1 0.1 Adjusted EBITDA $ 11.3 $ (7.3 )
