Company Again Reports Record Third Quarter Earnings – Cash Dividend Continued

Earnings Release

EUREKA, CALIFORNIA – On November 2, 2016, REDWOOD CAPITAL BANCORP (RWCB.OB), the holding company for Redwood Capital Bank, announced unaudited consolidated financial results for three and nine month period ended September 30, 2016. The only locally owned and operated community bank holding company reported record third quarter earnings and a continuation of dividend payments during its eleventh consecutive year of profitability.

John Dalby, President and CEO of the company, commented, “The Board of Directors and management team anticipate Redwood Capital Bank’s positive momentum to extend throughout the remainder of 2016 and into 2017. Our amazing staff continues to perform at a very high level and their efforts and talents are reflected in the financial results of the company. I feel very fortunate to be a part of the team. The strong balance sheet continues to improve and we are well positioned for the future.”

Total assets as of September 30, 2016 were $334.9 million; an increase of 4% over the June 30, 2016 and 4% from the September 30, 2015 reported figures. Total deposits stood at $306.4 million as of September 30, 2016, an increase of 4% over the June 30, 2016 and 5% over the September 30, 2015 figures. The company also reported robust loan growth for the quarter. Total loans as of September 30, 2016, net of unearned income, were $237 million, up 3% from the prior quarter and up 9% over the quarter ended September 30, 2015.

CEO Dalby continued, “Being the only local community bank serving Humboldt County, we are in a unique position to relate to and understand our customers. Our Board of Directors, management and staff are stakeholders in the community that we serve. Unlike out-of-area corporate banks, the monies deposited here stay here helping to revitalize the North Coast’s economy. Humboldt County needs a strong, engaged community bank. Redwood Capital Bank continues to be an attractive choice for customers looking for a true financial partner.”

Net interest income for the three and nine months ended September 30, 2016 totaled $2,956,000 and $8,763,000, respectively, representing an increase of 1% and 8% over the three month ended June 30, 2016 and nine months ended September 30, 2015, respectively. The company also reported record net income for the third quarter of 2016 of $668,000 while earnings for the first nine months of 2016 totaled $1,921,000. The earnings represented a 5% increase over the September 30, 2015 quarter and an increase of 16% over the first nine months of 2015. The increase net income was attributed to decreasing credit costs, increasing non-interest income and strong net interest margin. Book value per common share, a common measurement of shareholder value, stood at $11.24 as of September 30, 2016, a 3% increase over the previous quarter and an 11% increase over the September 30, 2015 amount.

Additionally, the Board of Directors reaffirmed a quarterly cash dividend of $0.06 per share, payable on November 14, 2016, to shareholders of record at the close of business on October 31, 2016. The dividend is equivalent to an annual rate of $0.24 per share or 1.72%, based upon a market price of $13.92 per common share.

For more information regarding Redwood Capital Bancorp, please visit our website at, contact Fred Moore, EVP/CFO, at (707) 444-9840, or stop by the headquarters and main office at 402 “G” Street, Eureka, CA 95501.