Company Celebrates Eleventh Anniversary with Record Core Earnings and Growth – Dividend Affirmed

EARNINGS RELEASE – October 29, 2014

EUREKA, CALIFORNIA – On April 29, 2015, 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 month period ended March 31, 2015.  Redwood Capital Bank, the company’s wholly owned subsidiary, celebrated its eleventh year anniversary by reporting record core earnings and growth while the Board of Directors affirmed its standing quarterly dividend.

John Dalby, President and CEO of the company, remarked, “Management and the Board of Directors are pleased with the excellent start in 2015, particularly with regard to strong profitability and our year-over-year loan growth.  We now look forward to growing the Arcata branch and becoming part of that vital community while, at the same time, we continue to be aggressive in building new relationships in the Eureka and Fortuna communities.” 

The company’s consistent track record of strong performance has not gone unnoticed.   For 2014, Redwood Capital Bank has again been awarded the prestigious “Super Premier Performing” designation by The Findley Reports, a publication that provides a comprehensive analysis and evaluation of California’s banking industry.  Additionally, Redwood Capital Bank received a 5-Star rating from Bauer Financial, one of the most well-known and respected financial rating agencies within the banking trade.

The company posted record growth in the major balance sheet categories of assets, loans and deposits.  Total assets as of March 31, 2015 were $293.4 million, an increase of 15% from the same period last year. Total loans, net of unearned income, rose to $206.9 million as of March 31, 2015, an increase of 15% over the quarter ended March 31, 2014.  Total deposits grew to $265 million as of March 31, 2015, an increase of 16% over the March 31, 2014 figure. 

Net interest income for the quarter ended March 31, 2015 totaled $2,630, 000, up 15% from the $2,284,000 reported for the three months ended March 2014.  The company reported record net income before taxes in the first quarter of 2015 of $639,000, up a solid 6% from the $601,000 reported for the first quarter of 2014.  The increase was primarily attributed to record loan growth, exceptional credit quality, and strong cost controls.  “Our lending activity continues at a brisk pace. The current marketplace is highly competitive and challenging, one that we are addressing with a focus on value and an unprecedented customer experience.  Our lenders have a wide variety of loan products and services they are using to create wonderful solutions for our customers,” stated Dalby.

Additionally, the Board of Directors declared a quarterly cash dividend of $0.06 per share, payable on May 8, 2015, to shareholders of record at the close of business on April 27, 2015.  The dividend is equivalent to an annual rate of $0.24 per share or 2.19%, based upon a market price of $10.95 per common share. Since April 15, 2014, the stock price appreciation combined with dividend payments represents a 25.7% annualized return to shareholders.  CEO Dalby explained, “We are pleased to announce a continued dividend as a sign of our belief in the financial strength of the company and our confidence in the ability to profitably grow in the future.”

For more information regarding Redwood Capital Bancorp, please visit our website at, contact Fred Moore, CFO, at (707) 444-9840, or stop by our headquarters and main office at 402 “G” Street, Eureka, California  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 Bank undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.