Record Quarterly and Annual Profitability –Cash Dividend Affirmed

EUREKA, CALIFORNIA – February 1, 2017 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 and twelve month periods ended December 31, 2016. The community bank holding company reported record quarterly and annual profits while reaffirming its ongoing quarterly cash dividends.

President and CEO John Dalby stated, “Recently, Redwood Capital Bank received the honor of being named the #1 Small Business Administration Lender (SBA) in Humboldt County for the second consecutive year. We are pleased that our hightouch, personalized business culture allows us the opportunity to offer customized lending solutions to our business clients. Our loan pipeline remains robust as our team continues to expand relationships within the Humboldt County market.”

Total assets as of December 31, 2016 were $332.5 million, a slight decrease of 1% over the September 30, 2016 figure and a modest increase of 5% over the December 31, 2015 reported figures. Total deposits stood at $303.8 million as of December 31, 2016, 1% less than the September 30, 2016 figures and 5% higher than the December 31, 2015 numbers. The company again reported strong loan growth for the quarter and year. Total loans as of December 31, 2016, net of unearned income, were $244.8 million, an increase of 3% over the prior quarter and 9% over the year ended December 31, 2015.

Consolidated net interest income for the three and twelve months ended December 31, 2016 totaled $3,045,000 and $11,808,000, up 3% from the figure reported for the three months ended September 30, 2016 and up 8% for the twelve months ended December 31, 2015. The company also reported net income for the fourth quarter of 2016 of $774,000, while record earnings for the year ended December 31, 2016 were reported as $2,695,000. The earnings represented a 16% increase over the September 30, 2016 quarter and a strong increase of 19% over the year ended December 31, 2015. The improvement in net income performance during the fourth quarter and full year are attributed to stout loan growth, outstanding FNMA loan originations, and strong cost controls.

Additionally, the Board of Directors declared a quarterly cash dividend of $.06 per share, payable on February 10, 2017 to shareholders of record at the close of business on January 31, 2017. The dividend is equivalent to an annual rate of $0.24 per share or 1.63%, based upon a market price of $14.70 per common share. Since January 28, 2016 the rise in the company’s stock price, combined with dividends, has generated a total return of over 38%.

“As we close out 2016, I am grateful for the incredible efforts from our team which have resulted in an excellent performance. The year-end results are a direct reflection of these endeavors. Our Board of Directors, staff and management have been diligent and dedicated to working for the benefit of our shareholders and our community. We look forward to 2017 with the same enthusiasm and dedication,” Dalby concluded.

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, CA 95501.