Bauer 5-Star Awarded – Henderson Center Branch Opening Soon – Bank and CEO Receive Awards Cash Dividend Affirmed

EUREKA, CALIFORNIA – January 30, 2019 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, 2018.  The community bank holding company reaffirmed its ongoing quarterly cash dividend, while Redwood Capital Bank, the company’s wholly owned subsidiary looks toward opening its fourth branch location.

President and CEO John Dalby stated, “In 2018, Redwood Capital Bank was again awarded the 5-Star rating from Bauer Financial, one of the most well-known and respected financial rating agencies within the bank trade. These results and accolades reflect the service and results-oriented culture of the company. We eagerly anticipate the February opening of our fourth branch location in Henderson Center, Eureka. We look forward to expanding our footprint in the Eureka market and to becoming a part of the vibrant neighborhood and business district that makes up Henderson Center.”

Additionally, at this year’s Greater Eureka Chamber of Commerce Annual Dinner, Redwood Capital Bank received the Large Business of the Year Award for its contributions to the community, top-notch customer service, positive work environment, investments in the local economy and commitment to giving back to the community in many ways. President and CEO, John Dalby received the 2018 Leadership Impact Award. Dalby was honored for being a leader in the business community who inspires and encourages others and who has earned a high level of trust and credibility. Mr. Dalby has been, and continues to be, active in the community, serving on numerous boards and committees.

Redwood Capital Bancorp Chairman, John Gierek, Jr. commented, “Redwood Capital Bank is honored to be the recipient of this esteemed award that signifies our commitment to this community. I am also very proud of John Dalby for receiving the Leadership Impact Award which recognizes his long-standing involvement and positive impact within Humboldt County.”

Total assets as of December 31, 2018 were $368.1 million, a decrease of 1% over the September 30, 2018 figure and a modest increase of 8% over the December 31, 2017 reported figures. Total deposits stood at $334.7 million as of December 31, 2018, 2% less than the September 30, 2018 figures and 7% higher than the December 31, 2017 numbers. Total loans as of December 31, 2018, net of unearned income, were $278.7 million, a slight increase of 1% from the prior quarter and an increase of 9% over the year ended December 31, 2017.

Consolidated net income before taxes for the three and twelve months ended December 31, 2018 totaled $1,611,000 and $5,684,000, up 21% from the figure reported for the three months ended September 30, 2018 and up a stout 13% from the figure reported for the twelve months ended December 31, 2017. The company also reported net income for the fourth quarter of 2018 of $1,125,000, while net income for the year ended December 31, 2018 was reported as $4,140,000. The earnings represented a 18% increase over the September 30, 2018 quarter and an increase of 61% from the year ended December 31, 2017. The strong performance in net income before taxes during the fourth quarter and full year are attributed to consistent, high quality loan growth and strong cost controls. A strong balance sheet and excellent loan quality are evidenced by a 1.79% decline in the Texas Ratio. Recoveries continue to exceed charge-offs.

Additionally, the Board of Directors declared a quarterly cash dividend of $0.07 per share, payable on February 13, 2019 to shareholders of record at the close of business on January 29, 2019. The dividend is equivalent to an annual rate of $0.28 pershare or 1.81%, based upon a market price of $15.51 per common share.

CEO Dalby explained, “We are very pleased with the opportunity to enhance shareholder value by deploying capital in a sound manner while at the same time being consistent with the desire of our Board of Directors and our shareholders at large. We continue to be a well-capitalized organization with the ability to take advantage of strategic opportunities as they arise. The entire Redwood Capital Bank team is excited about the opportunities before us in 2019, Dalby stated.”

For more information regarding Redwood Capital Bancorp, please visit our website at , contact Renee Byers, CFO, at (707) 444-9849, or stop by our headquarters and main office at 402 “G” Street, Eureka, CA 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 Company undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.