Company Again Reports Record Third Quarter Earnings – Cash Dividend Continued

EARNINGS RELEASE – October 28, 2015

EUREKA, CALIFORNIA – On October 28, 2015, REDWOOD CAPITAL BANCORP (RWCB.OB), the only locally owned and operated community bank holding company in Humboldt County, announced unaudited consolidated financial results for three and nine month period ended September 30, 2015. Redwood Capital Bank, the company’s wholly owned subsidiary reported record earnings and a continuation of dividend payments during its tenth consecutive year of profitability.

John Dalby, President and CEO of the company, commented, “The Board of Directors and management team are encouraged by the continued progress of the bank. With shareholder value and community service as core values, Redwood Capital Bancorp’s strong performance and financial position continue to increase our ability to serve all of our stakeholders.”

Total assets as of September 30, 2015 were $322.2 million; an increase of 6% over the June 30, 2015 and 18% from the September 30, 2014 reported figures. Total deposits stood at $292.6 million as of September 30, 2015, an increase of 6% over the June 30, 2015 and 19% over the September 30, 2014 figures. The company also reported robust loan growth for the quarter. Total loans as of September 30, 2015, net of unearned income, were $217.7 million, up 2% from the prior quarter and up 9% over the quarter ended September 30, 2014.

CEO Dalby continued, “The community bank is the economic foundation of rural economies. We take this role seriously and remain committed to helping local business owners create jobs that stimulate our economy. In the third quarter of 2015, Redwood Capital Bank generated over $11.6 million in new loan commitments to the community with over $9.8 million of those loan commitments to the business community. We continue to be the leader in the markets we serve.”

Net interest income for the three and nine months ended September 30, 2015 totaled $2,774,000 and $8,126,000, respectively, representing an increase of 2% and 11% over the three months ended June 30, 2015 and nine months ended September 30, 2014, respectively. The company also reported record net income for the third quarter of 2015 of $638,000 while earnings for the first nine months of 2015 totaled $1,657,000. The earnings represented a 12% increase over the June 30, 2015 quarter and an increase of 6% over the first nine months of 2014. The increased net income was attributed to decreasing credit costs, increasing non­interest income and strong net interest margin.

Additionally, the Board of Directors declared a quarterly cash dividend of $0.06 per share, payable on November 12, 2015, to shareholders of record at the close of business on November 2, 2015. The dividend is equivalent to an annual rate of $0.24 per share or 2.31%, based upon a market price of $10.40 per common share.

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

This press release may contain forward­looking 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 forward­looking statements, which reflect management’s view only as of the date hereof. The bank undertakes no obligation to publicly revise these forward­looking statements to reflect subsequent events or circumstances.