Company Reports Record Profitability – Cash Dividend Declared

EARNINGS RELEASE – January 28, 2015

EUREKA, CALIFORNIA – January 28, 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 and twelve month periods ended December 31, 2014. The community bank holding company reported record annual profits and reaffirmed its ongoing quarterly cash dividends.

President and CEO John Dalby stated, “We continue to be pleased with the core earnings performance of the company, the low level of nonperforming assets relative to our peers and the growth within our local loan portfolio during this persistently challenging economic environment. Likewise, we remain proud of our dedicated staff who continually contribute to the growth and profitability of our organization. In 2014, Redwood Capital Bank was again awarded a 5-Star rating from Bauer Financial, one of the most well-known and respected financial rating agencies within the banking trade, as well as being ranked the Best Bank to Work for in California and #8 nationally by American Banker.  These results and accolades suggest that our focus on putting local deposits to work by making loans to our local business, mortgage and consumer customers is building toward sustainable growth and positive earnings trends for the future.”

Total assets as of December 31, 2014 were $280.1 million, an increase of 2% over the September 30, 2014 figure and a 11% change from the December 31, 2013 reported figures. Total deposits stood at $251.8 million as of December 31, 2014, 2% greater than the September 30, 2014 figures and 11% higher than the December 31, 2013 numbers.  The company again reported strong loan growth for the quarter and year. Total loans as of December 31, 2014, net of unearned income, were $205.2 million, an increase of 3% over the prior quarter and 17% over the year ended December 31, 2013.

Consolidated net interest income for the three and twelve months ended December 31, 2014 totaled $2,618,000 and $9,947,000, respectively. In comparison, there was virtually no change in consolidated net interest income from the previous quarter while the year ended December 31, 2014 is up a strong 11% over the year ended December 31, 2013. The company also reported net income for the fourth quarter of 2014 of $447,000, while record earnings for the year ended December 31, 2014 were reported as $2,011,000. The earnings represented a 29% decrease over the September 30, 2014 quarter and a strong increase of 8% over the year ended December 31, 2013. The fluctuations in net income during the fourth quarter are attributed to higher credit related costs and lower non-interest income results. 

Additionally, the Board of Directors declared a quarterly cash dividend of $.06 per share, payable on February 6, 2015 to shareholders of record at the close of business on January 26, 2015. The dividend is equivalent to an annual rate of $0.24 per share or 2.44%, based upon a market price of $9.85 per common share. Since December 31, 2011, the rise in the company’s stock price, combined with dividends, has generated a total return of over 80%.

“We are very pleased with the opportunity to enhance shareholder value by deploying excess capital in a sound manner 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 2015,” 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.