Earnings Release – Redwood Capital Bancorp – Second Quarter, 2022 Strong Second Quarter Earnings – Continued Dividend

EUREKA, CALIFORNIA – On July 27, 2022, REDWOOD CAPITAL BANCORP (OTCQB:RWCB), the only locally owned and operated community bank holding company in Humboldt County, announced unaudited financial results for the three month period ended June 30, 2022. Redwood Capital Bank, the company’s wholly owned subsidiary, reported strong second quarter earnings.

John Dalby, President and CEO remarked, “At Redwood Capital Bank, the Board of Directors, management and staff are committed to providing exceptional customer service and support to our local community. Since 2004, we have remained mindful of the company’s mission to be Humboldt County’s local, community bank. Asset quality is excellent and continues to improve. The bank is well positioned for the future.”

In an effort to further strengthen the balance sheet, Redwood Capital Bank strategically reduced total assets as of June 30, 2022 by 3% from the previous quarter to $548 million. Total loans, net of unearned income, totaled $350.8 million as of June 30, 2022, compared to $337 million reported for the quarter ended March 31, 2022 and $343 million for the quarter ended June 30, 2021.

Net interest income for the quarter ended June 30, 2022 totaled $3,930,000 an increase of 10% from the $3,572,000 reported for the three months ended March 31, 2022 and a slight increase from the $3,921,000 reported for the period ended June 30, 2021. The company also reported net income after taxes and provision expenses in the second quarter of 2022 of $1,528,000 up 86% reported for the three months ended March 31, 2022 and an increase of 2% from the $1,492,000 reported for the second quarter of 2021. Renee Byers, SVP/CFO stated, “The company’s performance is a direct reflection of the incredible teamwork and dedication to our community - that is the culture at Redwood Capital Bank.”

Additionally, the Board of Directors declared a quarterly cash dividend of $0.07 per share, payable on August 5, 2022, to shareholders of record at the close of business on July 25, 2022. The dividend is equivalent to an annual rate of $0.28 per share or 1.47%, based upon a market price of $19.00 per common share. CEO Dalby explained, “A consistent dividend remains a top priority of the Board of Directors and management, along with continued growth in shareholder value.”

For more information regarding Redwood Capital Bancorp, please visit our website at www.redwoodcapitalbank.com, contact Renee Byers, SVP/CFO, at (707) 444-9849, or stop by our headquarters and main office at 402 “G” Street, Eureka, California 95501. Redwood Capital Bancorp (OTCQB:RWCB) trades on the OTCQB Venture Market for early stage and developing U.S. and international companies. Companies are current in their reporting and undergo an annual verification and management certification process. Investors can find Real-Time quotes and market information for the company on www.otcmarkets.com.

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.