Earnings Release – Redwood Capital Bancorp – Second Quarter, 2023

EUREKA, CALIFORNIA – On August 2, 2023, 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, 2023. Redwood Capital Bank, the company’s wholly owned subsidiary, reported strong second quarter earnings.

John Dalby, President and CEO remarked, “The Redwood Capital Bancorp Board of Directors and staff are pleased to announce the second quarter, 2023 results as well as the June 30 year-to-date (YTD) results. At six months ended June 30, 2023, the company’s earnings are ahead of last year’s record earnings by $1.2 million. The company has experienced deposit growth YTD and remains highly liquid and well capitalized. Loan quality remains excellent and the staff is highly engaged. Earnings per share as of the six months ended June 30, 2023 is $1.82 which is a 19.34% increase over the previous year. I am very proud of the outstanding work of our staff.”

The company posted modest growth in the major balance sheet categories of assets, loans and deposits during the second quarter of 2023. Total assets as of June 30, 2023, were $526 million, an increase of 3% from the prior quarter. Total loans, net of unearned income, rose to $384.9 million as of June 30, 2023, an increase of 1% from the prior quarter. Lastly, total deposits grew to $473.6 million as of June 30, 2023, an increase of 3% from the prior quarter. Net interest income for the quarter ended June 30, 2023, totaled $4.6 million an increase of 18% from the $3.9 million reported for the three months ended June 30, 2022. The company also reported net income after taxes and provision expenses in the second quarter of 2023 of $1.7 million, up 12% for the three months ended June 30, 2022. Renee Byers, SVP/Chief Financial Officer stated, “The Redwood Capital Bank team continues to work diligently to bring the best service to our customers, shareholders and community - that is the culture at Redwood Capital Bank.”

Additionally, the Board of Directors declared a quarterly cash dividend of $0.08 per share, payable on August 11, 2023, to shareholders of record at the close of business on July 31, 2023. The dividend is equivalent to an annual rate of $0.32 per share. CEO Dalby added, “Redwood Capital Bancorp continues to provide consistent earnings for our shareholders while remaining an economic foundation for the community.” 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.