Earnings Release – Redwood Capital Bancorp – Third Quarter, 2022 Company Reports Increased Dividend

EUREKA, CALIFORNIA – On November 2, 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 and nine month period ended September 30, 2022.  Redwood Capital Bank, the company’s wholly owned subsidiary reported consistent earnings.

President and CEO, John E. Dalby remarked, “Redwood Capital Bancorp is well positioned to thrive despite the potential recessionary climate.  The company is well-capitalized, has significant liquidity and limited market risk exposure within the investment portfolio. The leverage capital ratio of the underlying bank is 9.90%, well above the regulatory minimum of 5.00%.  Redwood Capital Bank maintains a strong liquidity position both on and off balance sheet.  Through IntraFi, Redwood Capital Bank has moved $116 million in excess deposits off balance sheet. The majority of these deposits can be returned to the balance sheet within 24 hours if ever needed. Credit quality remains excellent and continues to improve.”

Total assets as of September 30, 2022 were $553.7 million; an increase of 1% over the June 30, 2022. Total deposits stood at $507.3 million as of September 30, 2022, a slight increase over June 30, 2022. Total loans as of September 30, 2022, net of unearned income, were $359.2 million, an increase of 2% over June 30, 2022.

Net interest income for the three and nine months ended September 30, 2022 totaled $4,659,000 and $12,161,000 respectively, representing an increase of 13% over the three months ended June 30, 2022. The company also reported net income for the first nine months of 2022 of $4,080,000. Book value per common share, a common measurement of shareholder value, was $18.10 as of September 30, 2022.

Dalby added, “Based on the strength of the balance sheet and consistent strong earnings, the Board of Directors has increased the quarterly dividend from $0.07 per share to $0.08 per share. This is a 14.3% increase from the previous quarter. The dividend is payable on November 14, 2022, to shareholders of record at the close of business on October 31, 2022. The dividend payment is equivalent to an annual rate of $0.32 per share or 1.84%, based upon a market price of $17.40 per common share.”

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.

A video presentation featuring the company’s financial performance for 2021 through June 30, 2022, can be found at: www.redwoodcapitalbank.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.