Earnings Release – Redwood Capital Bancorp – Year End 2021 Company Experiences Record Growth and Earnings in 2021 – Cash Dividend Affirmed

EUREKA, CALIFORNIA – February 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 twelve month periods ended December 31, 2021. Redwood Capital Bank, the company’s wholly owned subsidiary, reported record earnings and unprecedented loan growth.

Acting CEO, Jennifer Budwig remarked, “2021 was an extraordinary year as the COVID-19 pandemic continued and many businesses were faced with ongoing challenges. Redwood Capital Bank’s staff maximized their efforts to meet these challenges by responding to the needs of our customers and our community. Redwood Capital Bank’s growth resulted from newfound relationships gained from the Small Business Administration’s Paycheck Protection Program (PPP), Rounds 1 and 2. Nine hundred and seventy-five loans were processed, totaling $104 million that was disbursed into our local economy. Additionally, Redwood Capital Bank’s Consumer Lending Department continued to attain a record number of new loan originations as mortgage rates remained low, providing an excellent incentive to borrowers.”

Total assets as of December 31, 2021 were $595 million, an increase of 1% over the September 30, 2021 figure and a 20% increase over the December 31, 2020 figure. Total deposits stood at $542 million as of December 31, 2021, a slight 1% increase over the September 30, 2021 figures and 21% increase over the December 31, 2020 total deposits. Total loans as of December 31, 2021, net of unearned income, were $332 million.

Consolidated net income before taxes for the three and twelve months ended December 31, 2021 totaled $1,794,000 and $7,700,000, a decrease of 7% from the figure reported for the three months ended September 30, 2021 and a 24% increase from the figure reported for the twelve months ended December 31, 2020. The company also reported net income for the fourth quarter of 2021 of $1,293,000, while net income for the year ended December 31, 2021 was reported as $5,592,000. The annual earnings represented a 27% increase from the year ended December 31, 2020. These record earnings are a result of strong loan production and controlled expenses.

President and CEO, John Dalby added, “On behalf of the Board of Directors and management team, I would like to congratulate the staff on a record year. We could not be more proud of the entire Redwood Capital Bank team. I would also like to thank Acting CEO, Jennifer Budwig for her leadership during my absence. I look forward to returning to Redwood Capital Bank in my full capacity in the near future.”

Additionally, the Board of Directors declared a quarterly cash dividend of $0.07 per share, payable on February 16, 2022 to shareholders of record at the close of business on January 31, 2022. The dividend is equivalent to an annual rate of $0.28 per share or 1.36%, based upon a market price as of year-end.

For more information regarding Redwood Capital Bancorp, please visit our website at www.redwoodcapitalbank.com, contact Renee Byers, CFO, at (707) 444-9849, or stop by our headquarters and main office at 402 “G” Street, Eureka, CA 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 Company undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.