Earnings Release – Redwood Capital Bancorp – Year End 2023 Company Celebrates 20-Year Milestone - Cash Dividend Affirmed

EUREKA, CALIFORNIA – January 31, 2024, REDWOOD CAPITAL BANCORP (OTCQX: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, 2023. Redwood Capital Bank, the company’s wholly owned subsidiary, announced 2024 as their 20-year milestone anniversary.

President and CEO John Dalby stated, “At Redwood Capital Bank, we have a rich history to reflect upon and much to look forward to in 2024. As the new year begins, we eagerly anticipate celebrating Redwood Capital Bank’s 20th anniversary in March, 2024. This milestone is particularly meaningful as there are seven founding employees and four founding directors, all of whom remain fully engaged with the institution and dedicated to our mission – to deliver superior community banking services. The greatest asset at Redwood Capital Bank is without a doubt the talented staff and Board of Directors. It is my honor to work alongside this top-notch team and serve our Humboldt County community.”

Dalby added, “At the close of 2023, we saw continued strong earnings, posting 19% year-over-year growth in earnings per share. Though deposits declined during 2023, Redwood Capital Bank experienced significant recent growth rising from $331 million in 2019 to $460 million as of year-end 2023. Over the year, loans grew by $9 million, resulting in a loan to deposit ratio of 84.35% at fiscal year-end. Net interest margin increased from 3.95% in 2022 to 4.13% in 2023. At the founding in 2004, the company’s goal was to build a community bank with a fortress balance sheet and a company designed to serve the local community. It has been the strength of our balance sheet that has seen us through the many economic challenges the industry has faced over the last 20 years. Redwood Capital Bank ended 2023 with a tangible leverage capital ratio of 10.94% and over $95 million in off balance sheet liquidity. Redwood Capital Bank’s fortress balance sheet is well positioned for future opportunities and challenges.”

Total assets as of December 31, 2023, were $518 million and total deposits stood at $460.4 million as of December 31, 2023. Total loans as of December 31, 2023, net of unearned income, were $388.4 million, an increase of 1% over the September 30, 2023, figure of $386.4 million and a 2% increase over the December 31, 2022, total loans of $379.5 million. Consolidated net income before taxes for the twelve months ended December 31, 2023, totaled $9.7 million, a 17% increase from the figure reported for the twelve months ended December 31, 2022. The Company increased the book value per share by 21% to $23.57 per share as of December 31,2023.

Additionally, the Board of Directors declared a quarterly cash dividend of $0.08 per share, payable on February 12, 2024, to shareholders of record at the close of business on January 29, 2024. The dividend is equivalent to an annual rate of $0.32 per share or 1.42%, based upon the $22.55 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 (OTCQX:RWCB) trades on the OTCQX Best Market. Companies meet high financial standards, follow best practice corporate governance, demonstrate compliance with U.S. securities laws and have a professional third-party sponsor introduction. Investors can find current financial disclosure and Real-Time Level 2 quotes 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.