EARNINGS RELEASE: Company Reports Strong Third Quarter Earnings – Cash Dividend Continued

EUREKA, CALIFORNIA – On October 30, 2019, REDWOOD CAPITAL BANCORP (RWCB.OB), the holding company for Redwood Capital Bank, announced unaudited consolidated financial results for three and nine month period ended September 30, 2019.  The only locally owned and operated community bank holding company reported strong earnings and confirmed the continuation of its quarterly dividend payment during its thirteenth consecutive year of profitability.

John Dalby, President and CEO of the company, commented, “The Board of Directors and management team are encouraged by the continued progress of the bank. Despite the current challenges in the interest rate environment, to date, Redwood Capital Bank has been able to maintain strong margins. With shareholder value and community service as core values, Redwood Capital Bancorp’s strong performance and financial position continue to increase our ability to serve all of our stakeholders.”

Total assets as of September 30, 2019 were $374.6 million; an increase of 4% over the June 30, 2019 and a slight increase of 1% from the September 30, 2018 reported figures. Total deposits stood at $333.3 million as of September 30, 2019, an increase of 2% over the June 30, 2019 and a slight decrease of 2% over the September 30, 2018 figures. Total loans as of September 30, 2019, net of unearned income, were $273.7 million, decreasing 1% from the prior quarter and as well as the quarter ended September 30, 2018.

CEO Dalby continued, “Being the only community bank serving Humboldt County, we are in a unique position to relate to and understand our customers – they are our friends and neighbors. Unlike out-of-area corporate banks, monies deposited locally stay here helping to strengthen our economy. Communities need a strong, engaged, local bank and Redwood Capital Bank is proud to be your local financial partner.”

Net interest income for the three and nine months ended September 30, 2019 totaled $3,472,000 and $10,601,000 respectively, representing an increase of 2% and 8% over the three months ended June 30, 2019 and nine months ended September 30, 2018, respectively. The company also reported record net income for the third quarter of 2019 of $1,257,000 while earnings for the first nine months of 2019 totaled $3,296,000. The earnings represented a 9% increase over the first nine months of 2018. Book value per common share, a common measurement of shareholder value, stood at $15.78 as of September 30, 2019, a 4% increase over the previous quarter and a 16% increase over the September 30, 2018 amount.

CEO Dalby added, “In September, Redwood Capital Bancorp refinanced its holding company senior debt with subordinated debt. This refinance will provide enhanced security in the company’s long-term capital structure while reducing the interest rate. There are no restrictions as to the prepayment of the debt.”

Additionally, the Board of Directors declared a quarterly cash dividend of $0.07 per share, payable on November 12, 2019, to shareholders of record at the close of business on October 28, 2019. The dividend payment is equivalent to an annual rate of $0.28 per share or 1.66%, based upon a market price of $16.87 per common share.

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 the headquarters and main office at 402 “G” Street, Eureka, CA 95501.

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.