Earnings Release: Record Growth and Continued Dividend

EUREKA, CALIFORNIA – On October 28, 2020, 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, 2020.  The only locally owned and operated community bank holding company reported record earnings.

John Dalby, President and CEO of the company, commented, “The Board of Directors and management are pleased to report continued earnings growth this quarter. The bank’s performance is highlighted by the constant, strong performance in mortgage operations, which continues to break historic records. Superior customer service combined with a genuine commitment to our community continue to be the hallmark of the institution. The bank has grown more than 34% over the past six months without any reduction in the quality of service. We couldn’t be more proud of our staff and their accomplishments.”

Total assets as of September 30, 2020 were $492 million; an increase of 7% over the June 30, 2020 and a significant increase of 31% from the September 30, 2019 reported figures. Total deposits stood at $446.1 million as of September 30, 2020, an increase of 7% over the June 30, 2020 and a significant increase of 34% over the September 30, 2019 figures. Total loans as of September 30, 2020, net of unearned income, were $354.5 million, an increase of 1% from the prior quarter and 30% increase over the quarter ended September 30, 2019.

CEO Dalby continued, “As Humboldt County’s only local, community bank, Redwood Capital Bank continues to support our area in these challenging times. During the quarter, the bank provided Visa gift cards to the staff to be used to make purchases at local businesses. This “RCB Share the Love – Shop Local” campaign can be seen on our social media platforms. Additionally, the bank recently worked with Pay it Forward Humboldt and the Southern Trinity Volunteer Fire Department to donate much-needed items to fire evacuees in our area.

Net interest income for the three and nine months ended September 30, 2020 totaled $3,768,000 and $10,545,000 respectively, representing an increase of 9% over the three months ended June 30, 2020 and a slight decrease of 1% during the nine months ended September 30, 2019. The company also reported net income for the first nine months of 2020 of $2,837,000 while earnings for the first nine months of 2019 totaled $3,296,000. The difference in year-to-date earnings from 2019 to 2020 is attributed to $608,000 in provision for loan loss taken as a precaution due to economic uncertainty. Book value per common share, a common measurement of shareholder value, stood at $17.57 as of September 30, 2020, a 4% increase over the previous quarter and an 11% increase over the September 30, 2019 amount.

Additionally, the Board of Directors declared a quarterly cash dividend of $0.07 per share, payable on November 10, 2020, to shareholders of record at the close of business on October 26, 2020. The dividend payment is equivalent to an annual rate of $0.28 per share or 2.36%, based upon a market price of $11.84 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.