Record Second Quarter Earnings ­ Continued Dividend

EARNINGS RELEASE – July 29, 2015 

EUREKA, CALIFORNIA – On July 29, 2015, REDWOOD CAPITAL BANCORP (RWCB.OB), the only locally owned and operated community bank holding company in Humboldt County, announced unaudited financial results for the three month period ended June 30, 2015. Redwood Capital Bank, the company’s wholly owned subsidiary reported record second quarter earnings and strong local loan growth while the Board of Directors affirmed a continuation of its quarterly dividend.

John Dalby, President and CEO remarked, “We are pleased with the continued high level of performance of both the bank and the holding company. July marks the one year anniversary of the Arcata Branch and we are proud to report that it has surpassed our goals and expectations for new deposit growth. Now three branches strong, Redwood Capital Bank has successfully expanded its footprint within Humboldt County.”

Redwood Capital Bank again posted strong growth in the major balance sheet categories of assets, loans and deposits. Total assets as of June 30, 2015 were $304.2 million, an increase of 4% from the prior quarter and an increase of 16% from the same period last year. Total loans, net of unearned income, rose to $212.9 million as of June 30, 2015, an increase of 3% from the March 31, 2015 figures and an increase of 13% over the quarter ended June 30, 2014. Lastly, total deposits grew to $275.4 million as of June 30, 2015, an increase of 4% over the prior quarter and 17% higher than the June 30, 2014 reported figure.

Net interest income for the quarter ended June 30, 2015 totaled $2,722,000, up 3% from the $2,630,000 reported for the three months ended March 31, 2015 and up 12% from the $2,432,000 reported for the three months ended June 30, 2014. The company also reported record net income after taxes and provision expenses in the second quarter of 2015 of $572,000, up 28% reported for the three months ended March 31, 2015 and up 27% from the $450,000 reported for the second quarter of 2014. The increase was primarily attributed to strong loan growth, increased Fannie Mae loan originations, strong cost control, and improving overall credit quality. “As part of our mission to be an economic foundation for Humboldt County, Redwood Capital Bank continues to invest local deposits back into our community by providing loans to businesses, individuals and families,” stated Dalby.

Additionally, the Board of Directors declared a quarterly cash dividend of $0.06 per share, payable on August 7, 2015, to shareholders of record at the close of business on July 27, 2015. The dividend is equivalent to an annual rate of $0.24 per share or 2.14%, based upon a market price of $11.24 per common share. CEO Dalby explained, “We are pleased to continue our dividend payments. We remain confident in our ability to continue to grow in the future.”

For more information regarding Redwood Capital Bancorp, please visit our website at, contact Fred Moore, CFO, at (707) 444­9840, or stop by our headquarters and main office at 402 “G” Street, Eureka, California 95501.

This press release may contain forward­looking 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 forward­looking statements, which reflect management’s view only as of the date hereof. The Bank undertakes no obligation to publicly revise these forward­looking statements to reflect subsequent events or circumstances.