Earnings Release – Redwood Capital Bancorp – First Quarter, 2023

Strong First Quarter Financial Performance – Dividend Continued

On April 26, 2023, 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-month period ended March 31, 2023. Redwood Capital Bank, the company’s wholly owned subsidiary, celebrated its nineteen-year anniversary by reporting robust quarterly earnings.

John Dalby, President and CEO, remarked, “Management and the Board of Directors are delighted with our excellent start in 2023. We remain grateful to our staff for their outstanding work and to our customers and shareholders for the relationships we have developed and fostered over the past nineteen years.”

Dalby noted that the company’s long-term track record of strong performance has not gone unnoticed, adding, “Consistent performance has resulted in consistent recognition. Once again, Redwood Capital Bank has been recognized by the financial industry. Congratulations to the Redwood Capital Bank staff on the receipt of the Findley Reports rating of Super Premier Performing status, as well as the 5-Star rating from Bauer Financial. Both ratings are the highest given from two of the most well-known and respected bank rating firms within the industry. Additionally, Redwood Capital Bank received the Customer Service Award from the Greater Eureka Chamber of Commerce at their Annual Gala this past January.”

The company continues to maintain a strong balance sheet. Total assets as of March 31, 2023, were $511.5 million. Total deposits as of March 31, 2023, were $459 million. Gross loans increased 13% to $379.8 million from March 31, 2022, to March 31, 2023. The company is in the desirable position with a liquidity ratio of 17.76%, an 11.33% leveraged capital ratio and 10.19% in tangible capital.

Net interest income for the quarter ended March 31, 2023, totaled $4.8 million, an increase of 34% from the $3.6 million reported for the quarter ended March 31, 2022. The company reported net income after taxes in the first quarter of 2023 of $1.8 million, an increase of 122% from the $823,000 reported for the quarter ended March 31, 2022. As of March 31, 2023, the book value for the company was up 9% to $20.85 per common share from the quarter ended March 31, 2022.

Additionally, the Board of Directors declared a quarterly cash dividend of $0.08 per share, payable on May 9, 2023 to shareholders of record at the close of business on April 24, 2023. The annualized dividend of $0.32 combined with Tangible Book Value appreciation from March 31, 2022 to March 31, 2023 was 11.07%. Market value for RWCB was $17.31 per share as of close of business March 31, 2023.

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 Bank undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.

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