Earnings Release – Redwood Capital Bancorp – Third Quarter, 2021

Company Reports Record Growth and Continued Dividend

Redwood Capital Bank Named Top Small Business Association Lender

On October 27, 2021, 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 and nine month period ended September 30, 2021. Redwood Capital Bank, the company’s wholly owned subsidiary, reported record earnings.

Total assets as of September 30, 2021 were $589.3 million; an increase of 2% over the June 30, 2021 and a significant increase of 20% from the September 30, 2020 reported figures. Total deposits stood at $536.4 million as of September 30, 2021, an increase of 2% over June 30, 2021 and an impressive increase of 20% over the September 30, 2020 figures. Total loans as of September 30, 2021, net of unearned income, were $339.6 million.

Net interest income for the three and nine months ended September 30, 2021 totaled $4,136,000 and $11,984,000 respectively, representing an increase of 5% over the three months ended June 30, 2021 and an increase of 14% during the nine months ended September 30, 2020. The company also reported net income for the first nine months of 2021 of $4,299,000 while earnings for the first nine months of 2020 totaled $2,837,000. Book value per common share, a common measurement of shareholder value, stood at $20.02 as of September 30, 2021, a 4% increase over the previous quarter and a 14% increase over the September 30, 2020 amount.

Renee Byers, Senior Vice President and Chief Financial Officer, commented, “The Board of Directors and management anticipate Redwood Capital Bank’s positive momentum to carry through the remainder of 2021. Our dedicated staff continue to perform at a very high level and their efforts and talents are reflected in the financial results of the company. The balance sheet remains strong and we are well positioned for the future.”

Jennifer Budwig, Senior Vice President and Chief Lending Officer, added, “I am pleased to announce that Redwood Capital Bank has once again been named the number one Small Business Association (SBA) lender in Humboldt County, funding the most SBA loans in the SBA fiscal year 2021, representing 32% of all SBA loans in Humboldt County. We are sincerely honored for this distinction which demonstrates Redwood Capital Bank’s financial strength and commitment to our community.”

Additionally, the Board of Directors declared a quarterly cash dividend of $0.07 per share, payable on November 10, 2021, to shareholders of record at the close of business on October 25, 2021. The dividend payment is equivalent to an annual rate of $0.28 per share or 1.41%, based upon a market price of $19.83 per common share.

For more information regarding Redwood Capital Bancorp, please visit our website at www.redwoodcapitalbank.com, contact Renee Byers, SVP/CFO, at (707) 444-9849, or stop by our headquarters and main office at 402 “G” Street, Eureka, California 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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