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Earnings Release – Redwood Capital Bancorp – Second Quarter, 2021

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Strong Second Quarter Earnings – Continued Dividend

EUREKA, Calif., July 28, 2021--(BUSINESS WIRE)--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 June 30, 2021. Redwood Capital Bank, the company’s wholly owned subsidiary, reported strong second quarter earnings.

John Dalby, President and CEO remarked, "As Redwood Capital Bank enters into its 18th year of operations, we remain mindful of the company’s mission to be Humboldt County’s local, community bank. The Board of Directors, management and staff are committed to providing exceptional customer service and support to our local community. Throughout 2020 and 2021, Redwood Capital Bank has experienced tremendous growth numbers as local businesses continue to discover the level of service delivered by the company’s incredible staff. Despite this growth, the company remains committed to being the community bank we have always been. This is the bottom line to Redwood Capital Bank’s continued success and long-term performance."

Total assets as of June 30, 2021 were $578.2 million, an increase of 6% from the prior quarter and 26% from the same period last year. Total loans, net of unearned income, totaled $343.2 million as of June 30, 2021, compared to $362.2 million reported for the quarter ended March 31, 2021 and $349.8 million for the quarter ended June 30, 2020. Lastly, total deposits grew to $526.8 million as of June 30, 2021, an increase of 6% over the prior quarter and 27% higher than the June 30, 2020 reported figure.

Net interest income for the quarter ended June 30, 2021 totaled $3,921,000 down slightly from the $3,928,000 reported for the three months ended March 31, 2021; however, an increase of 11% from the $3,539,000 reported for the three months ended June 30, 2020. The company also reported net income after taxes and provision expenses in the second quarter of 2021 of $1,492,000 up 5% reported for the three months ended March 31, 2021 and an increase of 34% from the $1,114,000 reported for the second quarter of 2020. Renee Byers, SVP/CFO stated, "The company’s performance is a direct reflection of the incredible teamwork and dedication to our community that is our culture at Redwood Capital Bank."

Additionally, the Board of Directors declared a quarterly cash dividend of $0.07 per share, payable on August 06, 2021, to shareholders of record at the close of business on July 26, 2021. The dividend is equivalent to an annual rate of $0.28 per share or 1.30%, based upon a market price of $21.56 per common share. CEO Dalby explained, "A consistent dividend remains a top priority of the Board and management, along with continued growth in shareholder value."

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.

Redwood Capital Bancorp

Selected Consolidated Financial Results - Unaudited

(In Thousands)

Period Ended

%

6/30/2021

3/31/2021

Change

Balance Sheet Data (at period end)

Total assets

$578,236

$546,435

6%

Total deposits

526,801

496,863

6%

Total loans (net)

343,156

362,215

-5%

Common equity

37,841

36,480

4%

Common shares outstanding

1,958,002

1,938,366

1%

Summary of Operations (Current Quarter)

Interest income

4,248

4,261

0%

Interest expense

327

333

-2%

Net Interest Income

3,921

3,928

0%

Non-interest income

1,153

1,014

14%

Non-interest expense

3,018

2,882

5%

Net Income before provision

2,056

2,060

0%

Provision for loan losses

35

105

-67%

Income before taxes

2,021

1,955

3%

Income taxes/(credit)

529

538

-2%

Net Income

1,492

1,417

5%

Earnings per common share (fully diluted)

$0.76

$0.73

4%

Book value per common share

$19.33

$18.82

3%

Period Ended

%

6/30/2021

6/30/2020

Change

Balance Sheet Data (at period end)

Total assets

$578,236

$460,130

26%

Total deposits

526,801

415,843

27%

Total loans (net)

343,156

349,826

-2%

Common equity

37,841

32,857

15%

Common shares outstanding

1,958,002

1,940,087

1%

Summary of Operations (Current Quarter)

Interest income

4,248

3,923

8%

Interest expense

327

384

-15%

Net Interest Income

3,921

3,539

11%

Non-interest income

1,153

663

74%

Non-interest expense

3,018

2,652

14%

Net Income before provision

2,056

1,550

33%

Provision for loan losses

35

0

100%

Income before taxes

2,021

1,550

30%

Income taxes

529

436

21%

Net Income

1,492

1,114

34%

Earnings per common share (fully diluted)

$0.76

$0.57

33%

Book value per common share

$19.33

$16.94

14%

View source version on businesswire.com: https://www.businesswire.com/news/home/20210728005093/en/

Contacts

Renee Byers, SVP/CFO, (707) 444-9849