Earnings Release – Redwood Capital Bancorp – First Quarter, 2022

Strong First Quarter Financial Performance – Dividend Continued

On April 27, 2022, 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, 2022. Redwood Capital Bank, the company’s wholly owned subsidiary, celebrated its eighteen-year anniversary by reporting robust quarterly earnings.

The company continues to perform in the major balance sheet categories of assets, loans and deposits. Total assets as of March 31, 2022 were $579.5 million, an increase of 6% from the same period of March 31, 2021. Due to the forgiveness of PPP loans total loans, net of unearned income reduced to $337.1 million as of March 31, 2022, a decrease of 7% from the quarter ended March 31, 2021.

Net interest income for the quarter ended March 31, 2022 totaled $3,572,000, a decrease from the $3,928,000 reported for the three months ended March 2021. The company reported net income after taxes in the first quarter of 2022 of $823,000. As of March 31, 2022 the book value for the company was up 1% to $19.06 per common share from the quarter ended March 31, 2021.

Since inception, Redwood Capital Bank’s primary focus has always been on the community we serve. Redwood Capital Bank’s deposit growth is symbolic of the long-standing commitment we have to Humboldt County. We are extremely proud that we continue to serve our customers and produce a strong financial performance for our shareholders. Taking care of our shareholders and customers is paramount to how we do business every day. We are very pleased to announce that in the first quarter of 2022, Redwood Capital Bank again received the distinction of being one of California’s Super Premier Performing Banks by The Findley Reports and the 5-Star designation from Bauer Financial, Inc. These are the highest ratings available from both well-known and respected bank rating firms.

Additionally, the Board of Directors declared a quarterly cash dividend of $0.07 per share, payable on May 10, 2022 to shareholders of record at the close of business on April 25, 2022. The annualized dividend of $0.28 combined with Tangible Book Value appreciation from March 31, 2021 to March 31, 2022 was 2.76%. Market value for RWCB was $22.60 per share as of close of business March 31, 2022.

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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