Earnings Release – Redwood Capital Bancorp – First Quarter, 2021

Director James R. Seiler Retires – Dividend Continued

On April 28, 2021, 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 March 31, 2021. Redwood Capital Bank, the company’s wholly owned subsidiary, celebrated its seventeen-year anniversary by reporting robust quarterly earnings and strong loan growth.

John Dalby, President and CEO remarked, “Management and the Board of Directors are proud to announce record earnings and continued deposit growth for the first quarter of 2021. Our focus has always been on the community we serve and our continued deposit growth of more than $48 million year to date is indicative of our commitment to Humboldt County. For the trailing twelve months, Redwood Capital Bank has grown deposits $171 million representing a 53% annual growth rate. Credit quality remains strong and our provision for loan loss has been bolstered. We remain very active in mortgage lending as well as small business lending.”

Dalby added, “The Board of Directors, senior management and staff would like to recognize retiring Director James R. Seiler. Jim’s financial and business acumen has been incredibly valuable to the Board and senior management over the past 12 years. Jim was truly a foundational member of the Board. His knowledge, skill and pragmatic approach will be missed by all.”

The company continues to perform in the major balance sheet categories of assets, loans and deposits. Total assets as of March 31, 2021 were $546.4 million, an increase of 48% from the same period of March 31, 2020. Total loans, net of unearned income increased to $362.2 million as of March 31, 2021, an increase of 31% from the quarter ended March 31, 2020.

Net interest income for the quarter ended March 31, 2021 totaled $3,928,000, an increase of 21% from the $3,238,000 reported for the three months ended March 2020. The company reported net income after taxes in the first quarter of 2021 of $1,417,000, up 168% from the $779,000 reported for the first quarter of 2020. The increase was primarily attributed to the outstanding performance of our staff assisting our community with deposit needs, continued Paycheck Protection Program (PPP) lending, and real estate lending needs.

Additionally, the Board of Directors declared a quarterly cash dividend of $0.07 per share, payable on May 11, 2021 to shareholders of record at the close of business on April 26, 2021. The annualized dividend of $0.28 combined with Tangible Book Value appreciation from March 31, 2020 to March 31, 2021 was 16.11%. Market value for RWCB was $20.56 as of close of business March 31, 2021 compared to $11.95 at first quarter end 2020.

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.

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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