Company Reports Strong Third Quarter Earnings – Senior Management Promotions Announced

EUREKA, CALIFORNIA – On October 31, 2018, 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 and nine month period ended September 30, 2018.  Redwood Capital Bank, the company’s wholly owned subsidiary reported strong earnings and announced the expansion of their senior management team.

John Dalby, President and CEO of the company, commented, “It gives me great pleasure to officially announce the promotion of Renee Byers from Senior Vice President/Interim Chief Financial Officer to Senior Vice President/Chief Financial Officer. She has been with Redwood Capital Bank since 2008 and has more than 25 years of financial industry experience. Ms. Byers is a 2018 graduate of the prestigious Pacific Coast Banking School. Additionally, I am pleased to announce the promotion of Michael McCoy to Senior Vice President/Risk Manager and David Tierney to Senior Vice President/IT Director. Both Michael and Dave have been with Redwood Capital Bank since 2006. Tammy Brown, SVP/Chief Credit Officer, Jennifer Budwig, SVP/Chief Lending Officer and I welcome Renee, Michael and Dave to the senior management team.”

Total assets as of September 30, 2018 were $372.7 million; an increase of 7% over the June 30, 2018 and a slight decrease of 1% from the September 30, 2017 reported figures. Total deposits stood at $340.4 million as of September 30, 2018, an increase of 7% over the June 30, 2018 and a slight decrease of 1% over the September 30, 2017 figures. Total loans as of September 30, 2018 were $277.2 million, up 2% from the prior quarter and up 7% over the quarter ended September 30, 2017.

Net interest income for the three and nine month period ended September 30, 2018 totaled $3,403,000 and $9,793,000 respectively, representing an increase of 3% and 7% over the three months ended June 30, 2018 and nine months ended September 30, 2017, respectively. The company also reported record net income for the third quarter of 2018 of $950,000 while earnings for the first nine months of 2018 totaled $3,015,000. The earnings represent a 39% increase over the first nine months of 2017. The increase in net income was attributed to increasing non-interest income, strong net interest margin and reduced tax rate. Book value per common share, a common measurement of shareholder value, stood at $13.58 as of September 30, 2018, a 3% increase over the previous quarter and a 10% increase over September 30, 2017.

CEO Dalby added, “Looking ahead to 2019, exciting things are on the horizon for the company. We eagerly anticipate the opening of our fourth branch location in Henderson Center, offering additional service and convenience to our Eureka-based clientele. 2019 will also mark Redwood Capital Bank’s 15-year anniversary. From our humble beginnings in 2004 with one branch location and 16 employees to present day – approaching four branch locations and 70 employees, we are proud to be Humboldt County’s local community bank of choice.”

Additionally, the Board of Directors declared a quarterly cash dividend of $0.07 per share, payable on November 13, 2018, to shareholders of record at the close of business on October 29, 2018. The increased dividend payment is equivalent to an annual rate of $0.28 per share or 1.46%, based upon a market price of $19.12 per common share.

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 the headquarters and main office at 402 “G” Street, Eureka, CA 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.