EARNINGS RELEASE - Company Celebrates Fourteenth Anniversary with Record First Quarter Earnings – Dividend Increased

EUREKA, CALIFORNIA – On May 2, 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 month period ended March 31, 2018. Redwood Capital Bank, the company’s wholly owned subsidiary, celebrated its fourteen-year anniversary by reporting record quarterly earnings and strong loan growth while the Board of Directors increased its standing quarterly dividend.

John Dalby, President and CEO remarked, “Management is delighted with our excellent first quarter results. We are excited that construction has begun at the Henderson Center location and we anticipate Redwood Capital Bank’s fourth branch to be open by year-end.”

Dalby added that the company’s long-term track record of strong performance has not gone unnoticed. “Congratulations to the Redwood Capital Bank staff for receiving The Findley Reports rating of Super Premier Performing, the highest rating given from one of the most well-known and respected bank rating firms within the industry. On a local level, Redwood Capital Bank was voted Best Bank by the readers of the Times-Standard for the fourth consecutive year. I am very proud of what we have accomplished and the incredible work being done by our team.”

The company posted growth in the major balance sheet categories of assets, loans and deposits. Total assets as of March 31, 2018 were $341 million, an increase of 5% from the same period last year. Total loans, net of unearned income, grew to $259.4 million as of March 31, 2018, an increase of 4% over the quarter ended March 31, 2017. Total deposits grew to $310.5 million as of March 31, 2018, an increase of 5% over the March 31, 2017 figure. Net interest income for the quarter ended March 31, 2018 totaled $3,090,000, up 5% from the $2,946,000 reported for the three months ended March 2017. The company reported record net income after taxes in the first quarter of 2018 of $957,000, up a strong 40% from the $683,000 reported for the first quarter of 2017. The increase was primarily attributed to continued loan growth, exceptional credit quality and strong cost controls.

Renee Byers, VP/Interim Chief Financial Officer noted, “Redwood Capital Bank’s core deposits and loan portfolio continue to show solid growth. The company’s commitment to providing exceptional customer service and community involvement are key contributors to our overall success.

Additionally, the Board of Directors declared an increase in the quarterly cash dividend from $0.065 to $0.07 per share, payable on May 15, 2018, to shareholders of record at the close of business on April 30, 2018. The dividend is equivalent to an annual rate of $0.28 per share or 1.68%, based upon a market price of $16.65 per common share. CEO Dalby explained, “We are pleased to announce an increased dividend as a sign of our belief in the financial strength of the company and our confidence in the ability to profitably grow in the future.”

For more information regarding Redwood Capital Bancorp, please visit our website at www.redwoodcapitalbank.com, contact Renee Byers, VP/Interim 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.