Earnings Release – Redwood Capital Bancorp – Second Quarter, 2024 Strong Balance Sheet – Continued Dividend

EUREKA, CALIFORNIA - On July 31, 2024, REDWOOD CAPITAL BANCORP (OTCQX: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, 2024. Redwood Capital Bank, the company's wholly owned subsidiary, reported slight decreases for the second quarter earnings.

John Dalby, President and CEO remarked, "In the second quarter of 2024, the company continued to maintain its strong balance sheet and loan quality, combined with healthy capital and liquidity positions. Earnings per share for the quarter was $0.68 and $1.38 year-to-date. Staff engagement and focus continues to carry the institution's strong customer service ethic. I remain very proud to serve with the Redwood Capital Bank Board of Directors and staff, as they serve and support the Humboldt County community."

The company strategically manages a slimmer balance sheet to enhance performance while transitioning in the increased rate environment. As of June 30, 2024, the company's total assets were $520 million. Total loans net of unearned income was $383 million as of June 30, 2024. Total deposits were $461 million as of June 30, 2024.

The continued high performing balance sheet produced net interest income of $4.3 million for the second quarter ending June 30, 2024, and $9 million year-to-date. The company recorded a net income after taxes for the second quarter ending June 30, 2024, of $1.3 million and $2.7 million year-to-date. These strong earnings have increased book value per share by 2% or $0.42 to $24.41 for the second quarter ending June 30, 2024, and an increase to book value of $0.84 year-to-date. Renee Byers, SVP/Chief Financial Officer stated, "Redwood Capital Bank continues to maintain a strong balance sheet while providing excellent service to our shareholders, customers and community."

Additionally, the Board of Directors declared a quarterly cash dividend of $0.08 per share, payable on August 9, 2024, to shareholders of record at the close of business on July 29, 2024. The dividend is equivalent to an annual rate of $0.32 per share. CEO Dalby added, "Redwood Capital Bancorp continues to provide consistent earnings for our shareholders while remaining an economic foundation for the community."

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 (OTCQX:RWCB) trades on the OTCQX Best Market. Companies meet high financial standards, follow best practice corporate governance, demonstrate compliance with U.S. securities laws and have a professional third-party sponsor introduction. Investors can find current financial disclosure and Real-Time Level 2 quotes for the Company on www.otcmarkets.co

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.