Earnings Release – Redwood Capital Bancorp – Year-End 2025

13% Increase in Book Value Per Share - Cash Dividend Affirmed

EUREKA, Calif.--(BUSINESS WIRE)--REDWOOD CAPITAL BANCORP (“the Company”) (OTCQX:RWCB), the only locally owned and operated community bank holding company in Humboldt County, announced unaudited financial results for the three and twelve month periods ended December 31, 2025. Redwood Capital Bank (“the Bank”), the company’s wholly owned subsidiary, reported consistent earnings.

President and CEO John Dalby stated, “As we conclude another successful year, I am pleased to share our year-end earnings, which reflect the strength and stability of our community-focused institution. Our strong liquidity and solid capital position underscore our commitment to financial soundness and ensure we remain a trusted partner for our customers and shareholders.”

Dalby added, “The performance of the institution in 2025 mirrors the results of 2024, demonstrating stability in capital, liquidity, earnings and asset quality. Redwood Capital Bancorp used its excess capital and liquidity to pay down the holding company line of credit to zero and to repurchase shares of RWCB. During the year, the holding company repurchased 98,861 shares for a total of $2,575,404, with all shares purchased below book value. As a result of the reduction in outstanding shares, the company experienced 3% growth in earnings per share. With strong capital, liquidity, earnings and a highly capable staff, the institution is well positioned for the future.”

As of December 31, 2025, total assets were $529 million, with total deposits of $471.7 million. Net loans, excluding unearned income, totaled $381.7 million. For the twelve months ended December 31, 2025, consolidated net income before taxes was $5.2 million. The Company also increased book value per share by 13% to $29.41 as of year-end 2025.

Additionally, the Board of Directors declared a quarterly cash dividend of $0.09 per share, payable on February 09, 2026, to shareholders of record at the close of business on January 26, 2026. The dividend is equivalent to an annual rate of $0.36 per share or 1.26%, based upon the $28.50 market price as of year-end.

For more information regarding Redwood Capital Bancorp, please visit our website at www.redwoodcapitalbank.com, contact Renee Byers, CFO, at [phone], 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.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 Company undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.

Redwood Capital Bancorp
Selected Consolidated Financial Results - Unaudited
(In Thousands - except share data)
	Period Ended						%
	12/31/2025			9/30/2025			Change
Balance Sheet Data (at period end)
Total assets	$	529,013		$	542,004		-2.40	%
Total deposits		471,714			485,342		-2.81	%
Total loans (net)		381,678			387,356		-1.47	%
Common equity		55,108			54,838		0.49	%
Common shares outstanding		1,873,710			1,930,191		-2.93	%
Summary of Operations (Current Quarter)
Interest income		6,289			6,414		-1.95	%
Interest expense		1,165			1,272		-8.41	%
Net Interest Income		5,124			5,142		-0.35	%
Non-interest income		701			827		-15.24	%
Non-interest expense		4,095			3,782		8.28	%
Net Income before provision		1,730			2,187		-20.90	%
Provision for loan losses		(166	)		33		-603.03	%
Income before taxes		1,896			2,155		-12.02	%
Income taxes		521			610		-14.59	%
Net Income		1,375			1,545		-11.00	%
Earnings per share (fully diluted)	$	0.73		$	0.80		-8.32	%
Book value per common share	$	29.41		$	28.41		3.52	%
	Period Ended						%
	12/31/2025			12/31/2024			Change
Balance Sheet Data (at period end)
Total assets	$	529,013		$	528,261		0.14	%
Total deposits		471,714			471,708		0.00	%
Total loans (net)		381,678			382,638		-0.25	%
Common equity		55,108			50,572		8.97	%
Common shares outstanding		1,873,710			1,958,253		-4.32	%
Summary of Operations (Current Quarter)
Interest income		6,289			6,016		5	%
Interest expense		1,165			1,322		-12	%
Net Interest Income		5,124			4,694		9	%
Non-interest income		701			778		-10	%
Non-interest expense		4,095			3,864		6	%
Net Income before provision		1,730			1,608		8	%
Provision for loan losses		(166	)		(38	)	0	%
Income before taxes		1,896			1,646		15	%
Income taxes		521			452		15	%
Net Income		1,375			1,194		15	%
Earnings per share (fully diluted)	$	0.73		$	0.61		20	%
Book value per common share	$	29.41		$	25.83		14	%
Summary of Operations (Year to Date)
Interest income		24,769			23,509		5	%
Interest expense		5,093			5,161		-1	%
Net Interest Income		19,676			18,348		7	%
Non-interest income		3,099			3,535		-12	%
Non-interest expense		15,843			14,424		10	%
Net Income before provision		6,932			7,459		-7	%
Provision for loan losses		(240	)		233		-203	%
Income before taxes		7,172			7,226		-1	%
Income taxes		1,988			1,954		2	%
Net Income		5,185			5,272		-2	%
Earnings per share (fully diluted)	$	2.77		$	2.69		3	%
Book value per common share	$	29.41		$	25.83		14	%