Earnings Release – Redwood Capital Bancorp – First Quarter, 2026

Solid First Quarter Financial Performance – Dividend Increased

EUREKA, Calif.--(BUSINESS WIRE)--On April 29, 2026, 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 March 31, 2026. Redwood Capital Bank, the company’s wholly owned subsidiary, celebrated its twenty-second year in business by reporting solid quarterly earnings.

John Dalby, President and CEO, remarked, “Since 2004, Redwood Capital Bank has had the privilege of serving Humboldt County as your local community bank. As a locally owned and operated institution, we understand the unique needs of our community and have the ability to make decisions that directly benefit our neighbors, local businesses and families. Our commitment extends beyond banking - we are deeply invested in the long-term success and well-being of this community. We sincerely appreciate the trust you have placed in us over the past two decades and look forward to continuing to serve you for many years to come.”

Dalby noted that the company’s long-term track record of strong performance has not gone unnoticed, adding, “Consistent performance has resulted in consistent recognition. Once again, Redwood Capital Bank has been recognized by the financial industry. Congratulations to the Redwood Capital Bank staff on the receipt of the Findley Reports rating of Super Premier Performing status, as well as the 5-Star rating from Bauer Financial. Both ratings are the highest given by two of the most well-known and respected bank rating firms within the industry.”

The company continues to maintain a strong balance sheet. Total assets as of March 31, 2026, were $540.5 million. Total deposits as of March 31, 2026, were $483 million. Gross loans as of March 31, 2026, were $383 million. The company is in the desirable position with a liquidity ratio of 10.38%, and 11.08% leveraged capital ratio and 10.13% in tangible capital.

Interest income for the quarter ended March 31, 2026, totaled $6.5 million, an increase of 8% from the $6 million reported for the quarter ended March 31, 2025. The company reported net income after taxes in the first quarter of 2026 of $1.37 million, an increase of 19% from the $1.1 million reported for the quarter ended March 31, 2025. As of March 31, 2026, the book value for the company was up 12% to $29.93 per common share from the quarter ended March 31, 2025.

Additionally, the Board of Directors declared an increase to the quarterly cash dividend from $0.09 per share to $0.10 per share, payable on May 11, 2026, to shareholders of record at the close of business on April 27, 2026. From March 31, 2025, to March 31, 2026, the increase in tangible book value combined with the $0.36 dividend payments resulted in a net increase of $3.46 per share of common stock. Market value for RWCB was $30.49 per share as of close of business March 31, 2026.

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 Bank 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					%
	3/31/2026		3/31/2025			Change
Balance Sheet Data (at period end)
Total assets	$	540,589	$	519,389		4	%
Total deposits		482,868		461,146		5	%
Total loans (net)		383,440		383,033		0	%
Common equity		56,079		52,446		7	%
Common shares outstanding		1,873,710		1,954,627		-4	%
Summary of Operations (Year to Date)
Interest income		6,470		5,983		8	%
Interest expense		1,129		1,311		-14	%
Net Interest Income		5,341		4,672		14	%
Non-interest income		915		819		12	%
Non-interest expense		4,221		3,922		8	%
Net Income before provision		2,035		1,569		30	%
Provision for loan losses		138		(17	)	0	%
Income before taxes		1,897		1,586		20	%
Income taxes		527		436		21	%
Net Income		1,370		1,150		19	%
Earnings per share (fully diluted)	$	0.73	$	0.59		24	%
Book value per common share	$	29.93	$	26.83		12	%