Earnings Release – Redwood Capital Bancorp – Third Quarter, 2025

Company Reports Continued Strong Excess Liquidity

EUREKA, Calif.--(BUSINESS WIRE)-- On October 29, 2025, 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 nine-month period ended September 30, 2025. Redwood Capital Bank (the bank), the company’s wholly owned subsidiary, reported consistent earnings.

John Dalby, President and CEO commented, “During the third quarter of 2025, the company used its excess capital and liquidity to fully retire the holding company’s debt. The company remains liquid and well-capitalized with a leverage capital ratio of 10.67% at quarter-end. Throughout the third quarter of 2025, Redwood Capital Bank experienced consistent growth in net interest margin and earnings. Gross loans are up $5.1 million over the second quarter. Overall, the bank’s balance sheet remains strong, while earnings remain consistent. Over the third quarter of 2025, tangible book value has risen 4.4% to $28.41 as of September 30, 2025. These results reflect the Board of Directors and the management team’s commitment to the company’s long-term performance.”

The company’s total assets as of September 30, 2025, were $542 million. Total deposits stood at $485.3 million as of September 30, 2025. Total loans as of September 30, 2025, net of unearned income, were $387.4 million. Net income for the third quarter of 2025 was strong at $1,545,000. Net interest income for the three and nine months ended September 30, 2025, totaled $5,142,000 and $14,552,000 respectively. The company also reported net income for the first nine months of 2025 of $3,810,000.

Additionally, the Board of Directors declared a quarterly cash dividend of $0.09 per share, payable on November 12, 2025, to shareholders of record at the close of business on October 27, 2025. The dividend is equivalent to an annual rate of $0.36 per share or 1.37%, based upon a market price of $26.30 per common share. CEO Dalby explained, “A consistent dividend continues to be the priority of the Board of Directors and management. Additionally, to enhance shareholder value and returns, the holding company has been active in purchasing and retiring RWCB shares.”

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.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					%
	9/30/2025			9/30/2024		Change
Balance Sheet Data (at period end)
Total assets	$	542,004		$	534,174	1%
Total deposits		485,342			470,547	3%
Total loans (net)		387,356			380,926	2%
Common equity		54,838			50,868	8%
Common shares outstanding		1,930,191			1,960,374	-2%
Summary of Operations (Current Quarter)
Interest income		6,414			6,065	6%
Interest expense		1,272			1,403	-9%
Net Interest Income		5,142			4,662	10%
Non-interest income		827			882	-6%
Non-interest expense		3,782			3,495	8%
Net Income before provision		2,187			2,049	7%
Provision for loan losses		33			151	-78%
Income before taxes		2,155			1,898	14%
Income taxes		610			525	16%
Net Income		1,545			1,373	13%
Earnings per share (fully diluted)	$	0.80		$	0.70	14%
Book value per common share	$	28.41		$	25.95	9%
	Period Ended					%
	9/30/2025			9/30/2024		Change
Balance Sheet Data (at period end)
Total assets	$	542,004		$	534,174	1%
Total deposits		485,342			470,547	3%
Total loans (net)		387,356			380,926	2%
Common equity		54,838			50,868	8%
Common shares outstanding		1,930,191			1,960,374	-2%
Summary of Operations (Current Quarter)
Interest income		6,414			6,065	6%
Interest expense		1,272			1,403	-9%
Net Interest Income		5,142			4,662	10%
Non-interest income		827			882	-6%
Non-interest expense		3,782			3,495	8%
Net Income before provision		2,187			2,049	7%
Provision for loan losses		33			151	-78%
Income before taxes		2,155			1,898	14%
Income taxes		610			525	16%
Net Income		1,545			1,373	13%
Earnings per share (fully diluted)	$	0.80		$	0.70	14%
Book value per common share	$	28.41		$	25.95	9%
Summary of Operations (Year to Date)
Interest income		18,480			17,492	6%
Interest expense		3,928			3,839	2%
Net Interest Income		14,552			13,653	7%
Non-interest income		2,398			2,756	-13%
Non-interest expense		11,748			10,560	11%
Net Income before provision		5,202			5,849	-11%
Provision for loan losses		(75	)		271	-128%
Income before taxes		5,277			5,578	-5%
Income taxes		1,467			1,502	-2%
Net Income		3,810			4,076	-7%
Earnings per share (fully diluted)	$	1.97		$	2.08	-5%
Book value per common share	$	28.41		$	25.95	9%

 

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Renee Byers, CFO, (707) 444-9849

Source: Redwood Capital Bancorp