Earnings Release – Redwood Capital Bancorp – Third Quarter, 2026

Higher loan-loss provisions and operating expenses accompanied year-over-year growth in quarterly and nine-month earnings.

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Company Announces Shasta County Loan Production Office and Community Development Financial Institution Designation (CDFI)

EUREKA, Calif.--(BUSINESS WIRE)-- On October 28, 2026, 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, 2026. Redwood Capital Bank (the Bank), the Company’s wholly owned subsidiary, reported consistent earnings.

Jennifer P. Budwig, President commented, “During the third quarter of 2026, the Company remains well-capitalized with a capital ratio of 11.26% at quarter-end. Throughout the third quarter of 2026, Redwood Capital Bank experienced consistent growth in net interest margin at 4.23%. Gross loans are up $29.4 million year to date. Overall, the Bank’s balance sheet remains strong, while earnings remain consistent. As of the third quarter of 2026, tangible book value has risen 7% to $30.46 with earnings per share (EPS) increasing 28% to $2.52 per share compared to the same period in 2025. These results reflect the Board of Directors and the management team’s commitment to the Company’s long-term performance.”

Budwig added, “I am pleased to announce Redwood Capital Bank's expansion into Shasta County with the establishment of a non-branch, Loan Production Office (LPO) in Redding, California. This exciting new chapter allows us to extend our relationship-focused approach to commercial lending into the greater Redding area. Equally exciting is Redwood Capital Bank’s recent certification as a Community Development Financial Institution (CDFI), an important milestone that reinforces our mission as a community bank. This designation provides additional opportunities to expand access to capital, support local businesses and strengthen the communities we serve. As we look ahead, we remain focused on responsible growth, exceptional customer service and making a meaningful difference in the lives of our customers and communities.”

The Company’s total assets as of September 30, 2026, were $553.7 million. Total deposits stood at $495 million as of September 30, 2026. Total loans as of September 30, 2026, net of unearned income, were $411.1 million. Net income for the third quarter of 2026 was strong at $1,759,000. Net interest income for the three and nine months ended September 30, 2026, totaled $5,684,000 and $16,420,000 respectively. The Company also reported net income for the first nine months of 2026 of $4,706,000.

Additionally, the Board of Directors declared a quarterly cash dividend of $0.10 per share, payable on November 12, 2026, to shareholders of record at the close of business on October 26, 2026. The dividend is equivalent to an annual rate of $0.40 per share or 1.16%, based upon a market price of $34.61 per common share.

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					%
		9/30/2026		9/30/2025			Change
Balance Sheet Data (at period end)
Total assets		$553,732		$542,004			2	%
Total deposits		495,014		485,342			2	%
Total loans (net)		411,134		387,356			6	%
Common equity		56,882		54,838			4	%
Common shares outstanding		1,867,559		1,930,191			-3	%
Summary of Operations (Current Quarter)
Interest income		6,819		6,414			6	%
Interest expense		1,135		1,272			-11	%
Net Interest Income		5,684		5,142			11	%
Non-interest income		959		827			16	%
Non-interest expense		4,004		3,782			6	%
Net Income before provision		2,639		2,187			21	%
Provision for loan losses		195		33			491	%
Income before taxes		2,445		2,155			13	%
Income taxes		686		610			12	%
Net Income		1,759		1,545			14	%
Earnings per share (fully diluted)		$0.94		$0.80			18	%
Book value per common share		$30.46		$28.41			7	%
		Period Ended					%
		9/30/2026		9/30/2025			Change
Balance Sheet Data (at period end)
Total assets		$553,732		$542,004			2	%
Total deposits		495,014		485,342			2	%
Total loans (net)		411,134		387,356			6	%
Common equity		56,882		54,838			4	%
Common shares outstanding		1,867,559		1,930,191			-3	%
Summary of Operations (Current Quarter)
Interest income		6,819		6,414			6	%
Interest expense		1,135		1,272			-11	%
Net Interest Income		5,684		5,142			11	%
Non-interest income		959		827			16	%
Non-interest expense		4,004		3,782			6	%
Net Income before provision		2,639		2,187			21	%
Provision for loan losses		195		33			491	%
Income before taxes		2,445		2,155			13	%
Income taxes		686		610			12	%
Net Income		1,759		1,545			14	%
Earnings per share (fully diluted)		$0.94		$0.80			18	%
Book value per common share		$30.46		$28.41			7	%
Summary of Operations (Year to Date)
Interest income		19,829		18,480			7	%
Interest expense		3,409		3,928			-13	%
Net Interest Income		16,420		14,552			13	%
Non-interest income		2,790		2,398			16	%
Non-interest expense		12,369		11,748			5	%
Net Income before provision		6,841		5,202			32	%
Provision for loan losses		441		(75	)		-688	%
Income before taxes		6,401		5,277			21	%
Income taxes		1,695		1,467			16	%
Net Income		4,706		3,810			24	%
Earnings per share (fully diluted)		$2.52		$1.97			28	%
Book value per common share		$30.46		$28.41			7	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20261028937720/en/

Renee Byers, CFO, (707) 444-9849

Source: Redwood Capital Bancorp