RWCB Redwood Capital Bancorp (QX)

On May 2, 2012, REDWOOD CAPITAL BANCORP (OTCBB: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, 2012. Redwood Capital Bank, the company's wholly owned subsidiary, celebrated its eighth year anniversary by reporting strong profits as well as record loan levels.

John Dalby, President and CEO of the company, remarked, "Management and the Board of Directors are pleased with the fine start in 2012, particularly with regard to continued profitability and our year-over-year loan growth. The strong growth and financial returns are the result of the collective efforts of a very talented team of bankers who take a personal interest in all their clients. With this team and the new hires we have recently made, we look forward to continued profitability and growth throughout 2012 and for many years to come."

Redwood Capital Bank's consistent track record and strong financial performance have not gone unnoticed.  Earlier this year, the company announced that for 2011, the bank has been awarded the prestigious Super Premier Performance designation by The Findley Reports for the second consecutive year. Additionally for 2011, the bank has garnered a Bauer Financial rating of Five Star. These are the highest ratings possible from two of the most well-known and respected bank rating firms.

The company again posted strong growth in the major balance sheet categories of assets, loans and deposits. Total assets as of March 31, 2012 were $236.6 million, an increase of 8% from the same period last year. Total loans as of March 31, 2012, net of unearned income, rose to $151.8 million, an increase of 4% over the quarter ended March 31, 2011. Total deposits grew to $211.9 million as of March 31, 2012, an increase of 6% over the March 31, 2011 figure. 

Net interest income for the quarter ended March 31, 2012 totaled $2,019,000, up 1% from the $1,993,000 reported for the three months ended March 31, 2011. The company reported net income after taxes and provision expenses of $298,000, down 33% from the $447,000 reported in the first quarter of 2011. The decrease was primarily attributed to increased income taxes. "Our strong balance sheet provides us with an excellent platform from which we can take advantage of growth opportunities within our marketplace. We are actively seeking new business opportunities to enhance our position as the area's only local community bank," stated Dalby.

Additionally, Redwood Capital Bancorp announced that the 2012 Annual Meeting of Shareholders will be held on Wednesday, May 16, 2012, 6:00 p.m. at the Wharfinger Building, 1 Marina Way in Eureka.

For more information regarding Redwood Capital Bancorp, please visit our website at www.redwoodcapitalbank.com, contact Fred Moore, CFO, at (707) 444-9840, or stop by our headquarters and main office at 402 "G" Street, Eureka, California 95501.  

The Redwood Capital Bancorp logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=11463

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)
	Period Ended		%
	3/31/2012	12/31/2011	Change
Balance Sheet Data (at period end)
Total assets	$236,615	$241,666	-2%
Total deposits	211,926	216,779	-2%
Total loans (net)	151,811	144,514	5%
Common equity	14,008	13,760	2%
Common shares outstanding	1,779,320	1,761,887	1%
Summary of Operations (Current Quarter)
Interest income	2,367	2,495	-5%
Interest expense	348	416	-16%
Net Interest Income	2,019	2,079	-3%
Non-interest income	245	220	11%
Non-interest expense	1,716	1,654	4%
Net Income before provision	548	645	-15%
Provision for loan losses	50	0	100%
Income before taxes	498	645	-23%
Income taxes/(credit)	200	-46	535%
Net Income	298	691	-57%
Earnings per common share (fully diluted)	$0.17	$0.39	-57%
Book value per common share	$7.87	$7.80	1%
	Period Ended		%
	3/31/2012	3/31/2011	Change
Balance Sheet Data (at period end)
Total assets	$236,615	$219,710	8%
Total deposits	211,926	200,021	6%
Total loans (net)	151,811	145,350	4%
Common equity	14,008	12,311	14%
Common shares outstanding	1,779,320	1,761,887	1%
Summary of Operations (Year to Date)
Interest income	2,367	2,450	-3%
Interest expense	348	457	-24%
Net Interest Income	2,019	1,993	1%
Non-interest income	245	206	19%
Non-interest expense	1,716	1,627	5%
Net Income before provision	548	572	-4%
Provision for loan losses	50	0	100%
Income before taxes	498	572	-13%
Income taxes/(credit)	200	125	60%
Net Income	298	447	-33%
Earnings per common share (fully diluted)	$0.17	$0.25	-34%
Book value per common share	$7.87	$6.99	13%

CONTACT: Fred Moore, CFO
         (707) 444-9840
         www.redwoodcapitalbank.com