RWCB Redwood Capital Bancorp (QX)

REDWOOD CAPITAL BANCORP (OTCBB:RWCB), the holding company for Redwood Capital Bank, announced unaudited consolidated financial results for the three and nine month period ended September 30, 2012. Furthermore, the company's wholly owned subsidiary, Redwood Capital Bank, reported their third quarterly cash dividend and increased earnings during its seventh consecutive year of profitability.

John Dalby, President and CEO of the company, commented, "The Board of Directors and management team are pleased to report positive earnings in spite of economic stagnation and increasing costs. Thanks to our supportive shareholders, loyal customers and hard-working employees, Redwood Capital Bank has been in business for almost nine years. While a lot has changed, one thing has not, our commitment to the businesses and people of Humboldt County. Redwood Capital Bank is banking on Humboldt County and we remain grateful that Humboldt County is banking with us."

Total assets as of September 30, 2012 were $246.4 million, an increase of 3% over both the June 30, 2012 and September 30, 2011 reported figures. Total deposits stood at $221 million as of September 30, 2012, an increase of 3% over both the June 30, 2011 and September 30, 2011 figures. The company also reported strong loan growth for the quarter. Total loans as of September 30, 2012, net of unearned income, were $156.3 million, an increase of 2% over the prior quarter and 7% over the quarter ended September 30, 2011. 

CEO Dalby continued, "Independent businesses are our county's backbone. We remain committed to helping local business owners create jobs and stimulate the Humboldt County economy. While general sentiment may suggest that banks are not lending, we have grown our local loan portfolio by almost $10 million in the past year alone. We are proud to be a strong, local resource and attribute our growth oriented success to our team of local financial experts who are recognized for their knowledge and dedication to customer service. We continue to be an attractive alternative for customers looking for a true business partner."

Net interest income for the three and nine months ended September 30, 2012 totaled $2,056,000 and $6,212,000, respectively, representing a decrease of 4% from the three month ended June 30, 2011 and an increase of 5% for the nine months ended September 30, 2011.   The company also reported net income for the third quarter of 2012 of $290,000 while earnings for the first nine months of 2012 were $759,000. The earnings represented a 77% increase over the June 30, 2012 quarter and a decrease of 25% over the first nine months of 2011. The fluctuations in net income were attributed to loan loss provisions and a declining interest rate environment. Book value per common share, a common measurement of shareholder value, stood at $8.14 as of September 30, 2012, a 2% increase over the previous quarter and a healthy 10% increase over September 30, 2011.

Additionally, the Redwood Capital Bancorp Board of Directors declared a quarterly cash dividend of $0.05 per share, payable on November 13, 2012, to shareholders of record at the close of business on October 31, 2012. The dividend is equivalent to an annual rate of $0.20 per share or 2.53%, based upon a market price of $7.51 per common share. Since September 2011, the company's stock price has risen by over 43% and its book value combined with dividends increased approximately 12% over the same period. 

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 the headquarters and main office at 402 "G" Street, Eureka, CA 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 - except share data)
	Period Ended		%
	9/30/2012	6/30/2012	Change
Balance Sheet Data (at period end)
Total assets	$246,406	$240,284	3%
Total deposits	221,002	215,595	3%
Total loans (net)	156,349	153,083	2%
Common equity	14,518	14,252	2%
Common shares outstanding	1,786,632	1,786,632	0%
Summary of Operations (Current Quarter)
Interest income	2,349	2,451	-4%
Interest expense	293	314	-7%
Net Interest Income	2,056	2,137	-4%
Non-interest income	332	281	18%
Non-interest expense	1,641	1,662	-1%
Net Income before provision	747	756	-1%
Provision for loan losses	250	545	-54%
Income before taxes	497	211	135%
Income taxes	207	47	340%
Net Income	290	164	77%
Earnings per share (fully diluted)	$0.16	$0.08	98%
Book value per common share	$8.14	$7.98	2%
	Period Ended		%
	9/30/2012	9/30/2011	Change
Balance Sheet Data (at period end)
Total assets	$246,406	$ 240,117	3%
Total deposits	221,002	215,596	3%
Total loans (net)	156,349	146,745	7%
Common equity	14,518	13,051	11%
Common shares outstanding	1,786,632	1,761,887	1%
Summary of Operations (Current Quarter)
Interest income	2,349	2,425	-3%
Interest expense	293	436	-33%
Net Interest Income	2,056	1,989	3%
Non-interest income	332	193	72%
Non-interest expense	1,641	1,479	11%
Net Income before provision	747	703	6%
Provision for loan losses	250	150	67%
Income before taxes	497	553	-10%
Income taxes	207	253	-18%
Net Income	290	300	-3%
Earnings per share (fully diluted)	$0.16	$0.17	-5%
Book value per common share	$8.14	$7.41	10%
Summary of Operations (Year to Date)
Interest income	7,167	7,288	-2%
Interest expense	955	1,350	-29%
Net Interest Income	6,212	5,938	5%
Non-interest income	858	620	38%
Non-interest expense	5,019	4,620	9%
Net Income before provision	2,051	1,938	6%
Provision for loan losses	845	300	182%
Income before taxes	1,206	1,638	-26%
Income taxes	447	620	-28%
Net Income	759	1,017	-25%
Earnings per share (fully diluted)	$0.42	$0.58	-26%
Book value per common share	$8.14	$7.41	10%

CONTACT: Fred Moore, CFO, (707) 444-9840