RWCB Redwood Capital Bancorp (QX)

On July 30, 2013, REDWOOD CAPITAL BANCORP (RWCB.OB), the only locally owned and operated community bank holding company in Humboldt County, announced unaudited financial results for the three month period ended June 30, 2013. The company reported record quarterly earnings and robust local loan growth while the Board of Directors announced a continuation of its recently increased quarterly dividend.

John Dalby, President and CEO remarked, "The Board of Directors and Senior Management are delighted with the excellent start in 2013. The earnings performance and balance sheet trends continue to demonstrate positive momentum, led by improving net income, a stronger balance sheet and positive progression in new business development. We look forward to serving the Arcata marketplace later this year with the same passion and quality that we are known for in both Eureka and Fortuna."

The company again posted strong growth in the major balance sheet categories of assets, loans and deposits. Total assets as of June 30, 2013 were $246.9 million, an increase of 3% from the same period last year. Total loans, net of unearned income, rose to $165.8 million as of June 30, 2013, an increase of 8% over the quarter ended June 30, 2012. Lastly, total deposits grew to $221.9 million as of June 30, 2013, an increase of 3% over the June 30, 2012 reported figure.

Net interest income for the quarter ended June 30, 2013 totaled $2,253,000, up 8% from the $2,090,000 reported for the three months ended March 31, 2013 and up 5% from the $2,137,000 reported for the three months ended June 30, 2012. The company reported record net income after taxes and provision expenses in the second quarter of 2013 of $434,000, up a sharp 18% from the $368,000 reported for the first quarter of 2013 and up a vast 154% for the three months ended June 30, 2012. The company also reported fully diluted earnings per common share of $.21, up 5% from the three months ended March 31, 2013 and up 151% from the three months ended June 30, 2012. The increase was primarily attributed to increased Fannie Mae loan originations, strong cost controls and improving overall credit quality. "Our lending activity continues at a brisk pace. The current marketplace remains highly competitive and challenging; one that we are addressing with a focus on value, a top-notch customer experience and by providing a truly local option," stated Dalby.

Additionally, the Board of Directors declared a quarterly cash dividend of $0.055 per share, payable on August 2, 2013, to shareholders of record at the close of business on July 29, 2013. The dividend is equivalent to an annual rate of $0.22 per share or 2.72%, based upon a market price of $8.10 per common share. CEO Dalby explained, "We are pleased to continue our dividend payments as a sign of our belief in the financial strength of the company while enhancing the return to those that have entrusted us with their investment. We remain confident that our first half performance is indicative of the opportunities available to us over the remainder of the year and beyond."

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.  

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		%
	6/30/2013	3/31/2013	Change
Balance Sheet Data (at period end)
Total assets	$246,853	$244,302	1%
Total deposits	221,946	218,733	1%
Total loans (net)	165,830	160,871	3%
Common equity	14,641	14,930	-2%
Common shares outstanding	1,808,382	1,808,382	0%
Summary of Operations (Current Quarter)
Interest income	2,457	2,340	5%
Interest expense	204	250	-18%
Net Interest Income	2,253	2,090	8%
Non-interest income	305	407	-25%
Non-interest expense	1,835	1,871	-2%
Net Income before provision	723	626	16%
Provision for loan losses	25	50	-50%
Income before taxes	698	576	21%
Income taxes/(credit)	264	208	27%
Net Income	434	368	18%
Earnings per common share (fully diluted)	$0.21	$0.20	5%
Book value per common share	$8.10	$8.27	-2%
	Period Ended		%
	6/30/2013	6/30/2012	Change
Balance Sheet Data (at period end)
Total assets	$246,853	$240,284	3%
Total deposits	221,946	215,595	3%
Total loans (net)	165,830	153,083	8%
Common equity	14,641	14,242	3%
Common shares outstanding	1,808,382	1,786,632	1%
Summary of Operations (Current Quarter)
Interest income	2,457	2,451	0%
Interest expense	204	314	-35%
Net Interest Income	2,253	2,137	5%
Non-interest income	305	281	9%
Non-interest expense	1,835	1,662	10%
Net Income before provision	723	756	-4%
Provision for loan losses	25	545	-95%
Income before taxes	698	211	231%
Income taxes	264	40	560%
Net Income	434	171	154%
Earnings per common share (fully diluted)	$0.21	$0.09	151%
Book value per common share	$8.10	$7.97	2%

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