RWCB Redwood Capital Bancorp (QX)

REDWOOD CAPITAL BANCORP (OTCBB:RWCB.OB), the only locally owned and operated community bank holding company in Humboldt County, announced unaudited financial results for the three and twelve month periods ended December 31, 2009. The company reported continued strong earnings and growth in spite of a challenging banking environment.

President and CEO John Dalby stated, “Our entire team is tremendously proud of the Company’s fourth quarter and full year results. In the most challenging economic environment since the Great Depression and in spite of soaring FDIC insurance premiums and increasing credit related costs, we continue to produce strong financial results. As many banks struggle to survive or fail altogether, our increased growth and profitability is a positive affirmation that Humboldt County values the security, strength and personal connection associated with a locally owned and operated bank. These results reflect not only the hard work of our entire banking team but the loyalty and support of our customers. We work closely with our customers in good times and even more closely in tough times, because their success ensures our success.”

Total assets as of December 31, 2009 were $186.3 million, a slight decrease of 2% from the September 30, 2009 and a sharp increase of 15% over the December 31, 2008 reported figures. Total deposits stood at $169.1 million as of December 31, 2009, a decrease of 2% from the September 30, 2009 figures and an increase of 14% over the December 31, 2008 numbers. While the Company reported no loan growth for the quarter ended December 31, 2009, they reported solid loan growth of 6% for the year ended December 31, 2009.

Consolidated net interest income for the three and twelve months ended December 31, 2009 totaled $1,825,000 and $6,742,000, an increase of 4% and 15% from the three and twelve months ended September 30, 2009 and December 31, 2008, respectively. The company also reported a sharp increase in consolidated net income before taxes for the three and twelve month ended December 31, 2009 of $548,000 and $427,000, an increase of 51% and 187% from the three and twelve months ended September 30, 2009 and December 31, 2008, respectively. The increase from last year’s performance was attributed to enhanced core earnings, robust residential mortgage revenues and attainment of stand alone profitability at the Company’s second full-service branch in Fortuna. Since its inception in March of 2004, the bank continues to exceed regulatory guidelines for “well-capitalized” institutions.

“Our Fortuna Branch profitability enhances what we view as a hallmark of our young franchise - strong core earnings,” remarked CEO Dalby. “Core earnings allow us to add to our already healthy levels of reserves and capital. Although we cannot predict what 2010 will hold, it has become clear that we live in a changed economic world. In times like these, we feel privileged that there is a growing recognition of the value of doing business with a locally owned and managed community bank. We remain proud of our continuing success and vigilant in upholding our mission of responsibly providing financial products and services to customers throughout Humboldt County,” he concluded.

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, CA 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, except per share data)         Period Ended % 12/31/2009     9/30/2009     Change   Balance Sheet Data (at period end) Total assets 186,302 $ 190,679 -2 % Total deposits 169,126 173,953 -3 % Total loans (net) 136,677 137,087 0 %   Summary of Operations (Current Quarter) Interest income 2,326 2,308 1 % Interest expense 501 552 -9 % Net Interest Income 1,825 1,756 4 % Non-interest income 232 277 -16 % Non-interest expense 1,232 1,300 -5 % Net Income (Loss) before provision and OREO 825 733 13 % OREO Expenses 127 0 N/A Provision for loan losses 150 370 -59 % Income before taxes 548 363 51 %     Period Ended % 12/31/2009     12/31/2008     Change   Balance Sheet Data (at period end) Total assets 186,302 161,663 15 % Total deposits 169,126 147,890 14 % Total loans (net) 136,677 129,383 6 %   Summary of Operations (Year to Date) Interest income 8,951 8,714 3 % Interest expense 2,209 2,856 -23 % Net Interest Income 6,742 5,858 15 % Non-interest income 961 775 24 % Non-interest expense 5,129 4,960 3 % Net Income (Loss) before provision and OREO 2,574 1,673 54 % OREO Expenses 589 0 N/A Provision for loan losses 1,558 1,524 2 % Income before taxes 427 149 187 %   Summary of Operations (Current Quarter) Interest income 2,326 2,215 5 % Interest expense 501 729 -31 % Net Interest Income 1,825 1,486 23 % Non-interest income 232 206 13 % Non-interest expense 1,232 1,074 15 % Net Income (Loss) before provision and OREO 825 618 34 %