RWCB Redwood Capital Bancorp (QX)

On February 1, 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 and twelve month periods ended December 31, 2011. For the second straight year, the company reported record earnings and continued growth despite the continued challenges within the banking environment.

President and CEO John Dalby stated, "We are extremely proud of the company's record financial performance and we plan on reinvesting our profits where it matters most – within our communities in the form of loans to the individuals and small businesses of Humboldt County. This is our sixth consecutive year of annual profitability which substantiates our consistent ability to gain valuable market share. As many banks continue to struggle, our results bolster our strategy of building a safe, strong and profitable financial institution that Humboldt County can bank on and with for many years to come."

Total assets as of December 31, 2011 were $241.7 million, a slight increase of 1% over the September 30, 2011 figure and a sharp increase of 13% over the December 31, 2010 reported figures. Total deposits stood at $216.8 million as of December 31, 2011, 1% greater than the September 30, 2011 figures and an increase of 12% over the December 31, 2010 numbers. The company reported modest loan growth of 2% for the year ended December 31, 2011. 

Consolidated net interest income for the three and twelve months ended December 31, 2011 totaled $2,079,000 and $8,017,000, a robust increase of 5% and 7% for the three and twelve months ended September 30, 2011 and December 31, 2010, respectively. The company also reported an impressive consolidated net income figures for the three and twelve months ended December 31, 2011 of $691,000 and $1,708,000, a stout increase of 131% and 70% from the three and twelve months ended September 30, 2011 and December 31, 2010, respectively. Lastly, book value per common share stood at $7.80 as of December 31, 2011, a 5% increase over the previous quarter and a healthy 14% increase over the December 31, 2010 amount. The increases over last year's performance figures was again attributed to enhanced core earnings, strong operational efficiencies, robust residential mortgage revenues, and reduced credit related costs. 

"Throughout the most turbulent economic times since the Great Depression, we have not wavered from our mission to be the acknowledged leader in Humboldt County community banking.  Our Board of Directors and our entire staff remains committed to our region's economic stability throughout this challenging period and we look forward to playing an increasing role in our county's future economic growth. With ample capital levels, strong asset quality and a high performing balance sheet we are uniquely positioned to continue our pattern of solid growth as well as strengthen our reputation as a local organization that is committed to serving its shareholders, clients and communities. This past year has been our strongest year yet. The entire Redwood Capital Bank team is excited about the opportunities that lie before us in 2012 and beyond," Dalby 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.  

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 Company 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		%
	12/31/2011	9/30/2011	Change
Balance Sheet Data (at period end)
Total assets	241,666	$ 240,117	1%
Total deposits	216,779	215,596	1%
Total loans (net)	147,411	146,745	0%
Common equity	13,760	13,051	5%
Common shares outstanding	1,761,887	1,761,887	0%
Summary of Operations (Current Quarter)
Interest income	2,495	2,425	3%
Interest expense	416	436	-5%
Net Interest Income	2,079	1,989	5%
Non-interest income	220	193	14%
Non-interest expense	1,654	1,479	12%
Net Income before provision	645	703	-8%
Provision for loan losses	0	150	-100%
Income before taxes	645	553	17%
Income taxes/(credit)	(46)	253	N/A
Net Income	691	300	131%
Earnings per common share (fully diluted)	$ 0.39	$ 0.17	131%
Book value per common share	$ 7.80	$ 7.41	5%
	Period Ended		%
	12/31/2011	12/31/2010	Change
Balance Sheet Data (at period end)
Total assets	241,666	213,672	13%
Total deposits	216,779	193,449	12%
Total loans (net)	147,411	143,967	2%
Common equity	13,760	11,901
Common shares outstanding	1,761,887	1,746,799
Summary of Operations (Year to Date)
Interest income	9,783	9,283	5%
Interest expense	1,766	1,815	-3%
Net Interest Income	8,017	7,468	7%
Non-interest income	840	978	-14%
Non-interest expense	6,274	5,654	11%
Net Income before provision	2,583	2,792	-7%
Provision for loan losses	300	2,050	-85%
Income before taxes	2,283	742	208%
Income taxes/(credit)	574	(264)	N/A
Net Income	1,708	1,006	70%
Earnings per common share (fully diluted)	$ 0.97	$ 0.58	68%
Book value per common share	$ 7.80	$ 6.83	14%

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