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Redwood Capital Bank

Eureka, CA · Cert 57610 · Redwood Capital Bcorp

State charter, non-member · FDIC · 4 branches

Q2 2026

$566.0MAssets
$402.3MLoans
$504.9MDeposits
$56.2MEquity
Loan mix
95%RE $364.0M5%C&I $18.7M0%Consumer $0.6MQ2 2025Q2 2026
Deposit mix
73%Interest-bearing $366.5M27%Noninterest $138.3MQ2 2025Q2 2026

NIM

4.38%Q2 ’244.57%Q2 ’254.78%Q2 ’26+2%+8%

Non-interest income vs. expense

2.52%Q2 ’242.77%Q2 ’252.85%Q2 ’26+20%+1%

Executive Summary

  • Earnings: ROA of 1.16%, up 13 bps year over year; NIM at 3.96%.
  • Asset quality: problem loans at 0.13% of loans (-27 bps YoY), with net charge-offs at 0.00%.
  • Capital: tier 1 leverage ratio of 10.96%, down 78 bps from a year ago.
  • Funding: loans stand at 79.69% of deposits as of Q2 2026.

Financial Results

Return on Assets (YTD, annualized)

1.16%+13 bps YoY

Net Interest Margin (YTD, annualized)

3.96%+30 bps YoY

Efficiency Ratio (YTD, annualized)

62.77%-363 bps YoY

Tier 1 Leverage Ratio

10.96%-78 bps YoY

Year to date, annualized, through each quarter.

MetricQ2 2025Q3 2025Q4 2025Q1 2026Q2 2026YoY ΔTrend
Earnings
Return on Assets1.04%1.11%1.13%1.14%1.16%+13 bps
Return on Equity9.82%10.71%10.88%11.17%11.54%+173 bps
Net Interest Margin3.65%3.62%3.73%4.06%3.96%+30 bps
Efficiency Ratio66.39%63.88%64.34%63.88%62.77%-363 bps
Non-Interest Burden2.25%2.13%2.22%2.39%2.27%+2 bps
Growth
Asset Growth (YoY)5.54%1.45%-0.02%3.97%2.38%-316 bps
Loan Growth (YoY)-0.23%1.69%-0.26%0.10%5.25%+548 bps
Deposit Growth (YoY)6.49%3.30%0.09%4.94%2.83%-366 bps
Asset Quality
Nonperforming Loans / Loans0.40%0.40%0.32%0.15%0.13%-27 bps
Net Charge-Offs / Loans0.01%0.01%0.02%0.00%0.00%-1 bps
Allowance / Loans1.63%1.61%1.58%1.61%1.56%-6 bps
Allowance Coverage of NPLs4.1x4.1x5.0x10.5x12.3x+8.2x
Capital
Tier 1 Leverage Ratio11.74%10.57%10.86%10.93%10.96%-78 bps
Total Risk-Based Capital16.61%15.53%15.96%15.89%15.66%-95 bps
Equity / Assets10.39%9.85%10.27%10.08%9.92%-47 bps
Liquidity & Funding
Loans / Deposits77.86%79.62%80.82%79.20%79.69%+183 bps
Liquid Assets / Assets2.28%2.64%2.25%2.32%2.49%+22 bps
CRE / Total Capitaln/a517%509%501%n/an/a