EUREKA, Calif.--(BUSINESS WIRE)--
On May 30, 2007, REDWOOD CAPITAL BANK (OTCBB:RDWO) reported that
it is now a wholly owned subsidiary of a newly formed holding company,
Redwood Capital Bancorp (OTCBB:RWCB). Shareholders approved the
reorganization on April 6, 2007 and final regulatory approval was
received on April 13, 2007.
"We are happy to announce the formation of the holding company,
which can provide additional flexibility when contemplating
investments and our future expansion," said President and CEO John E.
Dalby. "In addition, the holding company provides us with access to
the trust preferred securities market and additional debt instruments.
These instruments are a less costly type of capital traditionally used
to fund organic growth and acquisitions and are not dilutive to our
existing shareholders."
Shareholders of Redwood Capital Bank are now shareholders of
Redwood Capital Bancorp with the same proportional ownership. As of
Tuesday, May 29, 2007, the new Redwood Capital Bancorp shares
(RWCB.OB) can be traded on the NASD OTC Bulletin Board.
Redwood Capital Bancorp is the only locally owned and operated
bank holding company headquartered in Eureka, California. For more
information regarding Redwood Capital Bancorp or Redwood Capital Bank,
please visit our website at www.rdwo.com, contact Fred J. 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.
Source: Redwood Capital Bank
Contact: Redwood Capital Bank
Fred J. Moore, CFO, 707-444-9840