Redwood Capital Bancorp (OTCQX: RWCB), the only locally owned and operated community bank holding company in Humboldt County, California, has announced its first stock repurchase program. The board of directors has authorized the company to buy back up to $1 million of its common shares between July 1 and September 30, 2025, unless the board decides to end or extend it earlier. The company says the initiative is designed to enhance shareholder value and reflects its confidence in the business’s financial health and future prospects.
The buyback program allows Redwood Capital Bancorp to repurchase shares in both open market and private transactions. The company has made it clear that the program is not a binding commitment to purchase a specific number of shares. Instead, the actual timing and amount of repurchases will depend on several factors, including market conditions, share price, alternative investment opportunities, and the company’s own liquidity needs. The board also retains the right to suspend, terminate, or modify the program at any time.
Funding for the repurchases will primarily come from Redwood Capital Bancorp’s existing internal funds. If needed, the company may also use dividends received from its wholly owned subsidiary, Redwood Capital Bank, to support the program. All transactions will comply with federal and state securities laws, including adherence to any trading plans established under Rule 10b5-1 of the Securities and Exchange Commission.
John E. Dalby, President and CEO of Redwood Capital Bancorp, said the decision to launch the buyback is rooted in the company’s strong capital position and its commitment to providing liquidity for shareholders. Dalby also emphasized that the move reflects the board’s belief in the long-term value of the company.
This marks the first time Redwood Capital Bancorp has initiated a stock repurchase program in its history. The company, founded in 2004 and headquartered in Eureka, California, operates through its subsidiary Redwood Capital Bank, which serves customers through branches and ATMs in Eureka, Fortuna, and Arcata. Redwood Capital Bancorp offers a range of banking services, including checking, savings, money market accounts, and various types of loans to individuals and businesses in the region.
Redwood Capital Bancorp is a relatively small player in the banking sector, with a focus on serving the Humboldt County community. The company has a track record of maintaining a strong balance sheet and paying regular dividends to shareholders. Its decision to allocate up to $1 million to buy back shares is a significant move for a community bank of its size, representing a meaningful effort to return capital to shareholders and potentially support the stock price.
Redwood Capital Bancorp has stated that all repurchases will be conducted in compliance with applicable securities laws and regulations. This includes the option to implement a formal trading plan under SEC Rule 10b5-1, which allows companies to buy back shares according to a predetermined schedule, even during periods when insiders might otherwise be restricted from trading.
