REDWOOD FINANCIAL Business Summary

Redwood Financial Inc. (REDW) operates as the financial holding company for HomeTown Bank, a state-chartered institution providing comprehensive banking and financial services across south-central and southwestern Minnesota. The company generates revenue primarily through interest income on a diverse loan portfolio—including residential mortgages, commercial real estate, agricultural, and consumer loans—as well as transaction fees from deposit accounts, credit cards, and digital banking services. Its business is organized into three primary segments: Community Banking, which handles core deposit and lending operations; Insurance Services, conducted through Hometown Insurance, Inc.; and Agricultural Solutions, managed via Hometown Solutions, Inc., which acts as an agricultural finder business connecting growers with suppliers. Within the regional banking landscape, Redwood Financial competes directly with other community-focused entities such as Delhi Bank (DWNX), Merchants & Marine Bancorp (MNMB), and Ledyard Financial Group (LFGP), distinguishing itself through a century-long legacy of specialized agricultural lending and a high-touch service model that has earned it consistent recognition as a top workplace in the Minneapolis region. The leadership team is headed by Daryl L. Karsky, who serves as President and Chief Executive Officer, bringing decades of community banking experience to the firm which was originally founded in 1924. Key executive officers include Bob Southworth, who serves as Regional President and Chief Credit Officer, and Stephanie Seely, the company’s Treasurer, with Catherine L. Prouty serving as Corporate Secretary. Corporate governance is overseen by a Board of Directors led by Chairman Thomas W. Stotesbery and Vice Chairman Dr. John Scott Nelson, alongside directors such as Timothy J. Grabow, Dean K. Toft, and Peter Studer. The board is primarily composed of local business leaders and industry veterans who maintain significant insider ownership, reflecting a commitment to the company’s long-term stability and its role as a critical capital provider for Minnesota’s rural and suburban economies. As of July 2026, the company continues to operate as a verified issuer on the OTC markets, maintaining its focus on credit quality and community-centric growth.