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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
(Mark One)
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
Date of report July 2, 1999
Commission file number 0-25135
REDDING BANCORP
(Exact name of Registrant as specified in its charter)
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California 94-2823865
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)
1951 Churn Creek Road
Redding, California 96002
(Address of principal executive offices) (Zip Code)
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Registrant's telephone number, including area code: (530) 224-3333
Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act:
Common Stock, no par value per share
Indicate by check mark whether the Registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the Registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes [X] No [ ]
Indicate the number of shares outstanding of each of the issuer's class of
common stock, as of the latest practicable date. June 30, 1999 2,650,858
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Item 5. Other Events
Press release for the following (article attached):
Redding Bancorp announces Second Quarter 1999 Earnings
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
/s/ Linda J. Miles
BY: Linda J. Miles
Executive Vice President & Chief Financial Officer
REDDING BANCORP (RDDB)
COMPANY PRESS RELEASE
FOR INFORMATION CONTACT:
RUSSELL L. DUCLOS, PRESIDENT & CEO
PHONE (530) 224-7326, OR
LINDA J. MILES, CHIEF FINANCIAL OFFICER
PHONE (530) 224-7318
WWW.REDDINGBANKOFCOMMERCE.COM
FOR IMMEDIATE RELEASE:
REDDING BANCORP OF REDDING, CALIFORNIA, ANNOUNCES 1999 SECOND QUARTER EARNINGS
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REDDING, CALIFORNIA, JULY 6, 1999/ PRNEWSWIRE--Redding Bancorp (OTCBB-RDDB)
today announced net income of $2,033,000 or $0.71 per diluted share, for the six
months ended June 30, 1999. This compares with net income of $2,039,000, or
$0.70 per diluted share, for the prior year's comparable period.
Net interest income of $5,310,000 for the six months ended June 30, 1999
reflected a 5.3% increase, compared with $5,041,000 for the same period in the
prior year. The increase in net interest income for the six-month period was due
primarily to an increase in the volume of average interest-earning assets, which
increased to $205 million for the quarter ended June 30, 1999, compared to $183
million for the comparable period a year ago. The improvement reflects a volume
increase in loans and a lower cost of funding, reflecting growth in the
construction and commercial real estate portfolio's as well as increased
production at the Sacramento Real Estate Financing Group offices.
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Russell L. Duclos, President & CEO of Redding Bank of Commerce, stated "WE HAVE
MADE SUBSTANTIAL PROGRESS IN INCREASING OUR LOAN PRODUCTION WHICH TOTALED
APPROXIMATELY $157 MILLION DURING THE FIRST SIX MONTHS OF 1999, AN INCREASE OF
31% OVER THE SAME PERIOD A YEAR AGO." He added that Redding Bank of Commerce's
efficiency ratio
continues to be in the top national performers at 50.59%.
Total assets increased approximately 8.2% to $224,330,000 at June 30, 1999,
compared with $207,291,000 at June 30, 1998. Total deposits increased to
$195,896,000 at June 30, 1999, compared with $181,168,000 at June 30, 1998.
Operating expenses were $3,293,000 for the six months ended June 30, 1999
compared to $3,233,000 for the six months ended June 30, 1998.
The increase during this period was primarily due to professional fees
associated with the SEC filing of the company's registration statement (Form
10). The purpose of filing the registration and subsequent quarterly filings
with the SEC is to provide improved liquidity to shareholders.
As Mr. Duclos indicated, total loan production for the six months ended June 30,
1999 was $157,185,000, which compares favorably to the last quarter of
$147,733,000 and impressively to a year ago of $120,130,000. Increases during
the quarter were noted primarily in commercial and financial loans, commercial
real estate and construction lending. During the quarter, Redding Bank of
Commerce introduced a new receivable-financing product called Business
Manager(TM). The product allows the company's receivables to be converted to
cash enhancing the bank's ability to assist business customers to grow and
expand their businesses.
Also during the quarter, the company announced a repurchase program for up to
50,000 shares of Redding Bancorp stock during 1999. Strong earnings over the
last several years allow the Bancorp to use some of its capital to create
greater liquidity for investor shares. To date Redding Bancorp has repurchased
39,575 shares.
Redding Bank of Commerce's return on average common equity was 18.34% for the
six months ended June 30, 1999, compared with 19.12% for the same period in
1998. Return on average assets was 2.07%, for the six months ended June 30,
1999, equal to the same period 1998.
Delinquent loans as a percentage of total loans-receivable were 0.67% at June
30, 1999, compared with 0.23% at June 30, 1998. Redding Bank of Commerce's loan
loss reserves were at 2.08% to net loans at June 30, 1999, compared to 2.40% at
June 30, 1998.
Redding Bancorp, located in Redding California is a bank holding company that
owns Redding Bank of Commerce, a federally insured California banking
corporation, which opened on October 22, 1982. Redding Bank of Commerce has two
full service offices
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in Redding, California and operates two loan production offices in the
communities of Roseville, California and Chico, California. Redding Bancorp also
owns Redding Service Corp., a California corporation formed in 1993 for the
purpose of processing trust deeds.
REDDING BANCORP
SELECTED FINANCIAL DATA
(DOLLAR AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS, UNAUDITED)
SIX MONTHS ENDED
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June 30, 1999 June 30, 1998
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Operating Data:
Net Interest Income $ 5,310 $ 5,041
Provision for Loan Losses $ 40 $ 145
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Net Interest Income after
Provision for Loan Losses $ 5,270 $ 4,896
Other Operating Income:
Service Charges $ 145 $ 106
Credit Card Income, net $ 886 $ 889
Other Income $ 418 $ 227
Gain(loss) sale Investments $ 0 $ 0
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Total Operating Income $ 1,449 $ 1,225
Other Operating Expense:
Compensation & benefits $ 1,855 $ 1,648
Occupancy & Equipment $ 448 $ 415
FDIC Insurance Premiums $ 5 $ 11
DP & Professional Fees $ 365 $ 176
Other Expenses $ 753 $ 638
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Total Other Expenses $ 3,426 $ 2,888
Income from Operations $ 3,293 $ 3,233
Income Tax Provision $ 1,260 $ 1,194
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Net Income $ 2,033 $ 2,039
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Key Financial Ratio's June 30, 1999 June 30, 1998
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Net income per share- basic $ 0.77 $ 0.76
Net income per share- diluted $ 0.71 $ 0.70
Net Interest Margin 5.30% 5.58%
Return on Average Equity 18.34% 19.12%
Return on Average Assets 2.07% 2.07%
Book Value per share $ 9.51 $ 8.86
Operating Efficiency 50.59% 46.90%
Total Assets $224,330,000 $207,291,000
Loans Receivable, net 157,185,000 120,130,000
Deposits 195,896,000 181,168,000
Shareholder Equity 25,590 23,846
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