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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report: October 24, 1996
REDWOOD EMPIRE BANCORP
(Exact number of Registrant as specified in its charter)
California File No. 0-19231 68-0166366
(State or other jurisdiction of (Commision File Number) (IRS Employer
Incorporated or organization) Identification No.)
111 Santa Rosa Avenue, Santa Rosa, California 95404-4905
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (707) 545-9611
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<PAGE>
Item 5. Other Events
Press release for the following (articles attached):
1. Redwood Empire Bancorp declares quarterly dividend on its
preferred stock.
2. Redwood Empire Bancorp reports third quarter results for period
ended September 30, 1996.
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.
10-24-96
Date: ___________________ REDWOOD EMPIRE BANCORP
(Registrant)
/s/ James E. Beckwith
By:__________________________
James E. Beckwith
Sr. Vice President and
Chief Financial Officer
<PAGE>
FOR: REDWOOD EMPIRE BANCORP
APPROVED BY: James Beckwith
Chief Financial Officer
(707) 573-4988
CONTACT: Morgen-Walke Associates, Inc.
Doug Sherk, Jenifer Kirtland, David Gennarelli
(415) 296-7383
Emily Dupree, Andrew Cella
(212) 850-5600
For Immediate Release
REDWOOD EMPIRE BANCORP DECLARES QUARTERLY
DIVIDEND ON PREFERRED STOCK
SANTA ROSA, Calif. (October 16, 1996) -- Redwood Empire Bancorp (AMEX: REB)
today announced that at its meeting yesterday, the Board of Directors declared a
quarterly dividend on the Company's 7.8% Noncumulative Convertible Perpetual
Preferred Stock of 19.5 cents per share. The dividend is payable on November 14,
1996 to shareholders of record on October 30, 1996.
Redwood Empire Bancorp is the holding company for two operating
subsidiaries -- National Bank of the Redwoods, a commercial bank, and Allied
Bank, F.S.B., a savings institution. The Company operates through branches and
loan production offices in various California locations, as well as Portland,
Oregon.
# # #
<PAGE>
FOR: REDWOOD EMPIRE BANCORP
APPROVED BY: James Beckwith
Chief Financial Officer
(707) 573-4988
CONTACT: Morgen-Walke Associates, Inc.
Doug Sherk, Jenifer Kirtland, David Gennarelli
(415) 296-7383
Emily Dupree, Andrew Cella
(212) 850-5600
For Immediate Release
REDWOOD EMPIRE BANCORP REPORTS THIRD QUARTER RESULTS
SANTA ROSA, Calif. (October 23, 1996) -- Redwood Empire Bancorp (AMEX: REB)
today announced financial results for the third quarter and nine months ended
September 30, 1996.
The company reported a net loss for the third quarter of $804,000, or
($0.33) per share. Included in the results was a non-recurring pre-tax charge
totalling $2,241,000 related to legislation passed by Congress in September,
1996 to bring the Federal Savings Association Insurance Fund (SAIF) to an
acceptable level. The legislation requires all savings and loan institutions,
including the Company's Allied Bank subsidiary, to make a one-time payment,
based on the level of their deposits. Excluding the one-time charge, net income
for the third quarter of 1996 would have been $496,000, or $0.14 per share. For
the third quarter of 1995, the company reported net income of $615,000, or $0.19
per share.
For the nine month period ended September 30, 1996, including the
one-time pre-tax charge, the company reported net income of $120,000, or a loss
of ($0.08) per share. Excluding the one-time charge, net income for the nine
month period ended September 30, 1996 would have been $1,420,000, or $0.39 per
share, compared with net income of $2,288,000, or $0.72 per share, in the same
period in 1995.
"While the SAIF legislation had a significant impact on our third
quarter results, this long-pending legislation is now behind us and will
positively affect our bottom-line results going forward in the form of lower
insurance premiums," said Patrick W. Kilkenny, president and chief executive
officer. "In addition, passage of the legislation removes a major uncertainty
surrounding our thrift operation."
<PAGE>
"Our net interest income continues to grow, largely reflecting strong
loan growth, especially new commercial loan and construction loan
originations," continued Mr. Kilkenny. "However, our "A" paper wholesale
mortgage banking unit has not performed to our expectations with respect to
revenues. The poor performance of this unit has masked a strong performance
from our community bank operations."
Consolidated net interest income for the company increased 22.2% in the
third quarter of 1996, due to increased loan volume and a higher net interest
margin. The net interest margin increased 95 basis points to 4.76% from 3.81% in
the third quarter of 1995. Noninterest income increased 11.5% to $3,929,000,
reflecting growth in fee income.
The loan loss provision for the third quarter totaled $545,000 compared
with $385,000 for the same quarter last year. Net chargeoffs were $594,000, or
0.70% of average portfolio loans annualized. Non-performing assets at the end of
September were 2.22% of total assets. Reserves to portfolio loans were 2.00%.
Consolidated assets were $535 million at quarter-end. Common book value
per share was $9.31. Tier 1 capital to risk-based assets was approximately 7.42%
and total capital to risk- based assets was approximately 11.91% at September
30, 1996.
Redwood Empire Bancorp is the holding company for two operating
subsidiaries: Allied Bank, F.S.B., a savings institution, and National Bank of
the Redwoods, a commercial bank. The Company operates through branches and loan
production offices in various California locations, as well as Portland, Oregon.
(Tables to follow)
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<TABLE>
REDWOOD EMPIRE BANCORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars in thousands except for earnings per share and share data)
<CAPTION>
Three Months Ended Nine Months Ended
September 30 September 30
1996 1995 1996 1995
----------------- ---------------- ------------------ -----------------
<S> <C> <C> <C> <C>
Interest income $11,463 $11,329 $34,795 $35,069
Interest expense 5,565 6,506 17,316 20,942
----------------- ---------------- ------------------ -----------------
Net interest income 5,898 4,823 17,479 14,127
Provision for loan losses 545 385 3,375 1,055
----------------- ---------------- ------------------ -----------------
Net interest income after loan loss provision 5,353 4,438 14,104 13,072
Other income 3,929 3,525 13,925 12,079
Other expense 10,681 6,957 27,839 21,231
----------------- ---------------- ------------------ -----------------
Income before taxes (1,399) 1,006 190 3,920
Income tax expense (595) 391 70 1,632
----------------- ---------------- ------------------ -----------------
Net income (804) 615 120 2,288
Preferred dividends 112 112 336 336
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Net income (loss) available for common ($916) $503 ($216) $1,952
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<S> <C> <C> <C> <C>
Earnings per common and common equivalent share:
Primary:
Net income (loss) ($.33) $.19 ($.08) $.73
Weighted average shares 2,742,000 2,700,000 2,712,000 2,669,000
Fully diluted:
Net income (loss) ($.33) $.19 ($.08) $.72
Weighted average shares 2,742,000 2,700,000 2,712,000 3,200,000
<S> <C> <C> <C> <C>
Selected Ratios
Return on Average Common Equity (14.06%) 8.22 % (1.10%) 11.04 %
Return on Average Total Equity (10.11%) 8.14 % .50 % 10.41 %
Return on Average Assets (.61%) .47 % .03 % .52 %
<CAPTION>
Selected Balance Sheet Data
(In Thousands)
September 30
1996 1995
---------------- ------------------
<S> <C> <C>
Total Loans, including Mortgage Loans Held for Sale $431,504 $411,145
Allowance for Loan Loss 6,985 5,973
Total Assets 534,507 536,249
Total Deposits 446,380 469,561
Equity Capital 31,308 30,545
Nonperforming Assets 11,846 9,993
</TABLE>
