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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: February 1, 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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Item 5. Other Events
Press release for the following (article attached):
Redwood Empire Bancorp releases 1995 fourth quarter earnings and full
year financial results.
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.
2-1-96
Date: ___________________ REDWOOD EMPIRE BANCORP
(Registrant)
/s/ Gale D. Bridgeman
By:__________________________
Gale D. Bridgeman
Vice President/Controller and
Principal Accounting Officer
FOR: REDWOOD EMPIRE BANCORP
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APPROVED BY: James Beckwith
Chief Financial Officer
(707) 573-4988
CONTACT: Morgen-Walke Associates, Inc.
Doug Sherk, Jenifer Kirtland, David Gennarelli
(415) 296-7383
For Immediate Release Jill Ruja, Elissa Grabowski
(212) 850-5600
REDWOOD EMPIRE BANCORP REPORTS SIGNIFICANT IMPROVEMENT IN
FOURTH QUARTER AND FULL YEAR 1995 FINANCIAL RESULTS
SANTA ROSA, CA (January 24, 1996) -- Redwood Empire Bancorp (AMEX: REB) today
announced significantly improved financial results for the fourth quarter and
full year ended December 31, 1995.
Consolidated net income for the fourth quarter was $1,025,000, or $0.32
per share on a fully-diluted basis. This compares with a net loss in the fourth
quarter of 1994 of $3,735,000, or $1.45 per share, which included a $1,594,000
pre-tax charge for the restructuring of the Company's mortgage operations and
the establishment of a lower of cost or market valuation allowance of $5,534,000
for unrealized losses associated with Allied's mortgage loans held for sale.
For the full year 1995, net income totaled $3,313,000, or $1.04 per
share. The Company reported a net loss of $3,035,000, or $1.31 per share, in
1994.
"We are very pleased with our fourth quarter and full year financial
performance, which represented a significant turnaround for the Company," said
John H. Downey, Jr., Chairman. "Our restructuring activities at Allied Bank have
resulted in a recovery of the mortgage operation, and we are optimistic that
this business will continue to operate profitably going forward."
"National Bank of the Redwoods (NBR), our commercial bank, had another
record year," Mr. Downey continued. "NBR benefitted from a 27% increase in net
interest income, in large
(more)
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part due to the acquisition of Codding Bank in late 1994. Noninterest income, an
important focus of the Bank, grew 18% during the year as we continued to expand
our niche services in merchant bankcard, SBA lending and electronic banking."
"For 1996, we will continue to emphasize our commercial banking
activities, particularly fee-generating services, where we believe we have an
expertise that provides us with a competitive advantage. We are also pursuing
strategic alternatives with respect to our mortgage banking business. We are
very optimistic about the Company's business prospects for 1996, although
financial results could be negatively affected by pending legislation requiring
a one-time payment to recapitalize the Savings Association Insurance Fund
(SAIF), the deposit insurance fund for the savings and loan industry," Mr.
Downey concluded.
Net interest income for Redwood Empire Bancorp rose by $2,364,000 in
1995 compared with 1994, reflecting the acquisition of Codding Bank and an
increase in the net interest margin. The net interest margin increased 102 basis
points to 4.31% from 3.29% in the fourth quarter last year. Noninterest income
increased by $5,690,000, primarily due to higher gains on sales of loans.
The loan loss provision for the year totaled $1,590,000 compared with
$1,095,000 last year. Net chargeoffs were $2,340,000, or 0.60% of average
portfolio loans. Nonperforming assets were 1.27% of total assets at December 31,
1995. Reserves to portfolio loans were 1.37%.
Total assets were $558 million at year-end. Common book value per share
was $9.64. Tier 1 capital to risk-based assets was approximately 7.15% and total
capital to risk-based assets was approximately 11.56%.
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.
(Table to follow)
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REDWOOD EMPIRE BANCORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars in thousands except for earnings per share and share data)
<TABLE>
<CAPTION>
Three Months Ended Year Ended
December 31 December 31 December 31 December 31
1995 1994 1995 1994
------------------- ------------------ ------------------ ------------------
<S> <C> <C> <C> <C>
Interest income $12,305 $12,353 $47,374 $38,005
Interest expense 6,729 7,239 27,671 20,666
------------------- ------------------ ------------------ ------------------
Net interest income 5,576 5,114 19,703 17,339
Provision for loan losses 535 289 1,590 1,095
------------------- ------------------ ------------------ ------------------
Net interest income after loan loss provision 5,041 4,825 18,113 16,244
Other income 4,496 (1,498) 16,575 10,885
Other expense 7,785 9,227 29,016 32,023
------------------- ------------------ ------------------ ------------------
Income (loss)before taxes 1,752 (5,900) 5,672 (4,894)
Income tax expense (benefit) 727 (2,165) 2,359 (1,859)
------------------- ------------------ ------------------ ------------------
Net income (loss) 1,025 (3,735) 3,313 (3,035)
Preferred dividends 0 112 336 448
------------------- ------------------- ------------------- -------------------
Net income (loss) available for common $1,025 ($3,847) $2,977 ($3,483)
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Earnings per common and common equivalent share:
Primary:
Net income (loss) $.38 ($1.45) $1.11 ($1.31)
Weighted average shares 2,692,000 2,659,000 2,680,000 2,649,000
Fully diluted:
Net income (loss) $.32 ($1.45) $1.04 ($1.31)
Weighted average shares 3,191,000 2,659,000 3,179,000 2,649,000
Selected Ratios
Return on Average Common Equity 16.18 % (60.99%) 12.39 % (13.22%)
Return on Average Total Equity 13.19 % (48.22%) 11.13 % (9.45%)
Return on Average Assets .72 % (2.28%) .57 % (.56%)
</TABLE>
<TABLE>
Selected Consolidated Balance Sheet Data
(In Thousands)
<CAPTION>
December 31 December 31
1995 1994
------------------ ------------------
<S> <C> <C>
Total Loans, including Mortgage Loans Held for Sale $430,844 $522,613
Allowance for Loan Loss 5,037 5,828
Total Assets 557,910 630,652
Total Deposits 458,393 469,008
Equity Capital 31,585 28,194
Nonperforming Assets 7,091 8,460
</TABLE>
