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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: July 25, 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 (articles attached):
1. Redwood Empire Bancorp reports second quarter results for period
ended June 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.
7-25-96
Date: ___________________ REDWOOD EMPIRE BANCORP
(Registrant)
/s/ Gale D. Bridgeman
By:__________________________
Gale D. Bridgeman
Vice President/Controller and
Principal Accounting Officer
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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
For Immediate Release Emily Dupree, Elissa Grabowski
(212) 850-5600
REDWOOD EMPIRE BANCORP REPORTS SECOND QUARTER RESULTS
SANTA ROSA, CA (July 24, 1996) -- Redwood Empire Bancorp (AMEX: REB) today
announced financial results for the second quarter and six months ended June
30, 1996.
The company reported net income for the second quarter of $38,000, and
due to the effect of the dividend on the company's preferred stock, lost $0.03
per share common. Included in the results was a non-recurring charge totalling
$1.2 million pre-tax related to the company's financial obligation following
the bankruptcy of one of its merchant credit card customers. In addition, the
company took an unusually high loan loss provision to reflect potential credit
problems. For the second quarter of 1995, the company reported net income of
$762,000, or $0.24 per share.
For the six month period ended June 30, 1996, the company reported net
income of $924,000, or $0.26 per share, compared with net income of $1,673,000,
or $0.52 per share, in the same period in 1995.
"Our second quarter results reflected two non-recurring matters at
National Bank of the Redwoods (NBR), our commercial banking subsidiary," said
Patrick W. Kilkenny, president and chief executive officer. "One of our
largest merchant credit card customers has declared bankruptcy, and NBR is
obligated to ensure payment to its customers. In the quarter, we set aside a
reserve for the total exposure of $1.2 million. Also during the quarter, we
took an unusually large loan loss provision of $1,315,000. We have taken a
realistic approach towards these events."
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-2-
"Despite the special provisions, our go-forward run-rate appears to be
strong, as evidenced by the growth in net interest income, which totaled
$6,082,000 for the recent quarter compared with $4,692,000 a year ago," Mr.
Kilkenny continued. "The financial performance at NBR masked the progress we
continued to make at Allied Bank. Mortgage originations increased
substantially to $462 million in the recent second quarter from $167 million
last year."
Consolidated net interest income for the second quarter grew 29.6%,
due to increased loan volume, primarily mortgages, and a higher net interest
margin. The net interest margin increased 131 basis points to 4.83% from 3.52%
in the second quarter of 1995. Noninterest income increased 7%, reflecting
growth in fee income and gains on the sale of mortgages.
The loan loss provision for the quarter totaled $1,315,000 compared
with $370,000 for the same quarter last year. Net chargeoffs were $661,000, or
0.75% of average portfolio loans annualized. Non-performing assets at the end
of June were 1.96% of total assets. Reserves to portfolio loans were 2.08%.
Consolidated assets were $521 million at quarter-end. Common book
value per share was $9.60. Tier 1 capital to risk-based assets was
approximately 7.82% and total capital to risk- based assets was approximately
12.39% at June 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)
Three Months Ended Six Months Ended
<CAPTION>
June 30 June 30 June 30 June 30
1996 1995 1996 1995
------------------- ------------------ ------------------ ------------------
<S> <C> <C> <C> <C>
Interest income $ 11,839 $ 11,666 $ 23,332 $ 23,740
Interest expense 5,757 6,974 11,751 14,436
------------------- ------------------ ------------------ ------------------
Net interest income 6,082 4,692 11,581 9,304
Provision for loan losses 1,315 370 2,830 670
------------------- ------------------ ------------------ ------------------
Net interest income after loan loss provision 4,767 4,322 8,751 8,634
Other income 4,411 4,121 9,996 8,554
Other expense 9,067 7,077 17,158 14,274
------------------- ------------------ ------------------ ------------------
Income before taxes 111 1,366 1,589 2,914
Income tax expense 73 604 665 1,241
------------------- ------------------ ------------------ ------------------
Net income 38 762 924 1,673
Preferred dividends 112 112 224 224
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Net income (loss) available for common ($ 74) $ 650 $ 700 $ 1,449
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<S> <C> <C> <C> <C>
Earnings per common and common equivalent share:
Primary:
Net income (loss) ($.03) $.24 $.26 $.54
Weighted average shares 2,713,000 2,676,000 2,731,000 2,666,000
Fully diluted:
Net income (loss) ($.03) $.24 $.26 $.52
Weighted average shares 2,713,000 3,192,000 2,731,000 3,190,000
<S> <C> <C> <C> <C>
Selected Ratios
Return on Average Common Equity (1.11%) 10.96 % 5.30 % 12.52 %
Return on Average Total Equity .47 % 10.34 % 5.74 % 11.58 %
Return on Average Assets .03 % .52 % .34 % .56 %
Selected Balance Sheet Data
(In Thousands)
June 30 June 30
1996 1995
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<S> <C> <C>
Total Loans, including Mortgage Loans Held for Sale $ 417,903 $ 413,458
Allowance for Loan Loss 7,034 6,019
Total Assets 520,993 511,580
Total Deposits 443,020 455,383
Equity Capital 32,006 29,876
Nonperforming Assets 10,190 8,947
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