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UNITED STATES
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 28, 1998
REDWOOD EMPIRE BANCORP
(Exact number of Registrant as specified in its charter)
California File No. 0-19231 68-0166366
(State or other jurisdiction of (Commission 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) 573-4800
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Item 5. Other Events
Press releases for the following (article attached):
Redwood Empire Bancorp reports third quarter 1998 financial results.
Redwood Empire Bancorp announces share repurchase program.
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.
10/28/98
Date: ___________________ REDWOOD EMPIRE BANCORP
(Registrant)
/s/ James E. Beckwith
By:
James E. Beckwith
Executive Vice President and
Chief Financial Officer
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FOR: REDWOOD EMPIRE BANCORP
APPROVED BY: James Beckwith
Chief Financial Officer
(707) 522-5215
CONTACT: Morgen-Walke Associates, Inc.
John Swenson, Bruce Schoenfeld
(415) 296-7383
For Immediate Release Patricia Walsh, Mark Owen
(212) 850-5600
REDWOOD EMPIRE BANCORP REPORTS IMPROVED
THIRD QUARTER 1998 FINANCIAL RESULTS
SANTA ROSA, Calif. (October 27, 1998) -- Redwood Empire Bancorp (AMEX: REB)
today reported net income of $1,335,000, or $0.38 per diluted share, for its
third quarter ended September 30, 1998. This compares with net income of
$925,000, or $0.27 per diluted share for the third quarter a year ago and
represents a 44.3% increase in net income. For the second quarter 1998, net
income was $1,211,000, or $0.35 per diluted per share. Return on equity was
14.58% in the third quarter, compared with 11.67% in the same quarter a year ago
and 13.84% for the second quarter of 1998.
For the nine months ended September 30, 1998, net income was
$3,653,000, or $1.05 per fully diluted share. This compares with net income of
$2,389,000 or $0.70 per fully diluted share, for the first nine months of 1997
and represents a 52.9% increase in net income.
"We are very pleased to report another quarter of improved financial
performance for the Company," said Tom Whitaker, Chairman of Redwood Empire
Bancorp. "We remain on track for achieving the goals we set at the beginning of
the year for improving asset quality, enhancing earning asset generation,
bolstering fee income and improving operational efficiency."
Consolidated net interest income amounted to $4,918,000 compared to
$5,139,000 in the same period in 1997 and $4,614,000 in the second quarter of
1998. Net interest margin for the quarter was 5.13% as compared to 5.08% in the
third quarter of 1997 and 4.90% in the second quarter of 1998. Average earning
assets amounted to $383,168,000 during the third quarter of 1998 as compared to
$404,816,000 one year ago and $376,513,000 for the second quarter of 1998.
( - more - )
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The Company also announced that its Board of Directors has approved a
common stock repurchase program under which the Company may purchase up to 5% of
its outstanding shares.
The loan loss provision was $510,000 for the quarter, versus $465,000
in the same period last year. Net chargeoffs were $219,000, or .30% of total
loans on an annualized basis for the quarter as compared to $24,000 or .03% in
the same quarter one year ago. Nonperforming assets at September 30, 1998 were
$10,412,000 or 2.47% of total assets, as compared to non-performing assets of
$16,621,000, or 3.71% of total assets, as of December 31, 1997, and $13,117,000
or 3.04% of total assets as of June 30, 1998. Non-performing assets have
declined $6,209,000 or 37.3% during the first nine months of 1998.
"We again achieved significant progress in the reduction of
non-performing assets," said Whitaker. "This continues to be the highest
priority for management and staff for the rest of this year."
Fee income amounted to $4,024,000in the quarter ended September 30,
1998 as compared to $2,092,000 in the same period in 1997 or a 92.4% increase.
Fee income amounted to $4,125,000 in the second quarter of 1998. The increase is
attributable to the strong performance of the Company's mortgage loan brokerage
and merchant credit card units. Fee income represented 45% of third quarter
revenue and 44.8% of revenue on a year-to-date basis.
"Diversification of earnings through generation of fee income has been
a cornerstone of the Company's long-term strategy," noted Whitaker.
Non interest expense amounted to $6,333,000 in the third quarter of
1998 as compared to $5,240,000 in the same period one year ago. Non interest
expense totaled $6,308,000 in the second quarter of 1998.
Total assets were $420,973,000 at quarter-end. Common book value per
share was $11.15. The Company's Tier 1 capital to average assets ratio was
8.47% as of September 30, 1998.
Redwood Empire Bancorp is the holding company for National Bank of the
Redwoods, a commercial bank. The Company operates through branches and loan
production offices in various northern California locations.
The statements contained in this release, which are not historical
facts, are forward-looking statements that are subject to risks and
uncertainties. Actual results may differ materially from those set forth in or
implied by forward-looking statements.
These risks are described in the Company's Securities and Exchange Commission
filings.
(Tables 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 Nine Months Ended
September 30 September 30 September 30 September 30
1998 1997 1998 1997
--------------- --------------- --------------- --------------
<S> <C> <C> <C> <C>
Interest income $9,199 $24,975 $28,425
8,446
Interest expense 3,528 4,060 10,869 12,866
--------------- --------------- --------------- --------------
Net interest income 4,918 5,139 14,106 15,559
Provision for loan losses 510 465 1,530 1,635
--------------- --------------- --------------- --------------
Net interest income after loan loss 4,408 4,674 12,576 13,924
provision
Other income 4,024 2,092 11,476 7,436
Other expense 6,333 5,240 18,290 17,307
--------------- --------------- --------------- --------------
Income before taxes 2,099 1,526 5,762 4,053
Income tax expense 764 601 2,109 1,664
--------------- --------------- --------------- --------------
Net income 1,335 925 3,653 2,389
Preferred dividends 112 112 336
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--------------- --------------- --------------- --------------
Net income available for common $1,335 $813 $3,541 $2,053
=============== =============== =============== ==============
Basic earnings per share:
Net income $.40 $.29 $1.14 $.74
Weighted average shares 3,369,000 2,784,000 3,101,000 2,772,000
Diluted:
Net income $.38 $.27 $1.05 $.70
Weighted average shares 3,486,000 3,390,000 3,465,000 3,424,000
Selected Ratios
Return on Average Total Equity 14.58 % 11.67 % 13.86 % 10.35 %
Return on Average Assets 1.26 % .84 % 1.15 % .69 %
</TABLE>
<TABLE>
<CAPTION>
Selected Balance Sheet Data
(In Thousands)
September 30 September 30
1998 1997
--------------- ---------------
<S> <C> <C>
Total Loans, including Mortgage Loans Held for Sale $289,213 $314,391
Allowance for Loan Loss 8,221 7,989
Total Assets 420,973 448,881
Total Deposits 358,013 392,670
Equity Capital 37,748 32,235
Nonperforming Assets 10,412 16,878
</TABLE>
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FOR: REDWOOD EMPIRE BANCORP
APPROVED BY: James Beckwith
Chief Financial Officer
(707) 522-5215
CONTACT: Morgen-Walke Associates, Inc.
John Swenson, Bruce Schoenfeld
(415) 296-7383
For Immediate Release Patricia Walsh, Mark Owen
(212) 850-5600
REDWOOD EMPIRE BANCORP ANNOUNCES
SHARE REPURCHASE PROGRAM
SANTA ROSA, CALIF. (Oct. 27, 1998) - Redwood Empire Bancorp (AMEX: REB) today
announced that its board of directors has authorized the repurchase of up to 5%
of the Company's outstanding shares of Common Stock. Under the repurchase
program, the Company plans to purchase shares from time to time on the open
market or through privately negotiated transactions.
"We believe that shares of Redwood Empire currently represent a
compelling value, and that this repurchase program provides the opportunity to
enhance returns on capital and increased earnings per share over the long-term,"
said Tom Whitaker, Chairman of Redwood Empire Bancorp.
Redwood Empire Bancorp is the holding company for National Bank of the
Redwoods, a commercial bank. The Company operates through branches and loan
production offices in various northern California locations.
The statements contained in this release, which are not historical
facts, are forward-looking statements that are subject to risks and
uncertainties. Actual results may differ materially from those set forth in or
implied by forward-looking statements.
These risks are described in the Company's Securities and Exchange Commission
filings.
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