<PAGE>
===========================================================================
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: July 28, 1999
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
===========================================================================
<PAGE>
Item 5. Other Events
Press releases for the following (article attached):
Redwood Empire Bancorp reports second quarter 1999 financial results and
promotion announcement of James E. Beckwith to Chief Operating Officer.
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.
7/28/99
Date: ___________________ REDWOOD EMPIRE BANCORP
(Registrant)
By: /s/ James E. Beckwith
---------------------
James E. Beckwith
Executive Vice President and
Chief Operating Officer
<PAGE>
FOR: REDWOOD EMPIRE BANCORP
APPROVED BY: James E. Beckwith
Executive Vice President and
Chief Operating Officer
(707) 522-5215
For Immediate Release
REDWOOD EMPIRE BANCORP REPORTS 1999 SECOND QUARTER RESULTS
BECKWITH NAMED CHIEF OPERATING OFFICER
SANTA ROSA, Calif. (July 28, 1999) --Redwood Empire Bancorp (Nasdaq: REBC) today
reported second quarter 1999 net income of $1,218,000, or $0.35 per diluted
share. This compares with net income of $1,211,000, or $0.35 per diluted share
for the second quarter one year ago. Return on equity was 12.21% in the second
quarter, compared with 13.84% one year ago. For the six months ended June 30,
1999, net income, after extraordinary charge of $276,000 or $0.08 per diluted
share, was $2,236,000 or $0.64 per diluted share. This compares with net income
of $2,318,000 or $0.67 per diluted share for the first six months of 1998.
"While our Core Bank and Merchant Bankcard strategic business units
exceeded expectations, poor performance of the Company's Mortgage Banking and
Mortgage Brokerage units compromised the Company's nine quarters of earnings
growth momentum," noted Tom Whitaker, Chairman of Redwood Empire Bancorp. "The
Board of Directors of Redwood Empire Bancorp is currently reviewing strategic
options of its Mortgage Banking and Mortgage Brokerage units in order to improve
overall Company performance," Whitaker added.
James E. Beckwith, 41, currently the Company's chief financial officer,
has been promoted to chief operating officer and will be responsible for the
finance, credit administration, marketing, human resources, and operational
functions of the Company. "We are pleased to announce this promotion. Mr.
Beckwith will focus on improving the operational efficiency of the Company and
growing earning assets," said Whitaker.
Net interest income was $5,089,000 in the second quarter; compared to
$4,614,000 for the same period in 1998 which represents a 10.3% increase. The
increase in net interest income is attributable to both an increase in earning
assets and an improvement in the net interest margin. Earnings assets increased
$18.5 million while the net interest margin increased from 4.90% to 5.15%. The
loan loss provision was $200,000 for the quarter, versus $510,000 in the same
period last year. 1999 second quarter net charge-offs were $440,000, or .64% of
average portfolio loans. Non-performing assets at June 30, 1999 were $9,190,000
or 2.12% of total assets, as compared to non-performing assets of $8,911,000 or
2.12% of total assets, as of December 31, 1998 and $9,720,000 or 2.24% of total
assets as of March 31, 1999.
<PAGE>
"We have made an ongoing commitment to reduce our non-performing assets and
view resolution of this issue as integral to our long term success," continued
Whitaker. As of June 30, 1999, loans past due 90 days and non-accrual loans
amounted to $5,608,000, restructured loans totaled $1,029,000 and other real
estate owned and other assets owned equaled $2,553,000 of which $1,158,000
was guaranteed by the S.B.A. Subsequent to June 30, 1999 three loans which were
past due 90 days or non-accrual totaling $1,795,000, paid off. In addition, one
OREO property carrried at $264,000 was sold.
Second quarter non-interest expenses of $5,768,000 decreased $540,000,
or 9% from the same quarter one-year ago. Non-interest income declined
$1,334,000 or 32% from the same quarter one year ago. Mortgage brokerage and
mortgage income declined $1,521,000 from the same quarter in the prior
year while other forms of non-interest income increased $187,000.
Total assets were $432 million at quarter-end. Common book value per
share was $11.81. The Company's Tier 1 capital to average assets ratio was
9.10% as of June 30, 1999.
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)
<PAGE>
<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 Six Months Ended
June 30 June 30 June 30 June 30
1999 1998 1999 1998
<S> <C> <C> <C> <C>
Interest income $7,998 $8,223 $15,741 $16,529
Interest expense 2,909 3,609 5,825 7,341
Net interest income 5,089 4,614 9,916 9,188
Provision for loan losses 200 510 500 1,020
Net interest income after loan loss 4,889 4,104 9,416 8,168
provision
Other income 2,791 4,125 6,177 7,452
Other expense 5,768 6,308 11,578 11,957
Income before taxes 1,912 1,921 4,015 3,663
Income tax expense 694 710 1,503 1,345
Income before extraordinary item 1,218 1,211 2,512 2,318
Extraordinary item, net of tax 276
- - -
Net income 2,236 2,318
1,218 1,211
Preferred dividends 112
- -
Net income available for common $1,218 $1,211 $2,236 $2,206
Income per share before extraordinary item:
Basic $.36 $.39 $.74 $.74
Weighted average shares-basic 3,395,000 3,141,000 3,383,000 2,967,000
Income per share before extraordinary item:
Diluted $.35 $.35 $.72 $.67
Weighted average shares-diluted 3,509,000 3,463,000 3,485,000 3,454,000
Basic earnings per share:
Net income $.36 $.39 $.66 $.74
Weighted average shares 3,395,000 3,141,000 3,383,000 2,967,000
Diluted earnings per share:
Net income $.35 $.35 $.64 $.67
Weighted average shares 3,509,000 3,463,000 3,485,000 3,454,000
Selected Ratios
Return on Average Total Equity 12.21 % 13.84 % 12.72 % 13.49 %
Return on Average Assets 1.12 % 1.14 % 1.17 % 1.09 %
</TABLE>
<TABLE>
Selected Balance Sheet Data
(In Thousands)
<CAPTION>
June 30 June 30
1999 1998
<S> <C> <C>
Total Loans, including Mortgage Loans
Held for Sale $324,862 $290,669
Allowance for Loan Loss 8,001 7,930
Total Assets 431,866 431,214
Total Deposits 366,562 373,569
Equity Capital 40,266 35,804
</TABLE>
