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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: August 30, 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
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Item 5. Other Events
Press releases for the following (article attached):
Redwood Empire Bancorp announces divestiture of mortgage brokerage and
mortgage banking units.
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.
8/30/99
Date: ___________________ REDWOOD EMPIRE BANCORP
(Registrant)
By: /s/ James E. Beckwith
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James E. Beckwith
Executive Vice President and
Chief Operating Officer
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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 ANNOUNCES DIVESTITURE OF
MORTAGE BROKERAGE AND MORTGAGE BANKING UNITS
SANTA ROSA, Calif. (August 30, 1999) -- Redwood Empire Bancorp (Nasdaq: REBC)
today reported that it has entered into an agreement in principal to divest
itself of its mortgage brokerage and mortgage banking units, Valley Financial
and Allied Diversified Credit, effective September 10, 1999. The divestiture
will take the form of an asset sale and employee transfer to Valley Financial
Funding, Inc., whose shareholders include senior management of Valley Financial
and Allied Diversified Credit. Valley Financial Funding, Inc. will affiliate
with Prism Financial Corporation, one of the nation's largest retail mortgage
originators. The Company intends to utilize Valley Financial Funding Inc. to
provide mortgage lending services to its customers. "We believe that our
shareholders are well served by this action," said Tom Whitaker, Chairman of
Redwood Empire Bancorp.
As a result of the divestiture, Redwood Empire Bancorp will lose ninety-five
employees of which sixty-three will be transferred to Valley Financial Funding,
Inc. while thirty-two will be terminated by the Company. The Company will take a
restructuring charge of approximately $300,000 in the third quarter, which is
primarily comprised of termination benefits. Assets to be sold by the Bank
include certain assets held within the mortgage banking operation. The Company
will sell these assets at book value.
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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