-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, QaBvkXHeHaEcZjyk7WlWhVJE8lAsWbdjHkUn7wne3bIaRxUQNaS2Wm7Pn2irOuhy KM1isCD3u8rh0SG4edCX5g== 0000840007-01-000016.txt : 20010420 0000840007-01-000016.hdr.sgml : 20010420 ACCESSION NUMBER: 0000840007-01-000016 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20010418 ITEM INFORMATION: FILED AS OF DATE: 20010418 FILER: COMPANY DATA: COMPANY CONFORMED NAME: REDWOOD EMPIRE BANCORP CENTRAL INDEX KEY: 0000840007 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 680166366 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-10868 FILM NUMBER: 1605393 BUSINESS ADDRESS: STREET 1: 111 SANTA ROSA AVENUE STREET 2: PO BOX 402 CITY: SANTA ROSA STATE: CA ZIP: 95404-4905 BUSINESS PHONE: 7075734800 MAIL ADDRESS: STREET 1: 111 SANTA ROSA AVENUE CITY: SANTA ROSA STATE: CA ZIP: 95404-4905 8-K 1 0001.txt PRESS RELEASE =========================================================================== 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: April 18, 2001 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 =========================================================================== Item 5. Other Events Press release for the following (article attached): Redwood Empire Bancorp announces first quarter 2001 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. 04-18-01 Date: ___________________ REDWOOD EMPIRE BANCORP (Registrant) /s/ James E. Beckwith By: _____________________________ James E. Beckwith Executive Vice President and Chief Operating Officer FOR: REDWOOD EMPIRE BANCORP APPROVED BY: James Beckwith EVP/Chief Operating Officer (707) 522-5215 For Immediate Release REDWOOD EMPIRE BANCORP REPORTS AN INCREASE OF 26% IN NET INCOME FOR THE FIRST QUARTER 2001 SANTA ROSA, Calif. (April 18, 2001) -- Redwood Empire Bancorp (NASDAQ: REBC) today reported record income of $1,787,000, or $0.64 per diluted share, for the quarter ended March 31, 2001 as compared to $1,420,000, or $0.43 per diluted share, one year ago. Return on equity was 22.45% in the first quarter as compared with 14.86% in the same quarter a year ago. Return on assets was 1.63% in the first quarter as compared to 1.33% one year ago. "We are extremely pleased with bottom line results," noted James Beckwith, Chief Operating Officer. "Growing earning assets, reducing overhead costs, managing capital and maintaining asset quality continue to be our key objectives," said Beckwith. Total average loans amounted to $318,639,000 as of March 31, 2001 as compared to $313,405,000 one year ago, which represents a $5,234,000 or 2% increase. In the fourth quarter of 2000 the Company sold $21,205,000 in single family residential loans and securitized another $17,949,000 as part of an assets repositioning strategy. Without the impact of the single family residential loan sale and securitization, average loans grew $44,388,000 or 14%. Total deposits averaged to $395,042,000 for the quarter as compared to $375,154,000 one year ago which amounts to a $19,888,000 or 5% increase. Net interest income amounted to $5,301,000 in the first quarter, compared to $4,939,000 in the same period in 2000 which represents a 7% increase. The increase in net interest income is attributable to an increase in average earning assets of $15,800,000 from $400,724,000 for the quarter ended March 31, 2000 to $416,524,000 for the quarter ended March 31, 2001 and an improvement in net interest margin from 4.96% in first quarter of 2000 to 5.16% in the first quarter of 2001. There was no loan loss provision for the quarter ended March 31, 2001 as compared to $100,000 one year ago. Net recoveries were $22,000 or .03% of average portfolio loans for the quarter as compared to net charge-offs of $51,000 or .07% one year ago. Non-performing assets at March 31, 2001 were $1,775,000 or .4% of total assets, as compared to non-performing assets of $1,960,000, or .4% of total assets, as of December 31, 2000. Non-performing assets have declined $185,000 or 9% during the three months of 2001. The ratio of the allowance for loan losses to nonperforming assets was 434% as of March 31, 2001 as compared to 392% as of December 31, 2000. "Maintaining excellent asset quality continues to be a high priority for management and staff," said Beckwith. Noninterest income amounted to $1,365,000 for the quarter ended March 31, 2001 as compared to $1,411,000 in the same period in 2000 or a 3% decrease. The decline is attributable to a decrease in merchant card processing revenues from $897,000 in the first quarter of 2000 to $813,000 in the first quarter of 2001. In the fourth quarter of 2000, a large merchant card processing contract with an independent sales organization expired. To help offset the decline in merchant bankcard processing revenue brought about by the expiration of the contract referenced above, the Company has been building its overall merchant card processing business through direct marketing efforts and new ISO business. Excluding net revenue from merchant bankcard processing, non interest income grew $38,000 or 7% in the first quarter of 2001 when compared to the same quarter one year ago. Noninterest expense amounted to $3,650,000 for the quarter ended 2001 as compared to $3,858,000 in the same period one year ago which represents a decrease of $208,000 or 5.4%. The decline in noninterest expense is directly attributable to the Company's focus on improving efficiency. The Company's efficiency ratio for the first quarter of 2001 amounted to 54.76% as compared to 60.76% one year ago. For the three months ended March 31, 2001 the Company's community banking segment earned $1,447,000 on revenues of $5,545,000 as compared to net income of $979,000 and revenues of $5,158,000 one year ago. The segment's 48% improvement in earnings is attributable to earning asset growth, margin improvement and expense control. The Company's bankcard segment earned $340,000 in the quarter ended March 31, 2001 versus $441,000 in the first quarter of 2000. The decline in the unit's net income is due to a decline in processing revenue and an increase in salary and benefits expenses. The decline in the segment's revenue is directly attributable to the expiration of a large merchant bankcard processing contract as mentioned above. The merchant bankcard segment net income comprised 19% of the Company's consolidated net income for the first quarter of 2001. In January and February 2001 the Board of Directors authorized the repurchase of up to 10% of the Company's total shares outstanding or 285,000 shares in January 2001 and 257,000 shares in February 2001, of which 426,200 shares have been repurchased through March 31, 2001. Under the repurchase program, the Company plans to purchase shares from time to time on the open market and/or in privately negotiated transactions. The repurchase was funded in part with proceeds received from a $10,000,000 pooled trust preferred securities offering concluded on February 22, 2001. The financing, which qualifies for tier 1 capital treatment, bears an interest rate of 10.2% and is due in 30 years. Debt issuance costs amounted to approximately $300,000 and will be amortized over the life of the offering. Total assets were $450,065,000 at quarter end. Common book value per share was $10.65. The Company's Tier 1 capital to average assets ratio was 7.59% as of March 31, 2001. Redwood Empire Bancorp is the holding company for National Bank of the Redwoods, a commercial bank. The Company operates through branches in Sonoma, Mendocino and Lake Counties. 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)
REDWOOD EMPIRE BANCORP AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands except for earnings per share and share data) Three Months Ended March 31, 2001 2000 Interest income $9,053 $8,159 Interest expense 3,752 3,220 Net interest income 5,301 4,939 Provision for loan losses - 100 Net interest income after provision for loan losses 5,301 4,839 Service charge on deposit accounts 269 277 Merchant draft processing, net 813 897 Loan servicing income 77 40 Net realized (losses)/gains on sale of investment securities available for sale - (1) Other income 206 198 Total noninterest income 1,365 1,411 Salaries and employee benefits 2,232 2,150 Occupancy and equipment expense 489 501 Other 929 1,207 Total noninterest expense 3,650 3,858 Income before tax 3,016 2,392 Income tax expense 1,229 972 Net income $1,787 $1,420 Basic earnings per share: Net income available for common stock shareholders $0.66 $0.44 Weighted average shares 2,720,000 3,252,000 Diluted earnings per share: Net income available for common stock shareholders $0.64 $0.43 Weighted average shares 2,794,000 3,269,000 Selected Ratios Annualized Return on Average Total Equity 22.45% 14.86% Annualized Return on Average Assets 1.63% 1.33%
Selected Balance Sheet Data (In Thousands) March 31, March 31, 2001 2000 Total Loans, excluding mortgage loans held for sale $319,464 $321,591 Allowance for Loan Losses 7,696 7,980 Total Assets 450,065 435,130 Total Deposits 406,457 383,638 Equity Capital 26,360 39,125 Nonperforming Assets 1,775 4,882
REDWOOD EMPIRE BANCORP AND SUBSIDIARIES BUSINESS SEGMENTS Three Months Ended March 31, 2001 (in thousands) Community Banking Bankcard Total interest income $9,053 $ --- Total interest expense 3,749 3 Interest income (expense) allocation (311) 311 Net interest income 4,993 308 Provision for loan losses --- --- Service charge on deposit accounts 269 --- Merchant draft processing, net --- 813 Loan servicing income 77 --- Other income 206 --- Total noninterest income 552 813 Salaries and employee benefits 1,849 383 Occupancy and equipment expense 453 36 Other 801 128 Total noninterest expense 3,103 547 Income before income taxes 2,442 574 Provision for income taxes 995 234 Net Income $1,447 $340
Three Months Ended March 31, 2000 (in thousands) Community Banking Bankcard Total interest income $8,159 $ --- Total interest expense 3,220 --- Interest income (expense) allocation (295) 295 Net interest income 4,644 295 Provision for loan losses 100 --- Service charge on deposit accounts 277 --- Merchant draft processing, net --- 897 Loan servicing income 40 --- Net realized (losses)/gains on sale of investment securities available for sale (1) --- Other income 198 --- Total noninterest income 514 897 Salaries and employee benefits 1,869 281 Occupancy and equipment expense 461 40 Other 1,079 128 Total noninterest expense 3,409 449 Income before income taxes 1,649 743 Provision for income taxes 670 302 Net Income $979 $441
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