Redwood Financial (PK) (USOTC:REDW)
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REDWOOD FALLS, Minn., Oct. 21 /PRNewswire-FirstCall/ -- Redwood Financial, Inc. (OTC:REDW) (the "Company"), the parent holding company of HomeTown Bank has announced net earnings for the first fiscal quarter ended September 30, 2005. For the three months ended September 30, 2005, the Company recorded net earnings of $67,727. Basic and diluted earnings per share were $0.14 per share, and $0.13 per share, respectively. Comparatively, for the three months ended September 30, 2004, the Company recorded net earnings of $68,519. Basic and diluted earnings per share were $0.14 per share, and $0.13 per share, respectively.
At September 30, 2005, the Company reported total consolidated assets and consolidated stockholders' equity of $74.2 million and $8.6 million, respectively. HomeTown Bank is headquartered in Redwood Falls, Minnesota and operates through its main office in Redwood Falls and its branch offices located in Redwood Falls and Olivia, Minnesota. The Bank's deposits are insured up to maximum legal limits by the Federal Deposit Insurance Corporation (FDIC).
In addition, the Company further announces that it is very close to completing the 10% stock repurchase program that was announced on November 9, 2004 and intends to repurchase additional shares of the Company's common stock. Mr. Dean K. Toft, President, said the Company has been authorized by the Board of Directors to repurchase up to 47,300 shares (approximately 10% of the outstanding shares after the November 9, 2004 10% stock repurchase program is completed).
The repurchases are expected to be made in open-market transactions, subject to the availability of stock, market conditions, the trading price of the stock and the Company's financial performance. Such repurchased shares shall be recorded as treasury stock, thereby available in the future for general corporate and other purposes. The Company may terminate the repurchase program at any time.
REDWOOD FINANCIAL, INC. AND SUBSIDIARY
Consolidated Balance Sheets
(Unaudited)
Assets September 30, June 30,
2005 2005
Cash $443,299 455,947
Interest-bearing deposits with banks 2,136,616 2,736,502
Cash and cash equivalents 2,579,915 3,192,449
Securities available for sale:
Mortgage-backed and related securities 6,981,895 6,266,297
Investment securities 9,088,950 10,733,526
Total securities available for sale 16,070,845 16,999,823
Loans receivable, net 50,444,236 48,961,758
Federal Home Loan Bank stock, at cost 1,159,900 1,148,000
Accrued interest receivable 592,735 527,956
Premises and equipment, net 2,719,791 2,743,448
Deferred tax asset 180,694 174,869
Real estate owned, net 240,000 240,000
Other assets 183,960 83,197
Total Assets $74,172,076 74,071,500
Liabilities and Stockholders' Equity
Deposits 54,095,389 54,329,685
Federal Home Loan Bank advances 10,000,000 10,020,870
Accrued interest payable 560,793 489,380
Advance payments by borrowers for taxes
and insurance 142,374 61,763
Accrued expenses and other liabilities 725,964 486,975
Total Liabilities 65,524,520 65,388,673
Common stock ($.10 par value): Authorized
and issued 1,125,000 shares; outstanding
509,434 shares at September 30, 2004 and
533,749 shares at June 30, 2004 112,500 112,500
Additional paid-in capital 8,673,829 8,673,829
Retained earnings, subject to certain
restrictions 8,750,517 8,643,832
Accumulated other comprehensive income (200,371) (85,253)
Unearned Employee Stock Ownership Plan shares
Treasury stock, at cost, 615,566 shares at
September 30, 2004 and 591,251
June 30, 2004 (8,688,919) (8,662,081)
Total Stockholders' Equity 8,647,556 8,682,827
Total Liabilities and Stockholders' Equity $74,172,076 74,071,500
REDWOOD FINANCIAL, INC. AND SUBSIDIARY
Consolidated Statements of Earnings
(Unaudited)
Three months
ended September 30,
2005 2004
Interest Income:
Loans receivable $838,548 848,209
Securities available for sale:
Mortgage-backed and related securities 53,913 58,573
Investment securities 98,037 118,447
Cash equivalents and other 9,855 (145)
Total interest income 1,000,353 1,025,084
Interest Expense:
Deposits 136,290 147,132
Federal Home Loan Bank advances 290,183 226,549
Total interest expense 426,473 373,681
Net interest income 573,880 651,403
Provision for losses on loans 27,500 30,000
Net interest income after provision for
losses on loans 546,380 621,403
Noninterest income:
Gain on sale of securities available for sale 4,650
Fees and service charges 119,227 111,099
Other 3,733 4,625
Total noninterest income 127,610 115,724
Noninterest expense:
Compensation and employee benefits 357,498 366,573
Occupancy 80,329 78,019
Professional fees 24,022 16,268
Advertising 11,331 14,128
Data processing expense 10,073 9,557
Federal deposit insurance premiums 1,768 2,161
Other 87,375 143,961
Total noninterest expense 572,396 630,667
Earnings before income taxes 101,594 106,460
Income tax expense 33,867 37,941
Net earnings $67,727 68,519
Net earnings per common share - Basic $0.14 0.14
Net earnings per common share - Diluted 0.13 0.13
REDWOOD FINANCIAL, INC. AND SUBSIDIARIES
Selected Consolidated Financial Information
(Unaudited)
Three months
ended September 30,
2005 2004
Profitability Measures:
Net income 67,727 68,518
Basic earnings per share 0.14 0.14
Diluted earnings per share 0.13 0.13
Return on average assets 0.37% 0.36%
Return on average equity 3.07% 2.86%
Net interest spread 3.09% 3.44%
Net yield on interest earning assets 3.31% 3.63%
Ratio of operating expense to average
total assets 3.13% 3.31%
Period Ended Year Ended Year Ended
September 30, June 30, June 30,
Financial Position: 2005 2005 2004
Total assets 74,172,076 74,071,500 77,820,992
Total stockholders' equity 8,647,556 8,682,827 9,593,682
Average total assets 73,204,090 74,063,448 88,726,471
Average total equity 8,820,674 9,229,542 8,953,013
Loans receivable, net 50,444,236 48,961,758 50,211,030
Securities available for
sale net of mark to market 16,070,845 16,999,823 19,279,533
Unrealized gain on
securities available
for sale (332,224) (141,353) (193,316)
Non-performing assets 0 0 4,714
Non-performing assets to
total assets 0.00% 0.00% 0.01%
Allowance for loan losses 497,310 467,961 346,553
Allowance for loan losses
to total assets 0.67% 0.63% 0.45%
Allowance for loan losses
to total loans receivable 0.98% 0.95% 0.69%
Net charge-offs (recoveries) (1,848) (1,408) 777,139
Stockholders' equity to total
assets, at end of period 11.66% 11.72% 12.33%
Total shares outstanding 475,750 477,028 533,749
Book value per share
(including mark to market) 18.87 18.50 18.34
Ratio of average interest-earning
assets to average Interest-
bearing liabilities 109.07% 109.22% 109.61%
DATASOURCE: Redwood Financial, Inc.
CONTACT: Dean K. Toft of Redwood Financial, Inc., +1-507-644-4663, Fax:
+1-507-644-4664
Web site: http://www.redwoodfinancial.com/