Redwood Financial (PK) (USOTC:REDW)
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Redwood Financial, Inc. Third Quarter Earnings
REDWOOD FALLS, Minn., May 4 /PRNewswire-FirstCall/ -- Redwood Financial, Inc.
(OTC:REDW) (the "Company"), the parent holding company of HomeTown Bank, has
announced net earnings for the third fiscal quarter ended March 31, 2005. For
the nine months ended March 31, 2005, the Company recorded net earnings of
$183,764. Basic and diluted earnings per share were $0.37 per share, and $0.34
per share, respectively. Comparatively, for the nine months ended March 31,
2004, the Company recorded net earnings of $76,400. Basic and diluted earnings
per share were $0.15 per share, and $0.14 per share, respectively.
At March 31, 2005, the Company reported total consolidated assets and
consolidated stockholders' equity of $72.4 million and $8.8 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).
REDWOOD FINANCIAL, INC. AND SUBSIDIARY
Consolidated Balance Sheets
(Unaudited)
Assets March 31, June 30,
2005 2004
Cash $536,106 502,934
Interest-bearing deposits with banks 1,464,155 2,825,050
Cash and cash equivalents 2,000,261 3,327,984
Securities available for sale:
Mortgage-backed and related securities 6,937,683 7,391,313
Investment securities 11,615,547 11,888,220
Total securities available for sale 18,553,230 19,279,533
Loans receivable, net 47,059,737 50,211,030
Federal Home Loan Bank stock, at cost 1,044,700 943,900
Accrued interest receivable 452,655 511,433
Premises and equipment, net 2,752,079 2,835,515
Deferred tax asset 226,483 229,000
Real estate owned, net 240,000 371,026
Other assets 81,136 111,571
Total Assets $72,410,281 77,820,992
Liabilities and Stockholders' Equity
Deposits 52,525,107 56,515,619
Federal Home Loan Bank advances 10,041,404 10,676,040
Accrued interest payable 391,052 447,575
Advance payments by borrowers for taxes
and insurance 204,904 113,747
Accrued expenses and other liabilities 414,450 474,329
Total Liabilities 63,576,917 68,227,310
Common stock ($.10 par value): Authorized
and issued 1,125,000 shares; outstanding
492,582 shares at March 31, 2005 and
533,749 shares at June 30, 2004 112,500 112,500
Additional paid-in capital 8,658,694 8,612,143
Retained earnings, subject to
certain restrictions 8,581,087 8,397,322
Accumulated other comprehensive
income (loss), net (166,542) (116,593)
Unearned Employee Stock Ownership Plan shares (16,144) (65,824)
Treasury stock, at cost, 632,418 shares at
March 31, 2005 and 591,251 June 30, 2004 (8,336,231) (7,345,866)
Total Stockholders' Equity 8,833,364 9,593,682
Total Liabilities and
Stockholders' Equity $72,410,281 77,820,992
REDWOOD FINANCIAL, INC. AND SUBSIDIARY
Consolidated Statements of Earnings
(Unaudited)
Three months Nine months
Ended March 31, ended March 31,
2005 2004 2005 2004
Interest Income:
Loans receivable $835,539 884,897 2,589,019 2,825,056
Securities available
for sale:
Mortgage-backed
and related
securities 61,879 79,581 172,260 265,231
Investment
securities 113,147 124,951 341,549 247,519
Cash equivalents
and other 9,449 3,506 16,096 19,185
Total interest
income 1,020,014 1,092,935 3,118,924 3,356,991
Interest Expense:
Deposits 235,374 254,721 690,465 810,035
Federal Home Loan
Bank advances 133,995 158,190 423,226 495,258
Total interest
expense 369,369 412,911 1,113,691 1,305,293
Net interest
income 650,645 680,024 2,005,233 2,051,698
Provision for losses
on loans 30,000 30,000 90,000 577,975
Net interest income
after provision for
losses on loans 620,645 650,024 1,915,233 1,473,723
Noninterest income:
Gains on sale of
securities
available
for sale 0 0 10,000 0
Fees and service
charges 50,278 93,485 178,536 384,952
Other 15,662 2,198 22,762 12,812
Total
noninterest
income 65,940 95,683 211,298 397,764
Noninterest expense:
Compensation and
employee benefits 380,053 386,857 1,128,379 1,132,036
Occupancy 71,995 88,287 235,531 246,501
Professional fees 22,124 18,354 59,040 54,098
Advertising 12,736 12,120 40,769 37,857
Data processing
expense 15,427 13,700 31,965 29,275
Federal deposit
insurance premiums 1,924 2,196 6,162 6,756
Other 79,210 133,603 343,508 261,790
Total
noninterest
expense 583,469 655,117 1,845,354 1,768,313
Earnings before
income taxes 103,116 90,590 281,177 103,174
Income tax expense 33,002 31,178 97,413 26,774
Net earnings $70,114 59,412 183,764 76,400
Net earnings per
common share - Basic $0.14 0.12 0.37 0.15
Net earnings per
common share - Diluted 0.13 0.11 0.34 0.14
REDWOOD FINANCIAL, INC. AND SUBSIDIARIES
Selected Consolidated Financial Information
(Unaudited)
Three Months Ended Nine Months Ended
March 31, March 31, March 31, March 31,
2005 2004 2005 2004
Profitability Measures:
Net earnings 70,114 59,412 183,764 76,400
Basic earnings
per share 0.14 0.12 0.37 0.15
Diluted earnings
per share 0.13 0.11 0.34 0.14
Return on average
assets 0.38% 0.31% 0.33% 0.13%
Return on average
equity 3.07% 2.49% 1.48% 0.60%
Net interest spread 3.36% 3.83% 3.40% 3.50%
Net yield on interest
earning assets 3.56% 3.84% 3.59% 3.65%
Ratio of operating
expense to average
total assets
(annualized) 3.17% 3.44% 1.85% 1.68%
Period Ended Year Ended Year Ended
March 31, June 30, June 30,
Financial Position: 2005 2004 2003
Total assets 72,410,281 77,820,992 81,567,799
Total stockholders' equity 8,833,364 9,593,682 9,408,959
Average total assets 74,707,699 88,726,471 88,726,471
Average total equity 9,341,239 8,953,013 9,270,686
Loans receivable, net 47,059,737 50,211,030 58,753,945
Securities available for
sale net of mark to market 18,553,230 19,279,533 14,255,767
Net unrealized gain/(loss)
on securities available
for sale (276,135) (193,316) 44,814
Non-performing assets 45,733 4,714 640,000
Non-performing assets
to total assets 0.06% 0.01% 0.78%
Allowance for loan losses 390,204 346,553 425,717
Allowance for loan losses
to total assets 0.54% 0.45% 0.52%
Allowance for loan losses
to total loans receivable 0.82% 0.69% 0.72%
Net charge-offs (recoveries) 46,349 777,139 18,889
Stockholders' equity to total
assets, at end of period 12.20% 12.33% 11.54%
Total shares outstanding 492,582 533,749 522,716
Book value per share
(including mark to market) 17.93 17.97 18.00
Ratio of average
interest-earning assets
to average interest-bearing
liabilities 109.28% 109.61% 108.34%
DATASOURCE: Redwood Financial, Inc.
CONTACT: Dean Toft of Redwood Financial, Inc., +1-507-644-4663, or fax,
+1-507-644-4664
Web site: http://www.redwoodfinancial.com/