Redwood Financial (PK) (USOTC:REDW)
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From May 2019 to May 2024
REDWOOD FALLS, Minn., April 28 /PRNewswire-FirstCall/ -- Redwood Financial, Inc. (the "Company"), the parent holding company of HomeTown Bank has announced net earnings for the third fiscal quarter ended March 31, 2006. For the nine months ended March 31, 2006, the Company recorded net earnings of $208,692. Basic and diluted earnings per share were $0.46 per share, and $0.43 per share, respectively. Comparatively, 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.
At March 31, 2006, the Company reported total consolidated assets and consolidated stockholders' equity of $74.8 million and $7.8 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,
2006 2005
Cash $ 352,343 455,947
Interest-bearing deposits with banks 2,386,028 2,736,502
Cash and cash equivalents 2,738,371 3,192,449
Securities available for sale:
Mortgage-backed and related securities 6,022,399 6,266,297
Investment securities 8,949,840 10,733,526
Total securities available for sale 14,972,239 16,999,823
Loans receivable, net 51,834,190 48,961,758
Federal Home Loan Bank stock, at cost 1,337,100 1,148,000
Accrued interest receivable 548,057 527,956
Premises and equipment, net 2,649,126 2,743,448
Deferred tax asset 321,005 174,869
Real estate owned, net 240,000 240,000
Other assets 188,528 83,197
Total Assets $ 74,828,616 74,071,500
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits 52,852,272 54,329,685
Federal Home Loan Bank advances 13,000,000 10,020,870
Accrued interest payable 601,044 489,380
Advance payments by borrowers for taxes
and insurance 178,226 61,763
Accrued expenses and other liabilities 415,002 486,975
Total Liabilities 67,046,544 65,388,673
Common stock ($.10 par value):
Authorized and issued 1,125,000 shares;
outstanding 446,988 shares at
March 31, 2006 and 477,028 shares at
June 30, 2005 112,500 112,500
Additional paid-in capital 8,705,137 8,673,829
Retained earnings, subject to certain
restrictions 8,852,524 8,643,832
Accumulated other comprehensive income
(loss), net (310,994) (85,253)
Treasury stock, at cost, 678,012 shares
at March 31, 2006 and 647,972
June 30, 2005 (9,577,095) (8,662,081)
Total Stockholders' Equity 7,782,072 8,682,827
Total Liabilities and Stockholders'
Equity $74,828,616 74,071,500
REDWOOD FINANCIAL, INC. AND SUBSIDIARY
Consolidated Statements of Earnings
(Unaudited)
Three months Nine months
Ended March 31, ended March 31,
2006 2005 2006 2005
Interest Income:
Loans receivable $912,252 835,539 2,679,493 2,589,019
Securities available
for sale:
Mortgage-backed and
related securities 65,683 61,879 188,402 172,260
Investment
securities 83,297 113,147 285,538 341,549
Cash equivalents
and other 18,309 9,449 26,569 16,096
Total interest
income 1,079,541 1,020,014 3,180,002 3,118,924
Interest Expense:
Deposits 343,671 235,374 961,924 690,465
Federal Home Loan
Bank advances 163,701 133,995 452,954 423,226
Total interest
expense 507,372 369,369 1,414,878 1,113,691
Net interest
income 572,169 650,645 1,765,124 2,005,233
Provision for losses
on loans 0 30,000 (53,500) 90,000
Net interest income
after provision for
losses on loans 572,169 620,645 1,818,624 1,915,233
Noninterest income:
Gains on sale of
securities available
for sale 0 0 4,650 10,000
Fees and service
charges 87,737 50,278 251,384 178,536
Other 487 15,662 5,779 22,762
Total noninterest
income 88,224 65,940 261,813 211,298
Noninterest expense:
Compensation and
employee benefits 366,800 380,053 1,076,607 1,128,379
Occupancy 14,664 12,736 40,330 40,769
Professional fees 88,143 71,995 253,234 235,531
Advertising 1,789 1,924 5,373 6,162
Data processing
expense 27,982 22,124 85,183 59,040
Federal deposit
insurance premiums 14,319 15,427 34,792 31,965
Other 93,509 79,210 264,741 343,508
Total noninterest
expense 607,206 583,469 1,760,260 1,845,354
Earnings before
income taxes 53,187 103,116 320,177 281,177
Income tax expense 4,202 33,002 111,485 97,413
Net earnings $48,985 70,114 208,692 183,764
Net earnings per
common share -- Basic $0.11 0.14 0.46 0.37
Net earnings per
common share -- Diluted 0.11 0.13 0.43 0.34
REDWOOD FINANCIAL, INC. AND SUBSIDIARIES
Selected Consolidated Financial Information
(Unaudited)
Three Months Ended Nine Months Ended
March 31, March 31, March 31, March 31,
2006 2005 2006 2005
Profitability Measures:
Net earnings 48,985 70,114 208,692 183,764
Basic earnings per share 0.11 0.14 0.46 0.37
Diluted earnings per share 0.11 0.13 0.43 0.34
Return on average assets 0.26% 0.38% 0.38% 0.33%
Return on average equity 2.35% 3.07% 1.96% 1.48%
Net interest spread 2.95% 3.36% 3.01% 3.40%
Net yield on interest
earning assets 3.15% 3.56% 3.23% 3.59%
Ratio of operating expense
to average total assets 3.22% 3.17% 1.79% 1.85%
(annualized)
Period Year Year
Ended Ended Ended
March 31, June 30, June 30,
Financial Position: 2006 2005 2004
Total assets 74,828,616 74,071,500 77,820,992
Total stockholders' equity 7,782,072 8,682,827 9,593,682
Average total assets 73,797,963 74,063,448 88,726,471
Average total equity 7,987,207 9,229,542 8,953,013
Loans receivable, net 51,834,190 48,961,758 50,211,030
Securities available for
sale net of mark to market 14,972,239 16,999,823 19,279,533
Net unrealized gain/(loss)
on securities available
for sale (515,642) (141,353) (193,316)
Non-performing assets 68,105 0 4,714
Non-performing assets to
total assets 0.09% 0.00% 0.01%
Allowance for loan losses 510,864 467,961 346,553
Allowance for loan losses
to total assets 0.68% 0.63% 0.45%
Allowance for loan losses
to total loans receivable 0.98% 0.95% 0.69%
Net charge-offs(recoveries) (6,386) (1,408) 777,139
Stockholders' equity to
total assets, at end of
period 10.40% 11.72% 12.33%
Total shares outstanding 446,988 477,028 533,749
Book value per share
(including mark to market) 17.41 18.50 18.34
Ratio of average interest-
earning assets to average
interest-bearing liabilities 108.16% 109.22% 109.61%
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/