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REDWOOD EMPIRE BANCORP REPORTS INCREASED FIRST QUARTER EARNINGS

 SANTA ROSA, Calif., April 26 /PRNewswire/ -- Redwood Empire Bancorp (AMEX: REB) today announced increased earnings for the first quarter ended March 31, 1993.
 Net income was $805,000, an increase of 76 percent over net income for the first quarter of 1992 of $457,000. Fully-diluted earnings per share for the recent quarter were 28 cents, compared with 24 cents for the first quarter of 1992. The growth in earnings per share was impacted in the first quarter by an increase in weighted shares outstanding due to the issuance of 575,000 additional shares of common stock in April 1992, and the dividend payment on the preferred stock issued in February 1993.
 Return on assets for the first quarter was 1 percent and the return on common equity was 12.7 percent.
 "We were pleased with the continued strong earnings performance of Redwood Empire Bancorp," said John H. Downey, Jr., chairman. "Growth in the mortgage operations, along with a substantial improvement in fee income from our commercial banking operations were the primary factors."
 Originations of mortgages for sale were $234 million in the first quarter, reflecting the seasonal fluctuations at the beginning of the year, followed by the company's record originations in March of $128 million. Net interest income rose 32 percent compared with the first quarter of 1992, primarily due to the increase in mortgage loans. The net interest margin was 4.04 percent in the recent quarter compared with 4.31 percent in the first quarter of last year. The decline in the net interest margin was primarily attributable to the repricing of the adjustable rate mortgage portfolio and the increase in interest-bearing liabilities used to fund the mortgage banking originations.
 Noninterest income grew 48 percent, reflecting increased gains on sales of mortgage and SBA loans and higher fee income. Commercial banking fee income, including SBA loan sales gains, increased 17 percent to $1.9 million for the first quarter of 1993, compared to the first quarter of 1992. Noninterest expense was up 32 percent, largely due to the additional staff and infrastructure required to support the growth in mortgages.
 Credit quality remained sound. Nonperforming assets of $8.6 million were 2.53 percent of total assets, comparing favorably to the peer group average. The reserve ratio was 2.17 percent, excluding the mortgages held for sale. Net chargeoffs were $379 thousand, or an annualized 0.59 percent of average loans.
 Assets were $342 million at March 31, 1993. Common book value was $9.04. The completion of the preferred stock offering during the quarter resulted in substantially higher capital ratios. Core capital to risk-based assets was 12.02 percent and total capital to risk-based assets was 13.28 percent at March 31, 1993.
 Redwood Empire Bancorp is the holding company for two operating subsidiaries: Allied Savings Bank, F.S.B., a savings institution, and National Bank of the Redwoods, a commercial bank. The company operates throughout Northern California.
 REDWOOD EMPIRE BANCORP AND SUBSIDIARIES
 Condensed Consolidated Statement of Operations
 (Dollars in thousands except for earnings per share and share data)
 Three Months Ended
 March 31, March 31,
 1993 1992
 Interest Income $5,835 $4,873
 Interest expense 2,780 2,559
 Net interest income 3,055 2,314
 Provision for loan losses 345 218
 Net interest income after loan
 loss provision 2,710 2,096
 Other income 3,477 2,342
 Other expense 4,800 3,627
 Net income before taxes 1,387 811
 Income taxes 582 354
 Net income $ 805 $ 457
 Preferred dividends 96 ---
 Net income available for
 common stock 709 457
 Earnings per common and common
 equivalent share:
 Primary:
 Net income $ 0.28 $ 0.24
 Weighted average shares 2,574,586 1,937,511
 Fully diluted:
 Net income $ 0.28 $ 0.24
 Weighted average shares 2,574,586 1,937,511
 Selected Balance Sheet Data
 (In thousands)
 March 31, March 31,
 1993 1992
 Total Loans $286,346 $194,867
 Allowance for Loan Loss 4,286 2,590
 Total Assets 342,415 249,660
 Total Deposits 287,748 228,672
 Equity Capital 28,069 16,470
 Non Performing Assets 8,648 5,738
 Selected Ratios (percent)
 Return on Average Common
 Equity 12.72 11.39
 Return on Average Total
 Equity 13.24 11.39
 Return on Average Assets 1.00 0.77
 -0- 4/26/93 R
 /CONTACT: Doug Sherk or Jenifer Kirtland 415-296-7383, or Michele Katz or Miriam Adler, 212-986-5900, all of Morgen-Walke, for Redwood Empire/
 (REB)


CO: Redwood Empire Bancorp; Allied Savings Bank, F.S.B.;
 National Bank of the Redwoods ST: California IN: FIN SU: ERN


ML-GT -- SF006 -- 0595 04/26/93 10:53 EDT
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Publication:PR Newswire
Date:Apr 26, 1993
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