REDWOOD FALLS, Minn., Dec. 12 /PRNewswire-FirstCall/ -- Redwood
Financial, Inc. (the "Company") (OTC:REDW), the parent holding
company of HomeTown Bank has announced net earnings for the first
fiscal quarter ended September 30, 2006. For the three months ended
September 30, 2006, the Company recorded net earnings of $52,978.
Basic and diluted earnings per share were $0.12 per share, and
$0.11 per share, respectively. Comparatively, 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. At September 30, 2006, the
Company reported total consolidated assets and consolidated
stockholders' equity of $86.1 million and $8.1 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
September 30, June 30, 2006 2006 Cash $ 488,685 552,688
Interest-bearing deposits with banks 1,733,011 1,835,394 Cash and
cash equivalents 2,221,696 2,388,082 Securities available for sale:
Mortgage-backed and related securities 9,798,517 5,612,705
Investment securities 13,597,843 8,910,724 Total securities
available for sale 23,396,360 14,523,429 Loans receivable, net
54,644,483 53,485,138 Federal Home Loan Bank stock, at cost
1,500,900 1,347,900 Accrued interest receivable 774,047 584,676
Premises and equipment, net 2,799,871 2,791,774 Deferred tax asset
268,427 380,537 Other assets 572,660 154,581 Total Assets $
86,178,444 75,656,117 Liabilities and Stockholders' Equity Deposits
61,172,382 55,088,611 Federal Home Loan Bank advances 15,600,000
11,500,000 Accrued interest payable 691,027 685,935 Advance
payments by borrowers for taxes and insurance 201,538 111,285 Notes
Payable - Subordinated Debt 6,186,000 Accrued expenses and other
liabilities 187,438 317,961 Total Liabilities 78,030,685 67,703,792
Common stock ($.10 par value): Authorized and issued 1,125,000
shares; outstanding 446,988 shares at September 30, 2006 and
446,988 shares at June 30, 2006 112,500 112,500 Additional paid-in
capital 8,819,213 8,819,213 Retained earnings, subject to certain
restrictions 9,020,551 8,967,573 Accumulated other comprehensive
gain (loss), net (227,409) (369,865) Treasury stock, at cost,
678,012 shares at September 30, 2006 and 678,012 June 30, 2006
(9,577,096) (9,577,096) Total Stockholders' Equity 8,147,759
7,952,325 Total Liabilities and Stockholders' Equity $ 86,178,444
75,656,117 REDWOOD FINANCIAL, INC. AND SUBSIDIARY Consolidated
Statements of Earnings (Unaudited) Three months ended September 30,
2006 2005 Interest Income: Loans receivable $ 994,494 838,548
Securities available for sale: Mortgage-backed and related
securities 65,676 53,913 Investment securities 114,790 98,037 Cash
equivalents and other 13,893 9,855 Total interest income 1,188,853
1,000,353 Interest Expense: Deposits 442,615 136,290 Federal Home
Loan Bank advances 155,994 290,183 Total interest expense 598,609
426,473 Net interest income 590,244 573,880 Provision for losses on
loans 0 27,500 Net interest income after provision for losses on
loans 590,244 546,380 Noninterest income: Fees and service charges
75,681 4,650 Gain on sale of securities available for sale 0
119,227 Other 12,463 3,733 Total noninterest income 88,144 127,610
Noninterest expense: Compensation and employee benefits 380,492
357,498 Occupancy 90,246 11,331 Professional fees 7,135 80,329
Advertising 17,948 1,768 Data processing expense 22,845 24,022
Federal deposit insurance premiums 1,676 10,073 Other 80,582 87,375
Total noninterest expense 600,924 572,396 Earnings before income
taxes 77,464 101,594 Income tax expense 24,486 33,867 Net earnings
$ 52,978 67,727 Net earnings per common share - Basic $ 0.12 0.14
Net earnings per common share - Diluted 0.11 0.13 REDWOOD
FINANCIAL, INC. AND SUBSIDIARIES Selected Consolidated Financial
Information (Unaudited) Three months ended September 30, 2006 2005
Profitability Measures: Net income 52,978 67,727 Basic earnings per
share 0.12 0.14 Diluted earnings per share 0.11 0.13 Return on
average assets 0.27% 0.37% Return on average equity 2.54% 3.07% Net
interest spread 3.02% 3.09% Net yield on interest earning assets
3.21% 3.31% Ratio of operating expense to average total assets
(annualized) 3.11% 3.13% Period Ended Year Ended Year Ended
September 30, June 30, June 30, Financial Position: 2006 2006 2005
Total assets 86,178,444 75,656,117 74,071,500 Total stockholders'
equity 8,147,759 7,952,325 8,682,827 Average total assets
77,347,637 74,475,642 74,063,448 Average total equity 8,338,217
8,279,286 9,229,542 Loans receivable, net 54,644,483 53,485,138
48,961,758 Securities available for sale net of mark to market
23,396,360 14,523,429 16,999,823 Unrealized gain on securities
available for sale (377,054) (613,253) (141,353) Non-performing
assets 15,524 0 0 Non-performing assets to total assets 0.02% 0.00%
0.01% Allowance for loan losses 546,064 546,064 467,961 Allowance
for loan losses to total assets 0.59% 0.72% 0.63% Allowance for
loan losses to total loans receivable 0.99% 1.01% 0.95% Net
charge-offs (recoveries) 73,895 (6,603) (1,408) Stockholders'
equity to total assets, at end of period 8.84% 10.51% 11.72% Total
shares outstanding 446,988 446,988 477,028 Book value per share
(excluding mark to market) 19.07 19.16 18.50 Book value per share
(including mark to market) 18.23 17.79 18.20 Ratio of average
interest- earning assets to average Interest-bearing liabilities
105.50% 107.24% 109.22% DATASOURCE: Redwood Financial, Inc.
CONTACT: Dean K Toft of Redwood Financial, +1-507-644-4663, or Fax:
+1-507-644-4664 Web site: http://www.redwoodfinancial.com/
Copyright