REDWOOD FALLS, Minn.,
Feb. 8, 2011 /PRNewswire/ -- Redwood
Financial, Inc. (Pink Sheets: REDW) (the "Company"), the parent
holding company of HomeTown Bank has announced net earnings for the
year ended December 31, 2010.
For the year ended December 31,
2010, the Company recorded net earnings of $1,360,727. Basic and diluted earnings per
share were $ 2.65 per share, and
$ 2.65 per share, respectively.
Comparatively, for the year ended December 31, 2009, the Company recorded net
earnings of $1,045,288. Basic
and diluted earnings per share were $1.97 per share, and $1.96 per share, respectively.
At December 31, 2010, the Company
reported total consolidated assets and consolidated stockholders'
equity of $178.4 million and
$15.1 million, respectively.
HomeTown Bank is headquartered in Redwood Falls, Minnesota and operates through
its main office in Redwood Falls
and its branch offices located in Olivia, Henderson, St.
Peter, Le Sueur,
Cleveland and Jordan, Minnesota. The holding company
stock is listed on the Pink Sheets under the symbol REDW. The
Bank's deposits are insured up to maximum legal limits by the
Federal Deposit Insurance Corporation (FDIC).
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REDWOOD
FINANCIAL, INC. AND SUBSIDIARY
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Consolidated
Balance Sheets
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(unaudited)
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December
31,
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2010
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2009
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ASSETS
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Cash and due from
banks
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$
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2,780,652
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3,501,305
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Interest-bearing deposits
due from banks
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305,661
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312,474
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Cash and cash
equivalents
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3,086,313
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3,813,779
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Interest-bearing deposits
in banks
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2,940,000
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4,314,000
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Securities available for
sale
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27,700,893
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32,433,422
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Loans Receivable, net
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127,294,417
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122,066,887
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Investments in restricted
stock
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3,290,200
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2,422,100
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Accrued interest
receivable
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1,352,327
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1,258,482
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Premises and equipment,
net
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6,916,994
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7,096,267
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Goodwill
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4,478,398
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4,478,398
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Real estate owned,
net
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427,000
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744,545
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Other assets
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944,828
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1,380,735
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TOTAL ASSETS
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$
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178,431,370
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180,008,615
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LIABILITIES AND STOCKHOLDERS'
EQUITY
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Deposits
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143,511,399
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147,492,941
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Borrowings
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11,703,702
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10,629,931
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Accrued interest
payable
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315,103
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547,400
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Advance payments by
borrowers for taxes and insurance
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271,743
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244,689
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Accrued expenses and other
liabilities
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721,628
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187,398
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Deferred Tax
Liability
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626,866
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752,246
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Total
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157,150,441
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159,854,605
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Subordinated
debentures
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6,186,000
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6,186,000
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TOTAL
LIABLILITES
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163,336,441
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166,040,605
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Preferred Stock - Capital
Purchase Program
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3,053,000
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3,023,000
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Common stock ($.10 par
value): Authorized and issued
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1,125,000 shares;
outstanding 442,151 at December 31, 2010 and
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441,931 shares at
December 31, 2009
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112,500
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112,500
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Additional paid-in
capital
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8,960,673
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8,960,673
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Retained earnings, subject
to certain restrictions
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12,264,084
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11,098,182
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Accumulated other
comprehensive gain (loss), net
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303,704
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376,664
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Treasury stock, at cost,
682,849 shares at
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December 31, 2010;
683,069 shares at December 31, 2009
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(9,599,032)
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(9,603,009)
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TOTAL STOCKHOLDERS'
EQUITY
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15,094,929
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13,968,010
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TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY
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$
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178,431,370
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180,008,615
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REDWOOD
FINANCIAL, INC. AND SUBSIDIARY
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Consolidated
Statements of Earnings
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(Unaudited)
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December
31,
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2010
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2009
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Interest Income:
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Loans
receivable
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$
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8,912,086
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8,055,428
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Securities available for
sale:
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Mortgage-backed and related securities
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502,459
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714,839
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Investment
securities
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520,779
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486,727
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Cash equivalents and
other
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14,306
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15,172
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Total interest income
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9,949,630
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9,272,166
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Interest Expense:
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Deposits
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1,616,348
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2,308,003
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Borrowings
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244,562
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307,606
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Subordinate
Debt
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434,644
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434,644
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Sweep Management
Funds
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12,399
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23,650
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Total interest
expense
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2,307,953
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3,073,903
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Net interest income
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7,641,677
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6,198,263
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Provision for losses on
loans
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1,000,000
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380,000
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Net interest income after
provision for losses on loans
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6,641,677
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5,818,263
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Noninterest income:
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Gains on sale of
securities available for sale
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66,760
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90,669
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Sales
Commissions
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234,521
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273,281
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Fees and service
charges
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1,096,295
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1,011,127
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Other
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217,312
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114,745
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Total noninterest
income
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1,614,888
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1,489,822
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Noninterest expense:
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Compensation and employee
benefits
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3,704,902
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3,316,133
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Advertising
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100,812
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106,565
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Occupancy
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669,601
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618,071
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Federal deposit insurance
premiums
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278,362
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194,480
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Professional
fees
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96,993
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215,326
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Data processing
expense
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284,287
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298,461
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Other
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1,034,032
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891,790
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Total noninterest
expense
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6,168,989
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5,640,826
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Earnings before income
taxes
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2,087,576
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1,667,259
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Income tax expense
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726,849
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621,971
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Net earnings
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$
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1,360,727
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1,045,288
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Net earnings per common share -
Basic
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$
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2.65
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1.97
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Net earnings per common share -
Diluted
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$
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2.65
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1.96
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REDWOOD
FINANCIAL, INC. AND SUBSIDIARIES
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Selected
Consolidated Financial Information
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(unaudited)
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December
31,
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2010
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2009
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Profitability
Measures:
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Net income
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1,360,727
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1,045,288
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Basic earnings per
share
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2.65
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1.97
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Diluted earnings per
share
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2.65
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1.96
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Return on average
assets
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0.76%
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0.66%
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Return on average
equity
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9.31%
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7.84%
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Net interest spread
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4.68%
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4.20%
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Net yield on interest earning
assets
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4.69%
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4.24%
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Ratio of operating expense to
average total assets (annualized)
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3.45%
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3.54%
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Financial
Position:
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Total assets
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178,431,370
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180,008,615
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Total shareholders'
equity
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15,094,929
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13,968,010
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Average total assets
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178,851,750
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159,125,316
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Average total equity
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14,621,816
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13,326,338
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Loans receivable, net
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127,294,417
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122,066,887
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Securities available for sale
net of mark to market
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27,700,893
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32,433,422
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Net unrealized gain on
securities available for sale
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506,174
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627,773
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Non-performing assets
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1,497,316
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1,162,529
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Non-performing assets to total
assets
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0.84%
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0.65%
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Allowance for loan
losses
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1,521,358
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1,168,857
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Allowance for loan losses to
total assets
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0.85%
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0.65%
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Allowance for loan losses to
total loans receivable
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1.18%
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0.95%
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Net charge-offs
(recoveries)
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561,304
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491,860
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Stockholders' equity to total
assets, at end of period
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8.46%
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7.76%
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Total shares
outstanding
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442,151
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441,931
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Book value per share (excluding
mark to market)
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32.99
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30.19
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Book value per share (including
mark to market)
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34.14
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31.61
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Ratio of average
interest-earning assets to average
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interest-bearing
liabilities
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100.84%
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102.14%
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SOURCE Redwood Financial, Inc.