Redwood Empire Bancorp reported first-quarter net income of $580,000, down 34%. Earnings per share fell 74% to 16 cents a share.
Net interest income fell 7.5% in the first quarter. The parent company of Allied Bank said the drop was largely due to decreased loan volume, primarily A paper mortgages held for sale.
The net interest margin increased 37 basis points to 4.69%, from 4.32% in the first quarter of 1996.
Nonperforming assets as of March 31 amounted to 3.38% of total assets, compared to 2.64% as of Dec. 31, 1996. The company said the increase was due primarily to mortgage loan repurchases from investors, and to an increase in restructured loans and foreclosed real estate.