UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
(Mark One)
[ x ] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2002
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Commission File Number 0-19231
A. Full title of the Plan and address of the Plan, if different from that of
the issuer named below:
REDWOOD EMPIRE BANCORP 401(K) PROFIT SHARING PLAN
B. Name of issuer of the securities held pursuant to the Plan and the address
of its principal executive offices:
REDWOOD EMPIRE BANCORP
111 Santa Rosa Avenue
Santa Rosa, California 95404-4905
Registrant's telephone number, including area code: (707) 573-4800
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1.
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Trustees have (or other persons who administer the employee benefit plan)
duly caused this annual report to be signed by the undersigned thereunto duly
authorized.
REDWOOD EMPIRE BANCORP 401(K) PROFIT SHARING PLAN
/s/ James E. Beckwith
By: ________________________________________
James E. Beckwith
Executive Vice President and
Chief Operating Officer
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2.
CONTENTS
REPORT OF INDEPENDENT AUDITORS ............................................................................... 5
FINANCIAL STATEMENTS
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS ......................................................... 6
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS................................................ 7
NOTES TO FINANCIAL STATEMENTS ........................................................................... 8
SUPPLEMENTAL SCHEDULES REPORTED
SCHEDULE H, LINE 4i - SCHEDULE OF ASSETS (HELD AT END OF YEAR)........................................... 13
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3.
REDWOOD EMPIRE BANCORP
401(k) Profit Sharing Plan
FINANCIAL STATEMENTS
December 31, 2002 and 2001
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4.
REPORT OF INDEPENDENT AUDITORS
Redwood Empire Bancorp
401(k) Profit Sharing Plan
Santa Rosa, California
We have audited the accompanying statements of net assets available for benefits
of the Redwood Empire Bancorp 401(k) Profit Sharing Plan as of December 31, 2002
and 2001 and the related statement of changes in net assets available for
benefits for the year ended December 31, 2002. These financial statements are
the responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Plan as of
December 31, 2002 and 2001, and the changes in net assets available for benefits
for the year ended December 31, 2002 in conformity with generally accepted
accounting principles.
Our audit was conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedule of assets (held
at end of year) is presented for the purpose of additional analysis and is not a
required part of the basic financial statements but is supplementary information
required by the Department of Labor's Rules and Regulations for Reporting and
Disclosure under the Employee Retirement Income Security Act of 1974. The
supplemental schedule has been subjected to the auditing procedures applied in
the audit of the basic financial statements and, in our opinion, is fairly
stated in all material respects in relation to the basic financial statements
taken as a whole.
Crowe Chizek and Company LLC
South Bend, Indiana
May 16, 2003
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5.
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
December 31, 2002 and 2001
- ------------------------------------------------------------------------------------------------------------------------------------
2002 2001
---- ----
ASSETS
Investments, at fair value $ 3,384,321 $ 3,763,665
Cash and cash equivalents 37,340 5,689
Employer contribution receivable 221,602 227,882
--------------- --------------
NET ASSETS AVAILABLE FOR BENEFITS $ 3,643,263 $ 3,997,236
=============== ==============
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See accompanying notes to financial statements.
6.
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
Year ended December 31, 2002
- ------------------------------------------------------------------------------------------------------------------------------------
Additions to net assets attributed to:
Investment income (loss)
Net depreciation in fair value of investments $ (827,137)
Interest and dividends 66,612
----------------
Total (760,525)
Contributions
Employer 221,602
Participants 449,252
Rollovers 4,469
----------------
Total 675,323
----------------
Total (85,202)
Deductions from net assets attributed to:
Benefits paid directly to participants or their beneficiaries 267,069
Expenses 1,702
----------------
Total 268,771
----------------
Net decrease (353,973)
Net assets available for benefits
Beginning of year 3,997,236
----------------
End of year $ 3,643,263
================
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See accompanying notes to financial statements.
7.
REDWOOD EMPIRE BANCORP 401(k) Profit Sharing Plan
NOTES TO FINANCIAL STATEMENTS
December 31, 2002 and 2001
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NOTE 1 - DESCRIPTION OF PLAN
The following description of the Redwood Empire Bancorp (the "Company") 401(k)
Profit Sharing Plan (the "Plan") is provided for general information purposes
only. Participants should refer to the Plan agreement for a more complete
description of the Plan's provisions.
General: The Plan, established on January 1, 1987, is a defined contribution
plan covering eligible employees of the Company. Employees must be 21 years of
age and must have completed 90 days of service to be eligible for participation
in the Plan. The Plan is subject to the provisions of the Employee Retirement
Income Security Act of 1974.
Contributions: Each year, participants may contribute up to 15 percent of pretax
annual compensation, as defined in the Plan. Participants may also contribute
amounts representing distributions from other qualified defined benefit or
defined contribution plans. Participants direct the investment of their
contributions into various investment options offered by the Plan.
The Plan also allows employer matching and non-matching contributions to be made
at the discretion of the Company. The method for determining discretionary
employer matching contributions for the years ended December 31, 2002 and 2001,
is as follows:
Employee Percent Employer
Contribution Match Contribution
First $600 100% $ 600
Next $1,200 75 900
Next $2,500 50 1,250
Next $5,000 25 1,250
Therefore, the maximum employer matching contribution per employee for the years
ended December 31, 2002 and 2001 was $4,000. There were no employer non-matching
contributions during the years ended December 31, 2002 and 2001.
Participant Accounts: Each participant's account is credited with the
participant's contributions, allocations of the Company's contribution, and
investment earnings. Allocation of the Company contribution is based on
participants' compensation, as defined in the Plan. Allocation of investment
earnings is based on participants' account balances. Forfeited balances of
terminated participants' non-vested accounts must first be used to reduce the
Plan's administrative costs and any remaining forfeitures are to be allocated to
participant accounts as an employer non-elective contribution. The benefit to
which a participant is entitled is the participant's vested account balance.
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8.
NOTE 1 - DESCRIPTION OF PLAN (Continued)
Forfeitures: The non-vested portion of terminated participants accounts plus
earnings thereon are forfeited and can be used by the Plan to reduce the amount
of future expenses incurred by the Plan. At December 31, 2002, forfeited
accounts totaled $5,508 which is available to reduce future expense incurred by
the Plan.
Investment Options: The Plan requires that participant accounts be invested on
a self-directed basis in investment products offered by Charles Schwab & Co.,
Inc., which may include the purchase of the Company's stock.
Vesting: Participants are entitled to the full value of their contributions and
earnings thereon at any time. The Plan provides for 20% vesting of the
participant's interest in the Company's contributions for each year of service
(as defined by the Plan). Upon termination of employment due to retirement,
death, disability, or separation from service, the vested balances in the
participants' accounts will be distributed to the participants or their
beneficiaries in a lump sum, equal periodic installments in the form of an
annuity, or any combination thereof, at the election of the participant or their
beneficiary.
Withdrawals: A participant in the Plan may make full or partial withdrawals of
funds subject to the provisions of the Plan. Terminated employees may also apply
for and receive hardship withdrawals from the Plan.
Termination: The Company expects to continue the Plan indefinitely, but reserves
the right to amend, suspend or discontinue the Plan in whole or in part at any
time by action of the Company's Board of Directors. Upon termination of the
Plan, each participant's account would fully vest and be non-forfeitable.
Loan Provisions: Participants may borrow from their fund accounts a minimum of
$1,000 up to a maximum of $50,000 or 50 percent of their vested account valance,
whichever is less. The loans are secured by the balance in the participant's
account and bear interest at rates that range from 5.25 percent to 10.50
percent.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The policies and principles which significantly affect the accounting for net
assets and results of operations are summarized below.
Basis of Accounting: The accompanying financial statements are prepared on the
accrual basis of accounting.
Cash and Equivalents: Includes cash and money market accounts valued at cost.
Investments: Investments are stated at fair value as determined by quoted market
prices. Realized gains or losses on the sale of investments are recorded on the
trade date as the difference between the proceeds received and the current value
of the investments at the beginning of the year or their cost if acquired during
the year. Net appreciation (depreciation) in fair value of investments includes
net unrealized market appreciation and depreciation, net realized gains and
losses on the sale of investments during the period, and is net of investment
expenses.
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9.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Distributions: Distributions to participants are recorded when paid.
Use of Estimates: In preparing the financial statements of the Plan, management
makes estimates and assumptions that affect the reported amounts of net assets
available for benefits at the date of the financial statements and the reported
amounts of changes in net assets available for benefits during the reporting
period. Actual results could differ from those estimates.
NOTE 3 - INCOME TAXES
The Plan has received a favorable determination letter dated November 27, 2001
from the Internal Revenue Service as to its qualified status. The Plan
administrator believes that the Plan is being operated in compliance with
applicable requirements of the Internal Revenue Code and the Employee Retirement
Income Security Act, and that the trust, which operates with the Plan, is exempt
from income tax.
NOTE 4 - ADMINISTRATION COSTS
In accordance with the Plan, all costs and expenses of administering the Plan
are borne by the Company to the extent that the costs and expenses exceed the
balance in the forfeiture account, except for expenses paid to the recordkeeper
and for commissions on investment transactions which are deducted from
participant accounts.
NOTE 5 - INVESTMENTS
Investments representing more than 5% of the net assets available for benefits
at December 31, 2002 and 2001 are as follows:
Investments at Quoted Market Value: 2002 2001
---------------------------------- ---- ----
Redwood Empire Bancorp common stock $ 456,961 $ 441,515
Firsthand Technology Value Fund 155,698 375,529
Schwab S&P 500 Select Fund 393,915 442,223
Schwab Retirement Money Fund 247,439 201,751
Schwab Money Market Fund 218,152 143,660
Strong Corporate Bond Fund 255,419 266,228
Artisan International Fund 193,126 181,235
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10.
NOTE 5 - INVESTMENTS (Continued)
The following table presents the net depreciation (including investments bought,
sold and held during the year) in fair market value for each of the Plan's
investment categories for the year ended December 31, 2002.
Mutual funds $ (812,255)
Common stock (14,882)
--------------
$ (827,137)
==============
All of the Plan's investments are uninsured.
NOTE 6 - PARTY-IN-INTEREST TRANSACTIONS
Parties-in-interest are defined under Department of Labor Regulations as any
fiduciary of the Plan, any party rendering services to the Plan, the employer
and certain others.
The Plan's investments include Redwood Empire Bancorp common stock and Schwab
S&P 500 Select Fund and various Schwab money market funds which represent
party-in-interest transactions that qualify as exempt prohibited transactions.
During 2002, the plan sold 2,084 shares of Redwood Empire Bancorp common stock
at a range of $26.07 to $30.21 per share. During 2002, 1,242 shares of Redwood
Empire Bancorp common stock were purchased at a cost ranging from $26.08 to
$30.95 per share. Additionally, the Plan sold 5,619 units of Schwab S&P 500
Select Fund at a range of $13.00 to $18.02 per unit. The Plan purchased 9,699
units of Schwab S&P 500 Select Fund at a cost ranging from $12.12 to $18.09 per
unit.
At December 31, 2002 and 2001, the Plan held the following party-in-interest
investments (at quoted market value):
Redwood Empire Bancorp common stock,
17,179 and 18,021 shares $ 456,961 $ 441,515
Schwab S&P 500 Select Fund,
29,050 and 24,970 units 393,915 442,223
Schwab Retirement Money Fund,
247,439 and 201,751 units 247,439 201,751
Schwab Value Advantage Money Fund,
23,590 and 10,579 units 23,590 10,579
Schwab Money Market Fund,
218,152 and 143,660 units 218,152 143,660
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11.
SUPPLEMENTAL INFORMATION
- --------------------------------------------------------------------------------
12.
REDWOOD EMPIRE BANCORP 401(k) Profit Sharing Plan
SCHEDULE H, LINE 4i - SCHEDULE OF ASSETS (HELD AT END OF YEAR)
December 31, 2002
Name of Plan Sponsor: Redwood Empire Bancorp
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Employer Identification Number: 68-0166366
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Three-digit Plan Number: 001
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(c)
Description of Investment
(b) Including Maturity Date, (e)
Identity of Issue, Borrower, Rate of Interest, Collateral, (d)(1) Current
(a) Lessor, or Similar Party Par or Maturity Value Cost Value
--- ------------------------ --------------------- ---- -----
* Redwood Empire Bancorp
common stock 17,179 shares $ 456,961
Money Market Accounts
* Schwab Retirement Money Fund 247,439 units 247,439
* Schwab Value Advantage
Money Fund 23,590 units 23,590
* Schwab Money Market Fund 218,152 units 218,152
Mutual Funds
Artisan International Fund 13,058 units 193,126
Baron Asset Fund 5,002 units 172,165
Firsthand Technology Value Fund 8,607 units 155,698
GAM International Fund 7,033 units 89,960
Janus Mercury Fund 7,501 units 110,721
Montgomery Emerging Markets
Fund 4,079 units 32,141
NB Genesis Fund 4,362 units 85,749
Oakmark Fund 2,893 units 87,013
Pin Oak Aggressive Stock 4,134 units 49,157
RS Emerging Growth Fund 4,121 units 78,914
RS Value Plus Growth Fund 3,603 units 44,569
* Schwab S&P 500 Select Fund 29,050 units 393,915
Sound Shore Fund 2,997 units 77,349
Strong Corporate Bond Fund 25,567 units 255,419
Personal Choice Account See attached listing 532,273
* Loans to Participants Interest rates
ranging from
5.25% to 10.50% 80,010
---------------
$ 3,384,321
===============
* Denotes party-in-interest.
(1) Cost is not presented as all investments are participant directed
investments.
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13.
PERSONAL CHOICE ACCOUNT LISTING
REDWOOD EMPIRE BANCORP 401(K) PSP
ACCOUNT NUMBER: 701347-PCRA
REPORTING PERIOD: 12/31/01 TO 12/31/02
SHARES/ ENDING
UNITS DESCRIPTION MARKET
- -----------------------------------------------------------------------------------------
COMMON STOCK
----------------------------------------------------------
146.000 A T & T WIRELESS SERVICES 824.90
100.000 ADV FIBRE COMMUN INC 1,668.00
100.000 ADVANCED LTG TECH 33.00
200.000 ADVANCED MICRO DEVICES 1,292.00
188.000 AGILENT TECHNOLOGIES INC 3,376.48
162.567 AMEREN CORP 6,757.90
50.000 AMR CORP DEL 330.00
500.000 AOL TIME WARNER INC 6,550.00
3,050.000 APPLIED DIGITAL SOLUTIONS 1,250.50
100.000 APPLIED MATERIALS INC 1,303.00
92.000 AT & T CORP NEW 2,402.12
8.000 AVAYA INC 19.60
56.123 BANK OF AMERICA CORP 3,904.44
604.000 BEMA GOLD CORP 785.20
300.000 BETHLEHEM STEEL CORP 33.00
102.579 BOEING CO 3,384.06
0.959 CHEVRONTEXACO CORP 63.77
1,332.000 CISCO SYSTEM INC 17,449.20
103.721 CLOROX CO 4,278.47
82.562 COCA COLA COMPANY 3,617.87
148.000 COMCAST CORP NEW CL A 3,488.36
300.000 COMPUTRZD THERML IMAGING 57.00
150.000 COREL CORP 120.00
100.000 COSTCO WHSL CORP NEW 2,806.00
171.000 DAIMLERCHRYSLER AG 5,241.15
200.000 DELL COMPUTER CORP 5,348.00
50.000 DUN & BRADSTREET CORP NEW 1,724.50
500.000 E F J INC 625.00
110.000 E M C CORP MASS 675.40
100.000 ELAN CORP PLC SPON ADR 246.00
500.000 ELDORADO GOLD CORP NEW 655.00
100.000 EPICOR SOFTWARE CORP 125.00
300.000 FIRST DATA CORPORATION 10,623.00
100.000 FORD MOTOR COMPANY NEW 930.00
152.447 GAP INC 2,365.98
26.000 GARTNER GROUP INC CL B 245.70
505.100 GENERAL ELECTRIC COMPANY 12,299.18
90.000 GENESIS MICROCHIP INC 1,174.50
119.364 GENUINE PARTS CO 3,676.40
100.000 GLOBAL CROSSING LTD 1.80
265.000 GOLDBELT RESOURCES NEW 13.25
309.342 HEWLETT-PACKARD COMPANY 5,370.18
300.000 HOME DEPOT INC 7,188.00
200.000 IMS HEALTH INC 3,200.00
350.698 INTEL CORP 5,460.37
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14.
REDWOOD EMPIRE BANCORP 401(K) PSP
ACCOUNT NUMBER: 701347-PCRA
REPORTING PERIOD: 12/31/01 TO 12/31/02
SHARES/ ENDING
UNITS DESCRIPTION MARKET
- -----------------------------------------------------------------------------------------
COMMON STOCK
----------------------------------------------------------
900.000 INTERACTIVE DATA CORP 12,375.00
859.000 INTL FUEL TECH INC NEW 85.90
100.150 INTL SPEEDWAY CL A 3,734.58
60.000 JDS UNIPHASE CORPORATION 148.20
41.052 KIMBERLY CLARK CORP 1,948.75
200.000 LIBERATE TECHNOLOGIES 286.00
0.054 LUCENT TECHNOLOGIES INC 0.07
102.831 MCDONALDS CORP 1,653.52
15,200.000 MEDIZONE INTL INC 532.00
230.427 MEDTRONIC INC 10,507.47
300.000 MICROSOFT CORP 15,510.00
53.000 MIRANT CORPORATION 100.17
50.000 MONDAVI ROBERT WINERY CL A 1,550.00
100.000 MOODYS CORP 4,129.00
189.366 MOTOROLA INCORPORATED 1,638.01
3,880.000 NEXT LEVEL COMMUNICATIONS 3,142.80
50.000 NIKE INC 2,223.50
500.000 NOKIA CORP SPON ADR F 7,750.00
115.762 NORFOLK SOUTHN CORP 2,314.08
150.000 OFFICE DEPOT INC 2,214.00
548.000 ORACLE CORPORATION 5,918.40
383.882 PFIZER INCORPORATED 11,735.27
500.000 PORTAL SOFTWARE INC 404.00
80.000 QUALCOMM INC 2,911.20
20.000 R H DONNELLEY CORPNEW 586.20
100.000 SAFETY-KLEEN CORP NEW 6.00
100.000 SAFEWAY 2,336.00
148.429 SOUTHERN CO 4,213.89
400.000 STARBUCKS CORP 8,152.00
320.000 SUN MICROSYSTEMS INC 995.20
10.000 SYNAVANT INC 9.30
700.000 SYQUEST TECH INC NEW 0.21
3,300.000 TEKELEC 34,485.00
301.422 TYCO INTL LTD NEW 5,148.29
50.000 UAL CORP 71.50
145.000 VERISIGN INC 1,162.90
900.000 VICEROY RESOURCE CORP 225.00
200.000 VITESSE SEMICONDUCTOR CORP 437.00
101.556 WAL-MART STORES INC 5,129.60
100.000 WEBVAN GROUP INC 0.01
1,175.000 WORLDCOM INC 162.15
47.000 WORLDCOM INC - MCI GROUP 8.46
100.000 XIN NET CORP 6.50
50.000 YAHOO! INC 817.50
-------------
289,747.91
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15.
REDWOOD EMPIRE BANCORP 401(K) PSP
ACCOUNT NUMBER: 701347-PCRA
REPORTING PERIOD: 12/31/01 TO 12/31/02
SHARES/ ENDING
UNITS DESCRIPTION MARKET
- -----------------------------------------------------------------------------------------
MUTUAL FUNDS
----------------------------------------------------------
493.395 AMERICAN CENTURY ULTRA FUND 10,450.11
1,635.857 BERGER GROWTH FUND 8,130.21
281.450 BURNHAM FINANCIAL SERVICES FD 5,158.98
1,367.746 COLUMBIA SPECIAL FUND CL Z 20,228.96
1,675.381 DREYFUS SMALL CAP STOCK INDEX 20,908.75
749.453 FEDERATED HIGH-YIELD TRUST 4,017.07
37.962 FIRSTHAND TECHNOLOGY VALUE FD 686.73
728.200 HENNESSY CORNERSTONE GROWTH FUND 9,663.21
758.725 ICON INFORMATION TECHNOLOGY FD CL A 4,522.00
98.756 INTERNET FUND 1,648.24
1,804.181 INVESCO SELECT INCOME FUND 9,381.74
275.819 JANUS BALANCED FUND 4,931.64
356.292 JANUS OVERSEAS FUND 5,447.70
289.931 JANUS WORLDWIDE FUND 9,315.48
177.293 NAVELLIER LARGE CAP GROWTH FD 2,161.20
1,610.619 NB GUARDIAN FD 17,104.77
357.200 PBHG GROWTH FUND 5,065.10
283.904 PBHG SELECT EQUITY FUND 4,573.69
7.255 PROFUNDS ULTRA OTC FUND 78.28
1,284.551 RYDEX OTC FUND 8,722.10
724.846 SCHWAB S&P 500 INV SHS 9,814.41
472.436 SCHWAB 1000 FUND 11,744.76
793.328 STRONG GROWTH 20 FUND 8,084.01
317.843 VANGUARD F-1 SECS GNMA PORTFOLIO 3,416.81
-------------
185,255.95
UNIT INVESTMENT TRUSTS
----------------------------------------------------------
2,350.000 NASDAQ 100 SHARES 57,269.50
-------------
57,269.50
-------------
532,273.36
=============
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16.