DEFIANCE, Ohio, April 18, 2007 (PRIME NEWSWIRE) -- Rurban Financial Corp. (Nasdaq:RBNF), a leading provider of full-service community banking, investment management, trust services and bank data processing, today reported first quarter 2007 net income of $702,000 compared with $523,000 for the first quarter of 2006, up 34 percent. Diluted earnings per share were $0.14, compared to $0.10 reported for the year-ago first quarter.
Highlights of the quarter include:
* Completion of the merger of banking activities into Rurban's lead bank. Effective as of the opening of business on March 26, 2007, Rurban merged Reliance Financial Services, N.A., its trust and investment subsidiary, and The Exchange Bank, its recently acquired community bank, into The State Bank and Trust Company. The newly- consolidated bank had assets of $529.2 million at period-end. * Rurban reduced expenses during the first quarter by more than $1.8 million on an annualized basis. Most of the expense reductions were related to the merger, which occurred late in the first quarter. Therefore, it is anticipated that the second quarter of 2007 should reflect the impact of the majority of the targeted $1.0 million to $1.5 million annualized pre-tax efficiencies from the merger. Approximately $95,000 of one-time expenses were incurred in the first quarter as a result of implementing these efficiencies. * Bank performance continues to improve. First quarter 2007 net income for State Bank and Trust was $707,000, an increase of $173,000 or 32.4 percent above the year-ago first quarter and $138,000 or 24.3 percent over the linked fourth quarter. The bank's efficiency ratio improved to 84.0 percent this quarter, from 91.7 percent in the previous quarter and 86.7 percent for the first quarter of 2006. The efficiencies that were implemented in the first quarter are expected to improve the banking operating efficiency ratios beginning in the second quarter. * Continuing improvement in asset quality. Non-performing assets at quarter-end were $4.1 million, or 0.75 percent of total assets, compared with $8.8 million, or 1.64 percent, for the first quarter of 2006 and up nominally from the linked quarter. Net charge-offs were $41,000 or 0.04 percent of average loans this quarter compared with $597,000 or 0.72 percent of average loans for the year-ago quarter. * State Bank and Trust Company opened two new banking offices. On January 2, 2007, the full-service banking center in Fort Wayne, Indiana, replaced the previously-opened loan production office. The new Northtowne banking center, located in Defiance, Ohio, opened on January 16, 2007 and replaced an outdated office building that will be sold. * RDSI, Rurban's data and item processing subsidiary, reported an excellent quarter. Revenue was $5.2 million, up 41.7 percent from last year first quarter and net income was $690,000, up $142,000 or 25.9 percent. Results reflect organic growth, as well as the impact of the September 2006 acquisition of Diverse Computer Marketers, a subsidiary of RDSI.
Kenneth A. Joyce, President and Chief Executive Officer, commented, "This quarter marks the final step in our merger process. The reduction in our expenses as a result of the merger should begin to position us to more efficiently operate in this difficult banking environment.
"Our operations are streamlined, integrated and fully-staffed by managers that are focused on growth and profitability. Asset quality will always remain a priority, but it no longer occupies a predominant portion of our focus. More importantly for investors, we are improving our transparency, with two distinct business segments, banking and data and item processing."
CONSOLIDATED OPERATIONS
--------------------------------------------------------------------- Earnings: (Three months ended) Mar. 2007 Dec. 2006 Mar. 2006 --------------------------------------------------------------------- (Dollars in thousands except per share data) --------------------------------------------------------------------- Diluted EPS $0.14 $0.14 $0.10 Net interest income $3,593 $3,584 $3,864 Provision (credit) for loan losses 93 (159) 246 Non-interest income 6,739 7,576 5,008 Non-interest expense 9,300 10,359 7,950 Net income (loss) $702 $710 $523 ---------------------------------------------------------------------
Total revenue, consisting of net interest income plus non-interest income, was $10.3 million for the first quarter of 2007, compared with $8.9 million for the prior-year first quarter, an increase of $1.5 million, or 16.5 percent. Net interest income was $3.6 million, a decrease of $271,000 or 7.0 percent from the 2006 first quarter, and essentially unchanged from the fourth quarter of 2006. Year over year results reflect 2.1 percent growth in average earning assets, combined with a 33 basis point decline in net interest margin. The linked quarter comparison reflects a 3.7 percent decline in average earning assets offset by a twelve basis point improvement in the net interest margin. Mr. Joyce added, "While margins are still declining for the majority of banks in our market, we improved our margin by 12 basis points, reflecting the success of the balance sheet restructuring that we completed last quarter. With banking margins shrinking over the past ten years, we feel that opportunities exist to increase our non-interest income. We will continue our focus on profitable loan growth, fee income opportunities, margin improvement, and operating efficiencies, all of which should enable Rurban to continue to make earnings progress."
Non-interest income, largely derived from RDSI, has become increasingly more important as a contributor to net income growth. Non-interest income currently accounts for 65.2 percent of total revenue compared with 56.4 percent for the year-ago quarter. Rurban reported $1.7 million or 34.6 percent growth in non-interest income this quarter, increasing to $6.7 million from $5.0 million a year earlier. Compared with the previous quarter, however, non-interest income declined $837,000 or 11.1 percent, largely from one-time revenue items totaling $1.2 million in the fourth quarter of 2006. Excluding these items, non-interest income increased 4.8 percent above fourth quarter (19.2 percent annualized).
The provision for loan losses was $93,000 compared with $246,000 taken in the first quarter 2006. Net charge-offs were minimal at $41,000 during the quarter.
Non-interest expense was $9.3 million for the first quarter of 2007, up $1.4 million or 17.3 percent from the year-earlier quarter. Included in the first quarter 2007 operating results are $1.0 million of DCM operating expense. The acquisition of DCM took place in September 2006, so there were no corresponding DCM expenses in the first quarter, 2006. First quarter 2007 expenses also included $95,000 of one-time merger-related expense. Excluding the DCM operating and one-time merger-related expenses, non-interest expense increased $255,000 or 3.2% to $8.2 million for the first quarter of 2007 most of which was expense increases at RDSI.
Compared with the linked quarter, non-interest expense in the 2007 first quarter was lower by $1.1 million, or 10.2 percent. Reductions in Compensation (Severance payments), Benefits (healthcare), Professional fees (litigation), and FHLB prepayment penalties were all contributors to the quarter-over-quarter decrease. Consolidation of banking activities resulted in the elimination of approximately 25 full-time equivalent positions; greater savings should be forthcoming in future quarters since the reductions occurred late in the first quarter.
Rurban continues to be very well-capitalized. Stockholders' equity at March 31, 2007 was $57.7 million, equivalent to 10.5 percent of total assets; on a tangible basis, the ratio was 7.0 percent. The total risk-based capital ratio was 15.9 percent, well in excess of the "well-capitalized" regulatory threshold of ten percent.
THE STATE BANK AND TRUST COMPANY
The newly consolidated State Bank and Trust Company reported net income of $707,000 for the quarter, compared with $534,000 for the prior-year quarter, an increase of $173,000 or 32.4 percent. Revenue for the Bank (net interest income plus non-interest income) was $6.5 million for the current quarter, a decline of $392,000, or 5.7 percent, from the year-earlier level of $6.9 million. This decline in revenue was offset by a $522,000 or 8.7 percent reduction in non-interest expenses. Mortgage banking continues to increase as loan servicing fees increased 25% for the first quarter of 2007 compared to first quarter 2006. The $93,000 in loan loss provision taken this quarter is a $153,000 reduction compared to the previous year quarter this also contributed to the Bank's improvement in earnings growth.
Year-over-year, average assets increased $13.0 million, or 2.5 percent. Loan growth over the past twelve months was approximately $36 million, or 10.5 percent, reaching $373.3 million at March 31, 2007; this growth was entirely organic. Nearly 62 percent of State Bank's loan portfolio is commercial, and virtually all of the Bank's growth was derived from this sector. Loan growth during the first quarter slowed, both from competitive factors and from the priority given to merger activities this past quarter. As of March 31, 2007, loans were $3.2 million higher than year-end, with commercial loan growth leading the way.
Mr. Joyce commented, "We anticipate improved net income from banking through greater savings from our streamlined organization and higher revenue from the new, higher growth markets we recently entered."
ASSET QUALITY
-------------------------------------------------------------------- Asset Quality Mar. 2007 Dec. 2006 Mar. 2006 -------------------------------------------------------------------- (dollars in thousands) -------------------------------------------------------------------- Net charge-offs / (Recoveries) $41 $645 $597 -------------------------------------------------------------------- Net charge-offs (Ann.) / Avg. loans 0.04% 0.70% 0.72% -------------------------------------------------------------------- Allowance for loan loss $3,769 $3,717 $4,349 -------------------------------------------------------------------- Allowance for loan loss / Loans 1.01% 1.00% 1.29% -------------------------------------------------------------------- Non-performing assets $4,112 $3,910 $8,833 -------------------------------------------------------------------- NPA / Total assets 0.75% 0.70% 1.64% --------------------------------------------------------------------
Non-performing assets (loans, OREO & OAO) were $4.1 million, or 0.75 percent of total assets on March 31, 2007, a decline of $4.7 million from twelve months ago and a nominal increase from the linked quarter. Net charge-offs for first quarter were a nominal $41,000, compared with the $597,000 in charge-offs taken in last year's first quarter. The loan loss reserve now stands at 1.01 percent of period-end loans.
RURBANC DATA SERVICES, INC. (RDSI)
"We continue to see a solid pipeline of potential customers for both our data processing and item processing businesses as we enter 2007. RDSI signed three new client banks for data and item processing, with one bank converted in the first quarter. DCM's clients are rapidly moving to remote capture and becoming Check 21 compliant," stated Ken Joyce. Revenue for the quarter was $5.2 million, up $1.6 million or 41.7 percent above the $3.6 million reported for the first quarter of 2006. Of this increase, $1.1 million resulted from DCM, which RDSI acquired in September 2006, and the remainder was derived from new RDSI customers and new products purchased by RDSI's customer base. RDSI now services over 100 community banks, accounting for 92.2% of Rurban's fee growth over the past twelve months. Earnings for the first quarter were $690,000 compared to $548,000 for the year-ago quarter, up $142,000 or 25.9%.
About Rurban Financial Corp.
Rurban Financial Corp. is a publicly-held financial services holding company based in Defiance, Ohio. Rurban's wholly-owned subsidiaries are The State Bank and Trust Company including Reliance Financial Services, Rurbanc Data Services, Inc. (RDSI), and DCM. The community bank offers financial services through its 18 branches in Allen, Defiance, Fulton, Lucas, Paulding and Wood Counties, Ohio and Allen County, Indiana. Reliance Financial Services offers a diversified array of trust and financial services to customers throughout the Midwest. RDSI and DCM provide data and item processing services to community banks in Arkansas, Florida, Illinois, Indiana, Michigan, Missouri, Ohio and Wisconsin. Rurban's common stock is quoted on the Nasdaq Global Market under the symbol RBNF. The Company currently has 10,000,000 shares of stock authorized and 5,027,433 shares outstanding. The Company's website is http://www.rurbanfinancial.net.
Forward-Looking Statements
Certain statements within this document, which are not statements of historical fact, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties and actual results may differ materially from those predicted by the forward-looking statements. These risks and uncertainties include, but are not limited to, risks and uncertainties inherent in the national and regional banking, insurance and mortgage industries, competitive factors specific to markets in which Rurban and its subsidiaries operate, future interest rate levels, legislative and regulatory actions, capital market conditions, general economic conditions, geopolitical events, the loss of key personnel and other factors.
Forward-looking statements speak only as of the date on which they are made, and Rurban undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made. All subsequent written and oral forward-looking statements attributable to Rurban or any person acting on our behalf are qualified by these cautionary statements.
RURBAN FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
March 31, 2007 and December 31, 2006
March December March
2007 2006 2006
------------ ------------ ------------
(Unaudited) (Unaudited)
ASSETS
Cash and due from
banks $ 10,627,291 $ 13,381,791 $ 12,289,142
Federal funds sold 6,500,000 9,100,000 4,228,000
------------ ------------ ------------
Cash and cash
equivalents 17,127,291 22,481,791 16,517,142
Interest-earning
deposits in other
financial
institutions 150,000 150,000 150,000
Available-for-sale
securities 97,148,409 102,462,075 130,124,716
Loans held for sale 110,697 390,100 40,000
Loans, net of
unearned income 373,293,814 370,101,809 337,729,277
Allowance for loan
losses (3,768,814) (3,717,377) (4,348,541)
Premises and
equipment, net 15,912,493 15,449,774 14,017,625
Purchased software 4,482,113 4,618,691 4,498,803
Federal Reserve and
Federal Home Loan
Bank Stock 4,040,700 3,993,450 3,649,400
Foreclosed assets
held for sale, net 9,400 82,397 2,383,852
Accrued interest
receivable 2,820,915 3,129,774 2,766,999
Goodwill 13,690,092 13,674,058 8,805,347
Core deposits and
other intangibles 5,683,598 5,858,982 3,625,573
Cash value of life
insurance 10,861,017 10,771,843 10,528,528
Other assets 7,323,829 6,559,886 7,712,506
------------ ------------ ------------
Total assets $548,885,554 $556,007,253 $538,201,227
============ ============ ============
LIABILITIES AND
SHAREHOLDERS' EQUITY
Liabilities
Deposits
Demand $ 43,759,627 $ 46,565,554 $ 45,380,636
Savings, interest
checking and
money market 136,754,887 130,267,333 129,111,866
Time 232,078,426 237,722,558 224,033,626
------------ ------------ ------------
Total deposits 412,592,940 414,555,445 398,526,128
Notes payable 2,515,911 2,589,207 --
Advances from
Federal Home Loan
Bank 17,500,000 21,000,000 43,500,000
Repurchase
Agreements 30,827,195 32,270,900 15,403,500
Trust preferred
securities 20,620,000 20,620,000 20,620,000
Accrued interest
payable 2,233,625 2,224,413 1,486,845
Other liabilities 4,884,579 5,792,135 4,612,822
------------ ------------ ------------
Total
liabilities 491,174,250 499,052,100 484,149,295
Shareholders' Equity
Common stock, $2.50
stated value;
authorized
10,000,000 shares;
5,027,433 shares
outstanding 12,568,583 12,568,583 12,568,583
Additional paid-in
capital 14,872,424 14,859,165 14,841,050
Retained earnings 30,808,105 30,407,298 28,973,991
Accumulated other
comprehensive loss (537,808) (879,893) (2,331,692)
------------ ------------ ------------
Total
shareholders'
equity 57,711,304 56,955,153 54,051,932
------------ ------------ ------------
Total liabilities
and shareholders'
equity $548,885,554 $556,007,253 $538,201,227
============ ============ ============
RURBAN FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
For The First Quarter Ended March 31, 2007 and Fourth Quarter Ended
December 31, 2006
Increase/
First Quarter Fourth Quarter (Decrease)
2007 2006 $
------------ ------------ ------------
Interest income
Loans
Taxable $ 6,676,813 $ 6,720,398 $ (43,585)
Tax-exempt 17,293 17,638 (345)
Securities
Taxable 1,091,197 1,258,234 (167,037)
Tax-exempt 153,057 149,172 3,885
Other 78,468 77,726 742
------------ ------------ ------------
Total interest
income 8,016,828 8,223,168 (206,340)
Interest expense
Deposits 3,333,730 3,326,774 6,956
Other borrowings 51,072 51,910 (838)
Repurchase
Agreements 343,849 382,717 (38,868)
Federal Home Loan
Bank advances 249,587 421,970 (172,383)
Trust preferred
securities 445,314 455,408 (10,094)
------------ ------------ ------------
Total interest
expense 4,423,552 4,638,779 (215,227)
------------ ------------ ------------
Net interest income 3,593,276 3,584,389 8,887
Provision for loan
losses 92,640 (159,483) 252,123
------------ ------------ ------------
Net interest income
after provision for
loan losses 3,500,636 3,743,872 (243,236)
Non-interest income
Data service fees 4,834,136 4,698,386 135,750
Trust fees 826,382 830,898 (4,516)
Customer service
fees 528,424 525,881 2,543
Net gain on sales
of loans 54,279 833,315 (779,036)
Net realized gains
(losses) on sales
of available-for-
sale securities -- (494,885) 494,885
Investment
securities
recoveries -- 889,454 (889,454)
Loan servicing fees 108,706 118,476 (9,770)
Gain (loss) on sale
of assets 35,967 8,852 27,115
Other income 350,848 165,637 185,211
------------ ------------ ------------
Total
non-interest
income 6,738,742 7,576,014 (837,272)
Non-interest expense
Salaries and
employee benefits 4,396,787 4,677,237 (280,450)
Net occupancy
expense 527,133 506,142 20,991
Equipment expense 1,605,873 1,681,747 (75,874)
Data processing fees 156,181 159,604 (3,423)
Professional fees 677,391 870,464 (193,073)
Marketing expense 155,685 132,787 22,898
Printing and office
supplies 198,092 165,990 32,102
Telephone and
communication 445,204 427,554 17,650
Postage and
delivery expense 392,261 337,993 54,268
State, local and
other taxes 199,741 161,523 38,218
Employee expense 255,069 233,491 21,578
FHLB prepaymemt
penalties -- 214,886 (214,886)
Other expenses 290,836 789,587 (498,751)
------------ ------------ ------------
Total
non-interest
expense 9,300,253 10,359,005 (1,058,752)
------------ ------------ ------------
Income before income
tax expense 939,125 960,881 (21,756)
Income tax expense 236,672 250,448 (13,776)
------------ ------------ ------------
Net income $ 702,453 $ 710,433 $ (7,980)
============ ============ ============
Earnings per common
share:
Basic $ 0.14 $ 0.14 $ (0.00)
============ ============ ============
Diluted $ 0.14 $ 0.14 $ (0.00)
============ ============ ============
Average diluted
shares outstanding 5,027,613 5,027,440
============ ============
RURBAN FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
For The Three Months Ended March 31, 2007 and 2006
Increase/
Three Months Three Months (Decrease)
2007 2006 $
------------ ------------ ------------
Interest income
Loans
Taxable $ 6,676,813 $ 5,554,154 $ 1,122,659
Tax-exempt 17,293 12,235 5,058
Securities
Taxable 1,091,197 1,312,600 (221,403)
Tax-exempt 153,057 131,833 21,224
Other 78,468 36,267 42,201
------------ ------------ ------------
Total interest
income 8,016,828 7,047,089 969,739
Interest expense
Deposits 3,333,730 2,121,214 1,212,516
Other borrowings 51,072 26,299 24,773
Retail Repurchase
Agreements 343,849 124,277 219,572
Federal Home Loan
Bank advances 249,587 482,821 (233,234)
Trust preferred
securities 445,314 428,422 16,892
------------ ------------ ------------
Total interest
expense 4,423,552 3,183,033 1,240,519
------------ ------------ ------------
Net interest income 3,593,276 3,864,056 (270,780)
Provision for loan
losses 92,640 246,000 (153,360)
------------ ------------ ------------
Net interest income
after provision for
loan losses 3,500,636 3,618,056 (117,420)
Non-interest income
Data service fees 4,834,136 3,241,134 1,593,002
Trust fees 826,382 815,451 10,931
Customer service
fees 528,424 550,067 (21,643)
Net gain on sales
of loans 54,279 61,046 (6,767)
Loan servicing fees 108,706 86,694 22,012
Gain (loss) on sale
of assets 35,967 (19,126) 55,093
Other income 350,848 273,034 77,814
------------ ------------ ------------
Total
non-interest
income 6,738,742 5,008,300 1,730,442
Non-interest expense
Salaries and
employee benefits 4,396,787 3,857,734 539,053
Net occupancy
expense 527,133 439,948 87,185
Equipment expense 1,605,873 1,375,828 230,045
Data processing fees 156,181 136,590 19,591
Professional fees 677,391 519,365 158,026
Marketing expense 155,685 126,448 29,237
Printing and office
supplies 198,092 152,984 45,108
Telephone and
communication 445,204 402,367 42,837
Postage and
delivery expense 392,261 131,994 260,267
State, local and
other taxes 199,741 133,858 65,883
Employee expense 255,069 249,388 5,681
Other expenses 290,836 423,527 (132,691)
------------ ------------ ------------
Total
non-interest
expense 9,300,253 7,950,031 1,350,222
------------ ------------ ------------
Income before income
tax expense 939,125 676,325 262,800
Income tax expense 236,672 153,780 82,892
------------ ------------ ------------
Net income $ 702,453 $ 522,545 $ 179,908
============ ============ ============
Earnings per common
share:
Basic $ 0.14 $ 0.10 $ 0.04
============ ============ ============
Diluted $ 0.14 $ 0.10 $ 0.04
============ ============ ============
Average diluted
shares outstanding 5,027,613 5,028,183
============ ============
Rurban Financial Corp.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
------------------------- -------- -------- --------
(dollars in thousands 1st Qtr 4th Qtr 1st Qtr
except per share data) 2007 2006 2006
------------------------- -------- -------- --------
EARNINGS
Net interest income $ 3,593 $ 3,584 $ 3,864
Provision for loan loss $ 93 $ (159) $ 246
Non-interest income $ 6,739 $ 7,576 $ 5,008
Revenue (net interest income plus
non-interest income) $ 10,332 $ 11,160 $ 8,872
Non-interest expense $ 9,300 $ 10,359 $ 7,950
Net income (loss) $ 702 $ 710 $ 523
PER SHARE DATA
Basic earnings per share $ 0.14 $ 0.14 $ 0.10
Diluted earnings per share $ 0.14 $ 0.14 $ 0.10
Book value per share $ 11.48 $ 11.33 $ 10.75
Tangible book value per share $ 7.69 $ 7.58 $ 8.28
Cash dividend per share $ 0.06 $ 0.06 $ 0.05
PERFORMANCE RATIOS
Return on average assets 0.51% 0.50% 0.39%
Return on average equity 4.91% 5.08% 3.86%
Net interest margin (tax equivalent) 3.04% 2.92% 3.37%
Non-interest expense / Average
assets 6.71% 7.27% 5.95%
Efficiency Ratio - bank (non-GAAP) 87.20% 94.85% 88.99%
MARKET DATA PER SHARE
Market value per share -- Period
end $ 11.84 $ 10.77 $ 12.42
Market as a % of book 1.03 0.95 1.16
Cash dividend yield 2.03% 2.23% 1.61%
Period-end common shares
outstanding (000) 5,027 5,027 5,027
Common stock market
capitalization ($000) $ 59,525 $ 54,145 $ 62,441
CAPITAL & LIQUIDITY
Equity to assets 10.5% 10.2% 10.0%
Period-end tangible equity to assets 7.0% 6.9% 7.7%
Tier 1 risk-based capital ratio 14.8% 14.9% 17.3%
Total risk-based capital ratio 15.9% 16.0% 18.9%
ASSET QUALITY
Net charge-offs / (Recoveries) $ 41 $ 645 $ 597
Net loan charge-offs (Ann.) /
Average loans 0.04% 0.70% 0.72%
Non-performing loans $ 4,103 $ 3,828 $ 6,031
OREO / OAOs $ 9 $ 82 $ 2,802
Non-performing assets $ 4,112 $ 3,910 $ 8,833
Non-performing assets / Total
assets 0.75% 0.70% 1.64%
Allowance for loan losses / Total
loans 1.01% 1.00% 1.29%
Allowance for loan losses /
Non-performing Assets 91.6% 95.1% 49.2%
END OF PERIOD BALANCES
Total loans, net of unearned
income $373,294 $370,102 $337,729
Allowance for loan loss $ 3,769 $ 3,717 $ 4,349
Total assets $548,886 $556,007 $538,201
Deposits $412,593 $414,555 $398,526
Stockholders' equity $ 57,711 $ 56,955 $ 54,052
Full-time equivalent employees 294 317 275
AVERAGE BALANCES
Loans $371,724 $370,687 $331,711
Total earning assets $484,110 $502,530 $474,087
Total assets $554,631 $569,807 $534,371
Deposits $415,887 $415,576 $392,323
Stockholders' equity $ 57,192 $ 55,963 $ 54,251
Rurban Financial Corp.
Segment Reporting
Three Months Ended March 31, 2007
----------------------------------------------
RFCBC
State Bank (Loan Total Data
and Trust Workout Banking Processing
Company)
----------------------------------------------
Income Statement
Measures
----------------
Interest Income $ 8,070 $ 1 $ 8,071 $ --
Interest Expense 3,940 -- 3,940 94
Net Interest Income 4,130 1 4,131 (94)
Provision For Loan
Loss 100 (7) 93 --
Non-interest Income 2,416 -- 2,416 5,249
Non-interest Expense 5,495 214 5,709 4,109
Net Income Before
Taxes 951 (206) 745 1,046
Income Taxes 244 (70) 174 356
Net Income YTD $ 707 $ (136) $ 571 $ 690
Performance Measures
--------------------
Average Assets - YTD $534,629 $ 1,914 $536,543 $ 20,217
ROAA 0.53% -- 0.43% 13.65%
Average Equity - YTD $ 54,828 $ 1,502 $ 56,330 $ 13,378
ROAE 5.16% -- 4.05% 20.63%
Efficiency Ratio - % 83.94% -- 87.20% 79.71%
Average Loans - YTD $373,586 $ 614 $374,200 $ --
Average Deposits -
YTD $424,355 $ -- $424,355 $ --
----------------------------------
Parent Rurban
Company Elimination Financial
and Other Entries Corp.
----------------------------------
Income Statement
Measures
----------------
Interest Income $ 1 $ (55) $ 8,017
Interest Expense 445 (55) 4,424
Net Interest Income (444) -- 3,593
Provision For Loan
Loss -- 93
Non-interest Income 328 (1,254) 6,739
Non-interest Expense 736 (1,254) 9,300
Net Income Before
Taxes (852) -- 939
Income Taxes (293) -- 237
Net Income YTD $ (559) $ -- $ 702
Performance Measures
--------------------
Average Assets - YTD $ 79,251 $(81,380) $554,631
ROAA -- -- 0.51%
Average Equity - YTD $ 57,192 $(69,708) $ 57,192
ROAE -- -- 4.91%
Efficiency Ratio - % -- -- 90.01%
Average Loans - YTD $ -- $ (2,476) $371,724
Average Deposits -
YTD $ -- $ (8,468) $415,887
Rurban Financial Corp.
Proforma Performance Measurement
Quarterly Comparison - First Quarter 2007
--------------------------------------------
RFCBC
State Bank (Loan Banking
and Trust Workout Related RDSI
Company) Entities
--------------------------------------------
Average Assets
--------------
1Q07 $534,629 $ 1,914 $536,543 $ 20,217
4Q06 $549,777 $ 2,178 $551,955 $ 19,695
3Q06 $549,931 $ 2,451 $552,382 $ 14,442
2Q06 $532,027 $ 5,477 $537,504 $ 13,368
1Q06 $521,586 $ 6,675 $528,261 $ 11,579
1st Quarter
Comparison $ 13,043 $ (4,761) $ 8,282 $ 8,638
Revenue
-------
1Q07 $ 6,546 $ 1 $ 6,547 $ 5,155
4Q06 $ 7,233 $ 124 $ 7,357 $ 4,944
3Q06 $ 7,207 $ 3 $ 7,210 $ 4,085
2Q06 $ 6,917 $ 85 $ 7,002 $ 3,632
1Q06 $ 6,938 $ 93 $ 7,031 $ 3,637
1st Quarter
Comparison $ (392) $ (92) $ (484) $ 1,518
Non-interest Expenses
---------------------
1Q07 $ 5,495 $ 215 $ 5,710 $ 4,109
4Q06 $ 6,635 $ 278 $ 6,913 $ 4,026
3Q06 $ 5,784 $ 161 $ 5,945 $ 3,375
2Q06 $ 5,573 $ 307 $ 5,880 $ 2,949
1Q06 $ 6,017 $ 174 $ 6,191 $ 2,807
1st Quarter
Comparison $ (522) $ 41 $ (481) $ 1,302
Net Income
----------
1Q07 $ 707 $ (136) $ 571 $ 690
4Q06 $ 569 $ (89) $ 480 $ 606
3Q06 $ 872 $ (82) $ 790 $ 478
2Q06 $ 888 $ (109) $ 779 $ 451
1Q06 $ 534 $ (54) $ 480 $ 548
1st Quarter
Comparison $ 173 $ (82) $ 91 $ 142
Efficiency Ratio
----------------
1Q07 83.95% 87.22% 79.71%
4Q06 91.73% 93.96% 81.43%
3Q06 80.26% 82.45% 82.62%
2Q06 80.57% 83.98% 81.19%
1Q06 86.73% 88.05% 77.18%
1st Quarter
Comparison (2.78%) (0.84%) 2.53%
NPA/Total Assets
----------------
1Q07 0.66%
4Q06 0.61%
3Q06 0.90%
2Q06 0.86%
1Q06 0.88%
1st Quarter
Comparison (0.22%)
ROAA
----
1Q07 0.53% 0.43% 13.65%
4Q06 0.41% 0.35% 12.31%
3Q06 0.63% 0.57% 13.24%
2Q06 0.67% 0.58% 13.49%
1Q06 0.41% 0.36% 18.93%
1st Quarter
Comparison 0.12% 0.06% (5.28%)
ROAE
----
1Q07 5.16% 4.05% 20.63%
4Q06 4.20% 3.43% 19.06%
3Q06 6.72% 5.83% 21.26%
2Q06 6.95% 5.52% 21.38%
1Q06 3.97% 3.16% 31.59%
1st Quarter
Comparison 1.19% 0.90% (10.96%)
Average Equity
--------------
1Q07 $ 54,828 $ 1,502 $ 56,330 $ 13,378
4Q06 $ 54,249 $ 1,714 $ 55,963 $ 12,721
3Q06 $ 51,917 $ 2,261 $ 54,178 $ 8,995
2Q06 $ 51,093 $ 5,393 $ 56,486 $ 8,437
1Q06 $ 53,824 $ 7,001 $ 60,825 $ 6,938
1st Quarter
Comparison $ 1,004 $ (5,499) $ (4,495) $ 6,440
----------------------------------
Parent Intersegment Rurban
Company Elimination Financial
and Other Entries Corp.
----------------------------------
Average Assets
--------------
1Q07 $ 79,251 $(81,380) $554,631
4Q06 $ 78,234 $(80,077) $569,807
3Q06 $ 75,666 $(89,023) $553,465
2Q06 $ 74,679 $(80,477) $545,074
1Q06 $ 78,705 $(84,175) $534,370
1st Quarter
Comparison $ 546 $ 20,261
Revenue
-------
1Q07 $ (116) $ (1,254) $ 10,332
4Q06 $ 247 $ (1,388) $ 11,160
3Q06 $ (219) $ (1,417) $ 9,659
2Q06 $ (163) $ (1,373) $ 9,098
1Q06 $ (129) $ (1,667) $ 8,872
1st Quarter
Comparison $ 13 $ 1,460
Non-interest Expenses
---------------------
1Q07 $ 736 $ (1,254) $ 9,301
4Q06 $ 822 $ (1,402) $ 10,359
3Q06 $ 612 $ (1,417) $ 8,515
2Q06 $ 625 $ (1,374) $ 8,080
1Q06 $ 622 $ (1,670) $ 7,950
1st Quarter
Comparison $ 114 $ 1,351
Net Income
----------
1Q07 $ (559) $ 702
4Q06 $ (376) $ 710
3Q06 $ (454) $ 814
2Q06 $ (516) $ 714
1Q06 $ (505) $ 523
1st Quarter
Comparison $ (54) $ 179
Efficiency Ratio
----------------
1Q07 90.04%
4Q06 92.82%
3Q06 88.16%
2Q06 88.81%
1Q06 89.61%
1st Quarter
Comparison 0.43%
NPA/Total Assets
----------------
1Q07 0.75%
4Q06 0.70%
3Q06 1.07%
2Q06 1.07%
1Q06 1.64%
1st Quarter
Comparison (0.89%)
ROAA
----
1Q07 0.51%
4Q06 0.50%
3Q06 0.59%
2Q06 0.52%
1Q06 0.39%
1st Quarter
Comparison 0.11%
ROAE
----
1Q07 4.91%
4Q06 5.08%
3Q06 5.95%
2Q06 5.28%
1Q06 3.86%
1st Quarter
Comparison 1.05%
Average Equity
--------------
1Q07 $ 57,192 $(69,708) $ 57,192
4Q06 $ 55,963 $(68,684) $ 55,963
3Q06 $ 54,702 $(63,173) $ 54,702
2Q06 $ 54,039 $(64,923) $ 54,039
1Q06 $ 54,251 $(67,763) $ 54,251
1st Quarter
Comparison $ 2,941 $ 2,941