DEFIANCE, Ohio, Jan. 23, 2008 (PRIME NEWSWIRE) -- Rurban Financial Corp. (Nasdaq:RBNF), a leading provider of full-service community banking, investment management, trust services and bank data processing, reported 2007 earnings of $3.26 million, or $0.65 per diluted share, an increase of approximately 18% above the $2.76 million, or $0.55 per diluted share reported in 2006.
Fourth quarter 2007 earnings were $906,000, or $0.18 per diluted share, compared with fourth quarter 2006 earnings of $710,000, or $0.14 per diluted share, an increase of approximately 28%; compared with the third quarter of 2007, net income and earnings per share rose 4.9% and 5.9%, respectively.
Highlights of the year and fourth quarter 2007 include:
* During the first quarter of 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. This action has allowed efficiencies leading to continuing core profit improvement at The State Bank and Trust Company. * State Bank continues to expand its reach to higher-growth markets. In January 2007, the Fort Wayne, Indiana loan production office was converted to a full-service branch. State Bank continued its entrance to growth markets by opening a loan production office in Columbus, Ohio in December, 2007. * Loans increased 5.2%, or $19.2 million, over the course of the year, funded largely by cash and the liquidation of investment securities. As a result of this restructure, assets grew only 1% year-over-year to $561.2 million. * RDSI and DCM, Rurban's data and item processing subsidiaries, reported another record year. The total number of banks being process increased by 5 to 117. Revenue increased to $20.6 million, a $4.3 million, or 27% increase, over the previous year's results. Net income was a record $2.5 million for the year. * On April 12, 2007, Rurban initiated a stock repurchase program, authorizing the repurchase of up to 250,000 shares, or approximately 5%, of the Company's outstanding shares. As of the end of the fourth quarter, Rurban repurchased 48,500 shares at an average cost of $12.58. * Rurban increased its dividend to shareholders from $0.21 per share during 2006 to $0.26 per share in 2007.
"We are very encouraged with our growth in core earnings for both segments of our business, especially considering how difficult the banking environment has been for the past twelve months," commented Mr. Joyce. "There are numerous factors that contributed to this growth; however, in the banking side of our business, the most significant determinants were loan growth, maintenance of our interest rate margin following a dip in mid-year, and expense control. We are also continuing our market expansion with the addition of the Columbus, Ohio market. We are very encouraged with the turnaround results from our banking business, and we are cautiously optimistic that this turnaround will continue, but banking is not immune to the economy."
Joyce continued, "RDSI maintained its growth pattern reaching higher levels of revenue, net income, and number of client banks processed. The addition of DCM in September of 2006 also aided RDSI in attaining another record year. RDSI is now providing data and item processing in ten states to 117 client banks. We believe that 2008 provides RDSI and DCM the opportunity to continue on its established growth pattern."
YTD RESULTS
-----------
Year Ended
Earnings: December 31
(Dollars in thousands except per share data) 2007 2006
Net interest income $14,787 $15,034
Non-interest income 26,861 23,755
Total revenue 41,648 38,789
Provision for loan losses 521 178
Non-interest expense 36,637 34,904
Net income 3,257 2,760
Diluted EPS $ 0.65 $ 0.55
Net interest income was $14.8 million for 2007 compared to $15.0 million for 2006, a decrease of 1.6%, which primarily resulted from margin compression. Average earning assets also decreased to $488.3 million in 2007 compared to $490.6 million in 2006 as a result of repositioning the balance sheet to improve the net interest margin. Over the past 12 months, the company was successful in converting lower yielding investments into a funding source for loan growth and converted higher cost deposits to core deposits and increased wholesale funding due to favorable rates.
Non-interest income was $26.9 million for 2007 compared to $23.8 million for 2006, representing a $3.1 million, or 13.1% increase year-over-year. Non-interest income in 2006 was increased a net $1.1 million from the one-time impact of a $495,000 charge taken to restructure the bond portfolio, an $889,000 recovery of losses previously recorded on WorldCom bonds, and a gain associated with the sale of the credit card portfolio of $740,000. Excluding these 2006 one-time items, non-interest income increased $4.2 million, or 18.7%, year-over-year. This increase was driven by a $4.4 million, or 29%, increase in data service fees, which were primarily attributable to the DCM acquisition.
Non-interest expense increased $1.7 million, or 4.9%, primarily from the additional expenses incurred within the Data Processing Group relating to the incorporation of full-year expenses from the DCM acquisition, which occurred in September of 2006. Data Processing Group expenses were $16.9 million in 2007 compared to $13.1 million in 2006. This $3.7 million increase in RDSI was partially offset by a $1.9 million improvement within our Banking Group. This non-interest expense reduction was primarily the result of reductions in professional fees associated with loan workouts and the reduction of 42 full-time positions within the company, of which 23 were part of the Banking Group. This significantly reduced compensation and employee benefits expense. This reduction was also aided by approximately $500,000 of one-time expenses taken in the fourth quarter of 2006 as detailed below.
FOURTH QUARTER RESULTS
----------------------
Fourth Quarter Ended
Earnings: December 31
(Dollars in thousands except per share data) 2007 2006
Net interest income $ 3,783 $ 3,584
Non-interest income 6,832 7,576
Revenue 10,615 11,160
Provision (credit) for loan losses 143 (159)
Non-interest expense 9,164 10,359
Net income (loss) 906 710
Diluted EPS $ 0.18 $ 0.14
Net interest income increased to $3.8 million for the quarter compared to $3.6 million for the fourth quarter of 2006. This 5.5% increase is due to an 18 basis point improvement in the banking segment's net interest margin. This improvement in net interest margin was attributable to the balance sheet restructuring completed at year-end 2006 combined with aggressive pricing management for both loans and deposits.
Non-interest income totaled $6.8 million for 2007 and $7.6 million for 2006. Excluding the fourth quarter 2006 one-time net gain of $1.1 million discussed above, non-interest income was $6.4 million for 2006, up $390,000, or 6.1%. The data service fees contributed $216,000 of the $390,000 fee increase. In addition, trust fees and deposit fees increased 5.1% and 13%, respectively.
Non-interest expense for the year-over-year fourth quarter decreased $1.2 million, or 11.5%. As previously mentioned, the company eliminated 42 full-time positions across all business segments, which decreased fourth quarter 2007 compensation, benefits and other employee related expenses by $543,000, or 11.6%, compared to fourth quarter 2006. The remaining reductions over 2006 resulted from lower professional fees of $284,000 from litigation costs. The fourth quarter of 2006 also contained one-time expenses of approximately $500,000, which included $215,000 for FHLB prepayment penalties and $283,000 for merger related charges.
CONSOLIDATED BALANCE SHEET
Total assets at December 31, 2007 totaled $561.2 million showing a nominal increase over $556.0 million at December 31, 2006. At December 31, 2007, gross loans totaled $389.3 million, deposits totaled $406.0 million and shareholders equity was $59.3 million. At December 31, 2006 loans, deposits and equity were $370.1 million, $414.6 million, and $57.0 million, respectively.
BANK OPERATING RESULTS
Mr. Joyce commented, "We repositioned our balance sheet and reduced expenses dramatically within our Banking Group during 2007. The result was an improvement of 26 basis points to 61 basis points Return on Assets for the fourth quarter of 2007, compared to the fourth quarter of 2006. This improvement in "run rate" of ROA was accomplished despite the substantial one-time favorable income items in the fourth quarter of 2006, as stated in our analysis above. We made several changes in structure and function in 2007 thereby improving our core earnings, including additional efficiencies on the bank side that were executed in the fourth quarter of 2007. We will be working to continue growing our loan balances in 2008 while maintaining a tight control on expenses. We recognize that further improvement is necessary. We believe we have the right banking model in place, and we are beginning to execute that model very effectively."
Net income for the Banking Group was $2.9 million for 2007 compared with $1.9 million reported for the prior fiscal year. On a linked quarter basis, net income increased by $162,000, or 24%.
Total loans were $390.5 million at December 31, 2007, up $18.3 million, or 4.9%. Commercial real estate was the only category that had significant growth during 2007, up $31.8 million, or 34.7%, to $123.5 million. This growth was partially offset by a decline of $4.9 million in C&I and $8.1 million in residential mortgages. Commercial loans now account for 64.5% of total loans compared with 60.0% at the prior year-end. As part of a continuing initiative to improve profitability, $9.8 million of lower-yielding securities were liquidated during the year to fund loan growth.
Total deposits at December 31, 2007 were $406.0 million, down $8.5 million, or 2.1%, from the December 31, 2006 year-end. The decrease during the year resulted from Time Deposits decreasing $14.2 million and Demand Deposits decreasing $5.0 million. These decreases were offset by a $10.7 million increase in NOW accounts, savings accounts, and money market accounts. The High Performance Checking account promotion the company started in April of 2007 generated $4.5 million in new retail checking account balances at a funding cost of 1.20%. The decrease in Demand Deposits was due to customers shifting balances into higher-yielding products. The decrease in Time Deposits was due to planned runoff of higher-costing municipal deposits, which was part of the balance sheet restructure.
ASSET QUALITY
Provision for Loan Losses of $521,000 was taken in 2007 compared to $178,000 taken for 2006. The 2006 provision was reduced by the release of $140,000 provision associated with the credit card portfolio sold at the end of 2006. The fourth quarter loan loss provision of $142,000 represents a normal accrual for the company given our loan growth and net charge-offs of $89,000, or .09%, of average loans.
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Quarter Ended YTD
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Asset Quality Dec., Sept., Dec.,
(Dollars in Thousands) 2007 2007 2006 2007 2006
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Net charge-offs $ 89 $ 28 $ 645 $ 248 $1,200
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Net charge-offs (Ann.) /
Avg. loans 0.09% 0.03% .70% .07% .33%
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Allowance for loan loss $3,990 $3,937 $3,717
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Allowance for loan loss /
Loans 1.03% 1.01% 1.00%
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Non-performing assets $6,162 $6,432 $3,910
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NPA / Total assets 1.10% 1.14% .70%
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Non-performing assets (loans + OREO + OAO) were $6.2 million, or 1.10 %, of total assets at December 31, 2007, a decrease of $270,000 from the linked quarter, and an increase of $2.3 million from a year-ago. This increase, which originated in the second quarter of 2007, is due to three commercial loan relationships that are being worked out with minimal, if any, expected loss.
RDSI AND DCM RESULTS
Revenue for the Data and Item Processing Group was $20.6 million, up $4.3 million, or 27.0%, over the $16.6 million reported for year-end 2006. DCM, acquired in September, 2006, accounted for $2.9 million of the $4.3 million in fee growth. RDSI continues growing its client banks, servicing 117 community banks at year-end 2007 compared to 112 at year-end 2006. RDSI has contracts signed for six additional new banks that will be converted by June, 2008.
Net Income for the 2007 fiscal year was $2.5 million compared to $1.9 million for 2006, up $586,000, or 31%. "We are very pleased with the growth we obtained in 2007 and we continue to see a solid pipeline of signed and potential customers for both our data processing and item processing services in 2008," said Mr. Joyce.
Mr. Joyce concluded, "We have seen in this past year a clear transition to improving core earnings in both the banking and data and item processing business segments. The improved run rates in both of these segments indicate continuing growth in 2008. We will be working hard to achieve the maximum growth and profitability for Rurban Financial Corp. and its shareholders."
ABOUT RURBAN FINANCIAL CORP.
Rurban Financial Corp. is a publicly-held financial services holding company based in Defiance, Ohio with assets of $561.2 million as of December 31, 2007. Rurban's wholly-owned subsidiaries are The State Bank and Trust Company, including Reliance Financial Services; Rurbanc Data Services, Inc. (RDSI); and DCM. The State Bank and Trust Company offers financial services through its 18 branches in Allen, Defiance, Franklin, Fulton, Lucas, Paulding and Wood Counties, Ohio and Allen County, Indiana. Reliance Financial Services, a division of the Bank, 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, Nebraska, Nevada, 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 4,978,933 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
December 31, 2007 and December 31, 2006
December December
2007 2006
------------ ------------
(Unaudited)
ASSETS
Cash and due from banks $ 15,183,627 $ 13,381,791
Federal funds sold 2,000,000 9,100,000
------------ ------------
Cash and cash equivalents 17,183,627 22,481,791
Interest-earning deposits in other
financial institutions -- 150,000
Available-for-sale securities 92,661,386 102,462,075
Loans held for sale 1,649,758 390,100
Loans, net of unearned income 389,268,744 370,101,809
Allowance for loan losses (3,990,455) (3,717,377)
Premises and equipment, net 15,143,201 15,449,774
Purchased software 4,268,116 4,618,691
Federal Reserve and Federal Home Loan
Bank Stock 4,021,200 3,993,450
Foreclosed assets held for sale, net 124,131 82,397
Accrued interest receivable 3,008,968 3,129,774
Goodwill 13,940,618 13,674,058
Core deposits and other intangibles 5,135,228 5,858,982
Cash value of life insurance 12,160,581 10,771,843
Other assets 6,638,895 6,559,886
------------ ------------
Total assets $561,213,998 $556,007,253
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Deposits
Demand $ 41,541,297 $ 46,565,554
Savings, interest checking and
money market 141,009,043 130,267,333
Time 223,480,842 237,722,558
------------ ------------
Total deposits 406,031,182 414,555,445
Notes payable 922,457 2,589,207
Advances from Federal Home Loan Bank 24,000,000 21,000,000
Repurchase Agreements 43,006,438 32,270,900
Trust preferred securities 20,620,000 20,620,000
Accrued interest payable 2,532,914 2,224,413
Other liabilities 4,775,773 5,792,135
------------ ------------
Total liabilities 501,888,764 499,052,100
Shareholders' Equity
Common stock 12,568,583 12,568,583
Additional paid-in capital 14,923,571 14,859,165
Retained earnings 32,361,106 30,407,298
Accumulated other comprehensive
income (loss) 82,235 (879,893)
Treasury stock (610,260) --
------------ ------------
Total shareholders' equity 59,325,234 56,955,153
------------ ------------
Total liabilities and shareholders'
equity $561,213,998 $556,007,253
============ ============
RURBAN FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
For The Twelve Months Ended December 31, 2007 and 2006
Increase/
Twelve Months Twelve Months (Decrease)
2007 2006 $
----------- ----------- -----------
Interest income
Loans
Taxable $27,782,068 $24,958,988 $ 2,823,080
Tax-exempt 73,451 63,356 10,095
Securities
Taxable 4,283,508 5,211,672 (928,164)
Tax-exempt 645,451 559,518 85,933
Other 225,151 176,884 48,267
----------- ----------- -----------
Total interest
income 33,009,629 30,970,418 2,039,211
Interest expense
Deposits 13,595,896 11,022,161 2,573,735
Other borrowings 165,859 172,130 (6,271)
Repurchase Agreements 1,615,016 848,277 766,739
Federal Home Loan Bank
advances 1,037,026 2,106,385 (1,069,359)
Trust preferred
securities 1,808,520 1,787,023 21,497
----------- ----------- -----------
Total interest
expense 18,222,317 15,935,976 2,286,341
----------- ----------- -----------
Net interest income 14,787,312 15,034,442 (247,130)
Provision for loan losses 521,306 177,838 343,468
----------- ----------- -----------
Net interest income after
provision for loan losses 14,266,006 14,856,604 (590,598)
Non-interest income
Data service fees 19,382,115 15,011,143 4,370,972
Trust fees 3,385,320 3,192,025 193,295
Customer service fees 2,243,745 2,161,153 82,592
Net gain on sales of
loans 574,000 1,310,536 (736,536)
Net realized gain (loss)
on sales of
available-for-sale
securities 1,998 (494,885) 496,883
Investment securities
recoveries -- 889,454 (889,454)
Loan servicing fees 227,017 358,321 (131,304)
Gain on sale of assets 29,477 94,198 (64,721)
Other income 1,017,727 1,233,376 (215,649)
----------- ----------- -----------
Total non-interest
income 26,861,399 23,755,321 3,106,078
Non-interest expense
Salaries and employee
benefits 17,007,314 16,584,146 423,168
Net occupancy expense 2,134,950 1,840,864 294,086
Equipment expense 6,586,623 5,850,281 736,342
Data processing fees 469,808 562,265 (92,457)
Professional fees 2,226,577 2,395,863 (169,286)
Marketing expense 820,528 669,764 150,764
Printing and office
supplies 661,760 619,100 42,660
Telephone and
communication 1,781,277 1,705,261 76,016
Postage and delivery
expense 1,545,340 735,210 810,130
State, local and other
taxes 584,031 674,280 (90,249)
Employee expense 1,083,056 978,832 104,224
FHLB prepayment penalties -- 214,886 (214,886)
Other expenses 1,735,346 2,072,815 (337,469)
----------- ----------- -----------
Total non-interest
expense 36,636,610 34,903,567 1,733,043
----------- ----------- -----------
Income before income tax
expense 4,490,795 3,708,358 782,437
Income tax expense 1,234,160 948,116 286,044
----------- ----------- -----------
Net income $ 3,256,635 $ 2,760,242 $ 496,393
=========== =========== ===========
Earnings per common share:
Basic $ 0.65 $ 0.55 $ 0.10
=========== =========== ===========
Diluted $ 0.65 $ 0.55 $ 0.10
=========== =========== ===========
RURBAN FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
For The Three Months Ended December 31, 2007 and 2006
Fourth Fourth Increase/
Quarter Quarter (Decrease)
2007 2006 $
----------- ----------- -----------
Interest income
Loans
Taxable $ 7,056,261 $ 6,720,398 $ 335,863
Tax-exempt 22,240 17,638 4,602
Securities
Taxable 1,106,834 1,258,234 (151,400)
Tax-exempt 161,830 149,172 12,658
Other 61,257 77,726 (16,469)
----------- ----------- -----------
Total interest
income 8,408,422 8,223,168 185,254
Interest expense
Deposits 3,383,225 3,326,774 56,451
Other borrowings 25,215 51,910 (26,695)
Retail Repurchase
Agreements 484,118 382,717 101,401
Federal Home Loan Bank
advances 276,492 421,970 (145,478)
Trust preferred
securities 456,427 455,408 1,019
----------- ----------- -----------
Total interest
expense 4,625,477 4,638,779 (13,302)
----------- ----------- -----------
Net interest income 3,782,945 3,584,389 198,556
Provision for loan losses 142,663 (159,483) 302,146
----------- ----------- -----------
Net interest income after
provision for loan losses 3,640,282 3,743,872 (103,590)
Non-interest income
Data service fees 4,914,328 4,698,386 215,942
Trust fees 873,069 830,898 42,171
Customer service fees 593,665 525,881 67,784
Net gain on sales of
loans 137,611 856,344 (718,733)
Net realized gain (loss)
on sales of
available-for-sale
securities 1,631 (494,885) 496,516
Investment securities
recoveries -- 889,454 (889,454)
Loan servicing fees 80,590 95,447 (14,857)
Gain (loss) on sale of
assets (32,362) 8,852 (41,214)
Other income 263,583 165,637 97,946
----------- ----------- -----------
Total non-interest
income 6,832,115 7,576,014 (743,899)
Non-interest expense
Salaries and employee
benefits 4,134,242 4,677,237 (542,995)
Net occupancy expense 587,150 506,142 81,008
Equipment expense 1,678,311 1,681,747 (3,436)
Data processing fees 97,092 159,604 (62,512)
Professional fees 586,327 870,464 (284,137)
Marketing expense 218,549 132,787 85,762
Printing and office
supplies 151,943 165,990 (14,047)
Telephone and
communication 451,918 427,554 24,364
Postage and delivery
expense 376,777 337,993 38,784
State, local and other
taxes 115,441 161,523 (46,082)
Employee expense 281,682 233,491 48,191
FHLB prepayment penalties -- 214,886 (214,886)
Other expenses 485,154 789,587 (304,433)
----------- ----------- -----------
Total non-interest
expense 9,164,586 10,359,005 (1,194,419)
----------- ----------- -----------
Income before income tax
expense 1,307,811 960,881 346,930
Income tax expense 402,275 250,448 151,827
----------- ----------- -----------
Net income $ 905,536 $ 710,433 $ 195,103
=========== =========== ===========
Earnings per common share:
Basic $ 0.18 $ 0.14 $ 0.04
=========== =========== ===========
Diluted $ 0.18 $ 0.14 $ 0.04
=========== =========== ===========
RURBAN FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
For The Three Months Ended December 31, 2007 and September 30, 2007
Fourth Third Increase/
Quarter Quarter (Decrease)
2007 2007 $
----------- ----------- -----------
Interest income
Loans
Taxable $ 7,056,261 $ 7,072,488 $ (16,227)
Tax-exempt 22,240 16,668 5,572
Securities
Taxable 1,106,834 1,041,177 65,657
Tax-exempt 161,830 169,719 (7,889)
Other 61,257 50,288 10,969
----------- ----------- -----------
Total interest
income 8,408,422 8,350,340 58,082
Interest expense
Deposits 3,383,225 3,497,275 (114,050)
Other borrowings 25,215 32,026 (6,811)
Retail Repurchase
Agreements 484,118 435,216 48,902
Federal Home Loan Bank
advances 276,492 268,289 8,203
Trust preferred
securities 456,427 456,582 (155)
----------- ----------- -----------
Total interest
expense 4,625,477 4,689,389 (63,912)
----------- ----------- -----------
Net interest income 3,782,945 3,660,951 121,994
Provision for loan losses 142,663 140,409 2,254
----------- ----------- -----------
Net interest income after
provision for loan losses 3,640,282 3,520,543 119,739
Non-interest income
Data service fees 4,914,328 5,004,394 (90,066)
Trust fees 873,069 819,989 53,080
Customer service fees 593,665 588,447 5,218
Net gain on sales of
loans 137,611 128,947 8,664
Net realized gains on
sales of
available-for-sale
securities 1,631 -- 1,631
Loan servicing fees 80,590 27,284 53,306
Gain (loss) on sale of
assets (32,362) 11,862 (44,224)
Other income 263,583 201,920 61,663
----------- ----------- -----------
Total non-interest
income 6,832,115 6,782,842 49,273
Non-interest expense
Salaries and employee
benefits 4,134,242 4,290,961 (156,719)
Net occupancy expense 587,150 514,742 72,408
Equipment expense 1,678,311 1,625,762 52,549
Data processing fees 97,092 102,292 (5,200)
Professional fees 586,327 461,844 124,483
Marketing expense 218,549 259,196 (40,647)
Printing and office
supplies 151,943 130,363 21,580
Telephone and
communication 451,918 446,465 5,453
Postage and delivery
expense 376,777 392,211 (15,434)
State, local and other
taxes 115,441 103,674 11,767
Employee expense 281,682 266,227 15,455
Other expenses 485,154 512,663 (27,509)
----------- ----------- -----------
Total non-interest
expense 9,164,586 9,106,400 58,186
----------- ----------- -----------
Income before income tax
expense 1,307,811 1,196,985 110,826
Income tax expense 402,275 333,384 68,891
----------- ----------- -----------
Net income $ 905,536 $ 863,601 $ 41,935
=========== =========== ===========
Earnings per common share:
Basic $ 0.18 $ 0.17 $ 0.01
=========== =========== ===========
Diluted $ 0.18 $ 0.17 $ 0.01
=========== =========== ===========
RURBAN FINANCIAL CORP.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
----------------------- -------- -------- -------- --------
(dollars in thousands 4th Qtr YTD 4th Qtr YTD
except per share data) 2007 2007 2006 2006
----------------------- -------- -------- -------- --------
EARNINGS
Net interest income $ 3,783 $ 14,787 $ 3,584 $ 15,034
Provision for loan
loss $ 143 $ 521 $ (159) $ 178
Non-interest income $ 6,832 $ 26,861 $ 7,576 $ 23,755
Revenue (net interest
income plus
non-interest income) $ 10,615 $ 41,648 $ 11,160 $ 38,789
Non-interest expense $ 9,164 $ 36,636 $ 10,359 $ 34,904
Net income $ 906 $ 3,257 $ 710 $ 2,760
PER SHARE DATA
Basic earnings per
share $ 0.18 $ 0.65 $ 0.14 $ 0.55
Diluted earnings per
share $ 0.18 $ 0.65 $ 0.14 $ 0.55
Book value per share $ 11.92 $ 11.92 $ 11.33 $ 11.33
Tangible book value
per share $ 8.00 $ 8.00 $ 7.58 $ 7.58
Cash dividend per
share $ 0.07 $ 0.26 $ 0.06 $ 0.21
PERFORMANCE RATIOS
Return on average
assets 0.64% 0.59% 0.50% 0.50%
Return on average
equity 6.15% 5.62% 5.08% 5.06%
Net interest margin
(tax equivalent) 3.12% 3.10% 2.92% 3.13%
Net interest margin
(Bank Only) 3.43% 3.46% 3.25% 3.62%
Non-interest expense
/ Average assets 6.48% 6.58% 7.27% 6.30%
Efficiency Ratio -
bank (non-GAAP) 76.93% 80.07% 94.85% 88.20%
MARKET DATA PER SHARE
Market value per
share -- Period end $ 12.49 $ 12.49 $ 10.77 $ 10.77
Market as a % of book 105% 105% 95% 95%
Cash dividend yield 2.24% 2.08% 2.23% 1.95%
Period-end common
shares outstanding
(000) 4,979 4,979 5,027 5,027
Common stock market
capitalization
($000) $ 62,188 $ 62,188 $ 54,145 $ 54,145
CAPITAL & LIQUIDITY
Equity to assets 10.6% 10.6% 10.2% 10.2%
Period-end tangible
equity to assets 7.1% 7.1% 6.9% 6.9%
Tier 1 risk-based
capital ratio 14.8% 14.8% 14.7% 14.7%
Total risk-based
capital ratio 16.0% 16.0% 15.8% 15.8%
ASSET QUALITY
Net charge-offs /
(Recoveries) $ 89 $ 248 $ 645 $ 1,160
Net loan charge-offs
(Ann.) / Average
loans 0.09% 0.07% 0.70% 0.33%
Non-performing loans $ 5,990 $ 5,990 $ 3,828 $ 3,828
OREO / OAOs $ 172 $ 172 $ 82 $ 82
Non-performing assets $ 6,162 $ 6,162 $ 3,910 $ 3,910
Non-performing assets
/ Total assets 1.10% 1.10% 0.70% 0.70%
Allowance for loan
losses / Total loans 1.03% 1.03% 1.00% 1.00%
Allowance for loan
losses /
Non-performing Assets 64.8% 64.8% 95.1% 95.1%
END OF PERIOD BALANCES
Total loans, net of
unearned income $389,269 $389,269 $370,102 $370,102
Allowance for loan
loss $ 3,990 $ 3,990 $ 3,717 $ 3,717
Total assets $561,214 $561,214 $556,007 $556,007
Deposits $406,031 $406,031 $414,555 $414,555
Stockholders' equity $ 59,325 $ 59,325 $ 56,955 $ 56,955
Full-time equivalent
employees 275 275 317 317
AVERAGE BALANCES
Loans $389,529 $381,453 $370,687 $354,400
Total earning assets $496,782 $488,289 $502,530 $490,550
Total assets $565,779 $556,572 $569,807 $554,095
Deposits $413,473 $412,767 $415,576 $413,338
Stockholders' equity $ 58,928 $ 57,945 $ 55,963 $ 54,501
Rurban Financial Corp.
Segment Reporting
Fourth Quarter Ended December 31, 2007
------------------------------
RFCBC
State Bank (Loan Total
and Trust Workout Banking
Company)
------------------------------
Income Statement Measures
-------------------------
Interest Income $ 8,437 $ -- $8,437
Interest Expense 4,150 -- 4,150
Net Interest Income 4,287 -- 4,287
Provision For Loan Loss 151 (8) 143
Non-interest Income 1,945 -- 1,945
Non-interest Expense 4,750 158 4,908
Net Income Before Taxes 1,331 (150) 1,181
Income Taxes 397 (52) 345
Net Income QTD $ 934 $ (98) $ 836
Performance Measures
--------------------
Average Assets - QTD $545,299 $ 1,311 $546,609
ROAA 0.69% -- 0.61%
Average Equity - QTD $ 56,882 $ 1,234 $ 58,115
ROAE 6.57% -- 5.75%
Efficiency Ratio - % 74.39% -- 76.93%
Average Loans - QTD $390,599 $ 555 $391,154
Average Deposits - QTD $420,192 $ -- $420,192
-----------------------------------------
Data Parent Elimination Rurban
Processing Company Entries Financial
and Other Corp.
-----------------------------------------
Income Statement Measures
-------------------------
Interest Income $ -- $ 1 $ (30) $ 8,408
Interest Expense 48 457 (30) $ 4,625
Net Interest Income (48) (456) -- $ 3,783
Provision For Loan Loss -- -- -- $ 143
Non-interest Income 5,232 342 (687) $ 6,832
Non-interest Expense 4,202 741 (687) $ 9,164
Net Income Before Taxes 982 (855) -- $ 1,308
Income Taxes 334 (277) -- $ 402
Net Income QTD $ 648 $ (578) $ -- $ 906
Performance Measures
--------------------
Average Assets - QTD $ 20,014 $ 80,827 $(81,671) $565,779
ROAA 12.95% -- -- 0.64%
Average Equity - QTD $ 15,222 $ 58,928 $(73,337) $ 58,928
ROAE 17.03% -- -- 6.15%
Efficiency Ratio - % 79.77% -- -- 84.63%
Average Loans - QTD $ -- $ -- $ (1,624) $389,529
Average Deposits - QTD $ -- $ -- $ (6,718) $413,473
Rurban Financial Corp.
Segment Reporting
Twelve Months Ended December 31, 2007
------------------------------
RFCBC
State Bank (Loan Total
and Trust Workout Banking
Company)
------------------------------
Income Statement Measures
-------------------------
Interest Income $ 33,158 $ 1 $ 33,159
Interest Expense 16,299 -- 16,299
Net Interest Income 16,859 1 16,860
Provision For Loan Loss 550 (29) 521
Non-interest Income 7,476 -- 7,476
Non-interest Expense 19,249 579 19,828
Net Income Before Taxes 4,536 (549) 3,987
Income Taxes 1,263 (187) 1,076
Net Income YTD $ 3,273 $ (362) $ 2,911
Performance Measures
--------------------
Average Assets - YTD $536,059 $ 1,526 $537,585
ROAA 0.61% -- 0.54%
Average Equity - YTD $ 55,543 $ 1,337 $ 56,879
ROAE 5.89% -- 6.82%
Efficiency Ratio - % 77.20% -- 80.07%
Average Loans - YTD $382,836 $ 581 $383,417
Average Deposits - YTD $420,410 $ -- $420,410
-----------------------------------------
Data Parent Elimination Rurban
Processing Company Entries Financial
and Other Corp.
-----------------------------------------
Income Statement Measures
-------------------------
Interest Income $ 1 $ 5 $ (155) $ 33,010
Interest Expense 269 1,809 (155) 18,223
Net Interest Income (268) (1,804) -- 14,787
Provision For Loan Loss -- -- -- 521
Non-interest Income 20,888 1,393 (2,896) 26,861
Non-interest Expense 16,873 2,832 (2,896) 36,636
Net Income Before Taxes 3,747 (3,243) -- 4,491
Income Taxes 1,274 (1,116) -- 1,234
Net Income YTD $ 2,473 $ (2,127) $ -- $ 3,257
Performance Measures
--------------------
Average Assets - YTD $ 20,211 $ 79,691 $(80,916) $556,572
ROAA 12.24% -- -- 0.59%
Average Equity - YTD $ 14,426 $ 57,945 $(71,305) $ 57,945
ROAE 17.14% -- -- 5.62%
Efficiency Ratio - % 80.56% -- -- 86.23%
Average Loans - YTD $ -- $ -- $ (1,965) $381,453
Average Deposits - YTD $ -- $ -- $ (7,642) $412,767
Rurban Financial Corp.
Proforma Performance Measurement
Quarterly Comparison - Fourth Quarter 2007
------------------------------
RFCBC
State Bank (Loan Banking
and Trust Workout Related
Company) Entities
------------------------------
Average Assets
4Q07 $545,299 $ 1,311 $546,609
3Q07 $535,129 $ 1,341 $536,470
2Q07 $529,071 $ 1,547 $530,618
1Q07 $534,629 $ 1,914 $536,543
4Q06 $549,777 $ 2,178 $551,955
4th Quarter Comparison $ (4,478) $ (867) $ (5,346)
Revenue
4Q07 $ 6,232 $ -- $ 6,232
3Q07 $ 5,939 $ -- $ 5,939
2Q07 $ 6,130 $ -- $ 6,130
1Q07 $ 6,024 $ 1 $ 6,025
4Q06 $ 6,345 $ 124 $ 6,469
4th Quarter Comparison $ (113) $ (124) $ (237)
Non-interest Expenses
4Q07 $ 4,750 $ 158 $ 4,908
3Q07 $ 4,805 $ 69 $ 4,874
2Q07 $ 4,712 $ 137 $ 4,849
1Q07 $ 4,973 $ 215 $ 5,188
4Q06 $ 5,747 $ 278 $ 6,025
4th Quarter Comparison $ (997) $ (120) $ (1,117)
Net Income
4Q07 $ 934 $ (98) $ 836
3Q07 $ 714 $ (39) $ 674
2Q07 $ 917 $ (87) $ 830
1Q07 $ 707 $ (136) $ 571
4Q06 $ 569 $ (89) $ 480
4th Quarter Comparison $ 365 $ (9) $ 356
Efficiency Ratio
4Q07 74.39% -- 76.93%
3Q07 79.00% -- 80.17%
2Q07 74.99% -- 77.23%
1Q07 82.20% -- 85.47%
4Q06 88.78% -- 91.37%
4th Quarter Comparison (14.39%) -- (14.44%)
NPA/Total Assets
4Q07 1.04% -- --
3Q07 1.07% -- --
2Q07 1.03% -- --
1Q07 0.66% -- --
4Q06 0.61% -- --
4th Quarter Comparison 0.43% -- --
ROAA
4Q07 0.69% -- 0.61%
3Q07 0.53% -- 0.50%
2Q07 0.69% -- 0.63%
1Q07 0.53% -- 0.43%
4Q06 0.41% -- 0.35%
4th Quarter Comparison 0.28% -- 0.26%
ROAE
4Q07 6.57% -- 5.75%
3Q07 5.14% -- 4.75%
2Q07 6.68% -- 5.90%
1Q07 5.16% -- 4.05%
4Q06 4.20% -- 3.43%
4th Quarter Comparison 2.37% -- 2.32%
Average Equity
4Q07 $ 56,882 $ 1,234 $ 58,115
3Q07 $ 55,534 $ 1,271 $ 56,805
2Q07 $ 54,905 $ 1,344 $ 56,249
1Q07 $ 54,828 $ 1,502 $ 56,330
4Q06 $ 54,249 $ 1,714 $ 55,963
4th Quarter Comparison $ 2,633 $ (480) $ 2,152
-----------------------------------------
Parent Intersegment Rurban
RDSI Company Elimination Financial
and Other Entries Corp.
-----------------------------------------
Average Assets
4Q07 $ 20,014 $ 80,827 $(81,671) $565,779
3Q07 $ 19,739 $ 79,380 $(80,137) $555,451
2Q07 $ 20,320 $ 78,908 $(80,420) $549,426
1Q07 $ 20,217 $ 79,251 $(81,380) $554,631
4Q06 $ 19,695 $ 78,234 $(80,077) $569,807
4th Quarter Comparison $ 319 $ 2,593 $ -- $ (4,028)
Revenue
4Q07 $ 5,184 $ (114) $ (687) $ 10,615
3Q07 $ 5,332 $ (100) $ (727) $ 10,444
2Q07 $ 4,949 $ (82) $ (739) $ 10,258
1Q07 $ 5,155 $ (116) $ (732) $ 10,332
4Q06 $ 4,944 $ 247 $ (500) $ 11,160
4th Quarter Comparison $ 240 $ (361) $ -- $ (545)
Non-interest Expenses
4Q07 $ 4,202 $ 741 $ (687) $ 9,164
3Q07 $ 4,334 $ 626 $ (727) $ 9,106
2Q07 $ 4,228 $ 728 $ (739) $ 9,065
1Q07 $ 4,109 $ 736 $ (732) $ 9,301
4Q06 $ 4,026 $ 822 $ (514) $ 10,359
4th Quarter Comparison $ 176 $ (81) $ -- $ (1,195)
Net Income
4Q07 $ 648 $ (578) $ -- $ 906
3Q07 $ 659 $ (470) $ -- $ 864
2Q07 $ 476 $ (521) $ -- $ 785
1Q07 $ 690 $ (559) $ -- $ 702
4Q06 $ 606 $ (376) $ -- $ 710
4th Quarter Comparison $ 42 $ (202) $ -- $ 196
Efficiency Ratio
4Q07 79.77% -- -- 84.63%
3Q07 80.04% -- -- 85.47%
2Q07 84.09% -- -- 86.61%
1Q07 78.52% -- -- 88.33%
4Q06 80.40% -- -- 91.34%
4th Quarter Comparison (0.63%) -- -- (6.71%)
NPA/Total Assets
4Q07 -- -- -- 1.10%
3Q07 -- -- -- 1.14%
2Q07 -- -- -- 1.09%
1Q07 -- -- -- 0.75%
4Q06 -- -- -- 0.70%
4th Quarter Comparison -- -- -- 0.40%
ROAA
4Q07 12.95% -- -- 0.64%
3Q07 13.35% -- -- 0.62%
2Q07 9.37% -- -- 0.57%
1Q07 13.65% -- -- 0.51%
4Q06 12.31% -- -- 0.50%
4th Quarter Comparison 0.64% -- -- 0.14%
ROAE
4Q07 17.03% -- -- 6.15%
3Q07 17.89% -- -- 5.97%
2Q07 13.43% -- -- 5.45%
1Q07 20.63% -- -- 4.91%
4Q06 19.06% -- -- 5.08%
4th Quarter Comparison (2.03%) -- -- 1.07%
Average Equity
4Q07 $ 15,222 $ 58,928 $(73,337) $ 58,928
3Q07 $ 14,732 $ 57,830 $(71,536) $ 57,830
2Q07 $ 14,182 $ 57,617 $(70,431) $ 57,617
1Q07 $ 13,378 $ 57,192 $(69,708) $ 57,192
4Q06 $ 12,721 $ 55,963 $(68,684) $ 55,963
4th Quarter Comparison $ 2,501 $ 2,965 $ -- $ 2,965