DEFIANCE, Ohio, April 16, 2008 (PRIME NEWSWIRE) -- Rurban Financial Corp. (Nasdaq:RBNF), a leading provider of full-service community banking, investment management, trust services and bank data and item processing, reported first quarter 2008 earnings of $1.11 million, or $0.22 per diluted share, an increase of 58.0% and 60.0%, respectively, above the $702 thousand, or $0.14 per diluted share, reported in first quarter 2007. Improved performance reflects across-the-board improvement at both of Rurban's subsidiary companies, The State Bank and Trust Company and RDSI. The growth initiatives and improved efficiencies implemented over the past two years are providing clear and positive results.
Consolidated earnings for the 2008 first quarter include one-time pre-tax gains of $197,000 and $132,000, respectively, from the partial recovery of previously written-off WorldCom securities and proceeds from the sale of equity securities derived from VISA Inc.'s Initial Public Offering (IPO). These gains were partially offset by $176,000 of one-time expenses associated with the wind-down of RFCBC, Rurban's workout subsidiary. These one-time items resulted in a net after-tax gain of $101,000. The 2007 first quarter included a pre-tax merger-related expense of $95,000 ($63,000 after-tax). Excluding the after-tax impact of the $101,000 net gain for the 2008 quarter and the $63,000 expense for the year-ago quarter, operating earnings were $1.0 million in 2008, compared with $765,000 for the prior-year quarter, up 31.8%.
"This has been a break-through quarter for Rurban," commented Kenneth Joyce, President and CEO of Rurban Financial Corp. "While much of the banking industry has suffered from the financial and economic crises that began over a year ago, Rurban has proven to be more resilient. Our combination of net interest and non-interest income provides balance to our revenue stream, and enables us to be more resistant to interest rate swings. From our earlier experience with problem loans, we have built a credit infrastructure with strong controls and a disciplined lending team. These are the primary factors -- revenue growth and asset quality -- that influence our present and future performance, and that of the banking industry as a whole. We believe that Rurban is well-positioned for the current environment, and we know there are still many additional opportunities as we continue down this path."
The Banking Group (including RFCBC, the workout company) increased earnings from $571,000 for the first quarter of 2007, to $917,000 for the first quarter of 2008, an increase of 60.6%. Excluding earnings from the one-time net after-tax gain in the first quarter of 2008, and merger-related expenses from 2007, 2008 first quarter operating earnings were $881,000 versus $634,000 in 2007, up $247,000, or 39.0%.
RDSI had a record first quarter. The first quarter of 2008 net income was $800,000, compared with $690,000 in the 2007 first quarter, up $110,000, or 15.9%.
Highlights of Rurban's consolidated first quarter performance include:
* Rurban's revenue stream has benefited from the complementary contributions of both subsidiaries. RDSI revenue consists entirely of non-interest income, while State Bank has a mix of 66.3% net interest income and 33.6% non-interest income. The consolidated mix is approximately 66.3% non-interest and the remainder net interest income, a significant advantage in the current banking interest rate environment. * Rurban's Banking Group entered this declining rate environment liability-sensitive and has benefited from this positioning in the current interest rate environment. First quarter 2008 banking net interest margin was 3.45%, up 2 basis points from the linked quarter. * Consolidated return on average assets (ROAA) was 0.78% for the first quarter of 2008, compared with 0.51% for the year-ago quarter, up 27 basis points. On a core operating basis, first quarter ROAA was 0.71% in 2008, and 0.56% in 2007, an increase of 15 basis points. * Profitability has benefited largely from revenue growth; as a percent of average assets, annualized revenue has increased from 7.45% in the first quarter of 2007, to 7.99% for the current quarter -- an improvement of 54 basis points. Meanwhile, annualized operating expenses were a stable percent of average assets, at 6.77%. As Rurban continues with the successful implementation of its expansion strategy, operating leverage should provide growing profitability. * Loans grew $18.7 million, or 5.0%, over the past twelve months, reflecting Rurban's entry into higher-growth markets, such as Lima, Toledo, Fort Wayne and Columbus. Rurban's strategy to complete acquisitions and open loan production offices, followed by full- service branches, has been a cost-effective approach to building its franchise. CONSOLIDATED - FIRST QUARTER RESULTS (Dollars in thousands except per share data) OPERATING EARNINGS:* 1Q 2008 4Q 2007 1Q 2007 -------------------- ------- ------- ------- Net interest income $ 3,817 $ 3,783 $ 3,593 Recurring non-interest income 7,186 6,832 6,739 Operating revenue 11,003 10,615 10,332 Provision for loan losses 192 143 93 Operating expense 9,601 9,164 9,300 Net income (GAAP) 1,109 906 702 Operating income 1,008 906 765 Diluted EPS $ 0.22 $ 0.18 $ 0.14 * Nonrecurring items in 1Q 2008 are (pre-tax) gains of $197,500 from WorldCom recovery, $132,000 of proceeds from VISA IPO and expenses of $176,000 associated with RFCBC. Nonrecurring item in 1Q 2007 was $95,000 of merger-related expense
Operating revenue, consisting of net interest income and recurring non-interest income, was $11.0 million for the first quarter of 2008, up 6.5% from the year-ago quarter. For both quarters, non-interest income contributed approximately 65% of total operating revenue. Both Banking and RDSI contributed to this growth -- net interest income and fee income grew 10.4% and 5.8%, respectively, over first quarter 2007 results. Net interest income, contributed by the Banking Group, grew 10.4% from the combined impact of a 4.9% increase in average loans and a 7.2% improvement in net interest margin.
Operating expenses, excluding non-recurring items, were $9.4 million for the first quarter of 2008, compared with $9.2 million for the first quarter of 2007, an increase of $200,000, or 2.4%. RDSI took billing for postage in-house during the quarter resulting in additional postage expense of $230,000 being recorded. This is offset by increases in revenues. Excluding all non-recurring items, operating expenses were flat for the first quarter 2008 compared to the first quarter of 2007. Expenses are well-controlled, mainly as a result of the efficiencies completed throughout 2007. The reduction in staff kept salaries and employee benefits in check, and virtually unchanged, over the course of the past twelve months.
BANK OPERATING RESULTS
Net income for the Banking Group was $917,000 for the first quarter of 2008 compared with $571,000 reported for the prior-year quarter, an increase of 60.6%. Included in first quarter 2008 results are 50% of the $197,500 recovery on previously charged-off WorldCom bond, (the other 50% was recorded at the holding company level), $132,000 in proceeds from the VISA Inc. IPO, and the $176,000 of one-time expenses.
Mr. Joyce commented, "Our staff has worked hard and smart to obtain these first quarter results. Not only has the Banking Group produced improved earnings, but also, we've repositioned the bank according to the plan that we developed over the course of two years, and it's exciting to see this plan deliver. While current quarter results benefited from a number of nonrecurring items, our performance is still at improved levels, whether measured by GAAP, or by operating earnings. All of our banking offices have been instrumental in expanding our loan portfolio and generating mortgage originations. We originated $18.0 million in mortgage loans during the first quarter 2008 -- this compares to $8.4 million for the first quarter of 2007. These positive results reflect several changes in structure and function we had implemented in 2007, and will continue to execute in 2008."
BANKING - QUARTERLY RESULTS (Dollars in thousands except per share data) OPERATING EARNINGS: 1Q 2008 4Q 2007 1Q 2007 ------------------- ------- ------- ------- Net interest income $ 4,295 $ 4,287 $ 4,131 Recurring non-interest income 1,938 1,945 1,894 Operating revenue 6,233 6,232 6,025 Provision for loan losses 192 143 93 Operating expense 5,018 4,908 5,188 Net income (GAAP) 917 836 571 Operating income $ 881 $ 836 $ 634
Operating revenue, consisting of net interest income and recurring non-interest income, totaled $6.2 million for the first quarter of 2008, compared with $6.0 million for the first quarter of 2007, an increase of 3.5%. Net interest income increased 4.0% to $4.3 million, reflecting earning asset growth of 3.0% and a two basis point expansion in the net interest margin to 3.45%. Mr. Joyce added, "State Bank's net interest margin is being well-managed in this declining interest rate environment and we are being aided by our balance sheet positioning. Non-interest income, excluding non-recurring items, increased to $1.94 million, or 2.3%, compared to the first quarter of 2007. Growth in deposit and mortgage banking fees were offset by slight declines in other income and loan servicing fees."
The Banking Group took a slightly larger provision for loan losses than in previous quarters. The $192,000 loan loss provision more than replaced the level of loans charged-off, which totaled $166,000. Total Allowance for loan losses to total loans was 1.02%, and consistent with the previous year levels.
Operating expenses, excluding non-recurring items, were $4.8 million for the first quarter of 2008, down $251,000, or 4.9%, reported for the prior-year quarter. This decline is attributable to the reduction of 25 full-time equivalent positions during the first quarter of 2007. Reflecting this improvement, the efficiency ratio declined to 75.90% for the current quarter, compared with 76.68% for the linked quarter, and 85.47% for the prior-year quarter.
Total loans were $392.0 million on March 31, 2008, up $18.7 million, or 5.0%, from 12 months ago and up $2.7 million, or an annualized 2.8%, from the linked quarter. Growth over the past twelve months was derived primarily from commercial real estate loans, up $17.4 million, and commercial business loans, up $9.3 million. Commercial loans now account for 65.9% of the loan portfolio, compared with 62.3%, twelve months ago. Linked quarter growth came from agricultural loans, up $4.1 million, and commercial real estate loans, up $2.9 million. Growth for the linked quarter was primarily offset by slight declines in consumer and residential loans.
Total deposits on March 31, 2008 were $416.7 million, up $4.1 million, or 1.0%, from the March 2007 quarter-end. The more robust linked quarter results reflect Money Market Deposit growth of $11.3 million and Interest Checking Deposits growth of $5.2 million. These increases were partially offset by a $2.9 million decline in Retail Time Deposits, a $2.1 million decline in Brokered Time Deposits, and a $1.0 million decline in Savings Deposits. The High Performance Checking promotion begun in April of 2007 has generated $6.2 million in new retail checking account balances at a funding cost of 1.00%. Retail Time Deposits have declined by $10.3 million from the year-ago quarter, reflecting the execution of run-off of municipal deposits as part of the planned balance sheet restructuring.
"We have spent a considerable amount of time restructuring our balance sheet over the past two years," commented Mr. Joyce. "We have dedicated as much time on the liability side of our balance sheet as we have on the asset side. The percentage of transaction account balances to total deposits increased to 47.6% for the current quarter compared to 43.8% for the prior-year first quarter. This has contributed significantly to our reduction in cost of funds."
ASSET QUALITY (Dollars in thousands except percent data) ASSET QUALITY 1Q 2008 4Q 2007 1Q 2007 ------------- ------- ------- ------- Net charge-offs $ 166 $ 89 $ 41 (Ann.) Net charge-offs to avg. loans 0.17% 0.09% 0.04% Non-performing assets (NPAs) $ 6,967 $ 6,162 $ 4,112 NPA / Total assets 1.22% 1.10% 0.75% Allowance for loan losses $ 4,016 $ 3,990 $ 3,769 Allowance for loan losses / Loans 1.02% 1.03% 1.01%
Non-performing assets (loans + OREO + OAO) were $7.0 million, or 1.22%, of total assets on March 31, 2008, compared with $6.2 million, or 1.10%, of assets for the linked quarter and $4.1 million, or 0.75%, of assets 12 months ago. The increase in non-performing assets was primarily due to four credits. Management does not anticipate losses on these credits. Also during the quarter, the company was successful in taking title to one of the three remaining legacy credits, which increased OREO balances. This represents a step in clearing this asset off the balance sheet, aiding us in our goal of reducing NPA's during 2008.
RDSI RESULTS
First quarter 2008 net income for RDSI was $800,000, an increase of 15.9% from the $690,000 reported for the prior-year first quarter. Mr. Joyce commented, "RDSI continues to improve its performance through strong revenue growth and disciplined control of expenses. We converted thirteen new clients over the past year, and have a pipeline in place that should support continued growth through 2008."
Total revenue for first quarter of 2008 was $5.6 million, an increase 8.7% above the $5.2 million reported for the first quarter of 2007. The increase in revenue was aided by $237,000 of revenue associated with postage fees. During the first quarter, RDSI brought the billing for postage associated with client banks in-house. Excluding this change, revenue increased $214,000, or 16.6%, on an annualized basis.
As of March, 2008 the RDSI (including DCM) roster of clients totaled 116 banking organizations, representing a net increase of ten clients since March 31, 2007. RDSI provided Data Processing Services to 76 clients and Item Processing Services to a total of 92 clients.
Operating expenses were $4.4 million for first quarter 2008, up $285,000, or 6.9%, from the first quarter of 2007. The increase was due largely to postage expenses associated with the aforementioned in-house process. Excluding the postage change, operating expenses increased $55,000, or 1.3%, reflecting several efficiencies gained on consolidations within the item processing segment of RDSI's business.
Mr. Joyce concluded, "We are very pleased with RDSI's performance this past quarter, and continue to improve upon both revenue and expenses -- identifying new key growth areas and conservatively managing operating expenses -- to continue our net income growth. As always, we will be working to maximize growth and profitability for Rurban Financial Corp. and its shareholders."
Rurban continues to maintain a strong capital position. Stockholders' equity totaled $59.9 million, on March 31, 2008, an increase of $2.2 million, or 3.7%, from 12 months ago. Capital ratios exceed the regulatory minimums for a well-capitalized institution.
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 and Rurbanc Data Services, Inc. (RDSI), including DCM. The State Bank and Trust Company offers financial services through its 16 branches in Allen, Defiance, Fulton, Lucas, Paulding and Wood Counties, Ohio and Allen County, Indiana and a Loan Production Office in Franklin County, Ohio. 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 4,941,933 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.
CONSOLIDATED BALANCE SHEETS
March 31, 2008, December 31, 2007 and March 31, 2007
March December March
2008 2007 2007
---- ---- ----
(Unaudited) (Unaudited)
ASSETS
Cash and due from banks $ 15,758,593 $ 15,183,627 $ 10,627,291
Federal funds sold 6,400,000 2,000,000 6,500,000
------------ ------------ ------------
Cash and cash equivalents 22,158,593 17,183,627 17,127,291
Interest-earning deposits in
other financial
institutions -- -- 150,000
Available-for-sale
securities 94,378,377 92,661,386 97,148,409
Loans held for sale 2,464,643 1,649,758 110,697
Loans, net of unearned
income 391,962,691 389,268,744 373,293,814
Allowance for loan losses (4,016,230) (3,990,455) (3,768,814)
Premises and equipment, net 15,180,760 15,128,754 15,912,493
Purchased software 4,149,202 4,282,563 4,482,113
Federal Reserve and Federal
Home Loan Bank Stock 4,062,100 4,021,200 4,040,700
Foreclosed assets held for
sale, net 1,572,644 124,131 9,400
Accrued interest receivable 2,752,252 3,008,968 2,820,915
Goodwill 13,940,618 13,940,618 13,690,092
Core deposits and other
intangibles 4,961,846 5,135,228 5,683,598
Cash value of life insurance 12,276,003 12,160,581 10,861,017
Other assets 5,889,849 6,638,895 7,323,829
------------ ------------ ------------
Total assets $571,733,348 $561,213,998 $548,885,554
============ ============ ============
LIABILITIES AND SHAREHOLDERS'
EQUITY
Deposits
Non interest bearing
demand $ 41,748,793 $ 41,541,297 $ 43,759,627
Interest bearing NOW 59,547,916 54,308,665 47,026,613
Savings 24,289,198 25,320,126 27,738,612
Money Market 72,676,846 61,380,252 61,989,662
Time Deposits 218,449,515 223,480,842 232,078,426
------------ ------------ ------------
Total deposits 416,712,268 406,031,182 412,592,940
Notes payable 817,584 922,457 2,515,911
Advances from Federal Home
Loan Bank 23,000,000 24,000,000 17,500,000
Repurchase Agreements 43,536,570 43,006,438 30,827,195
Trust preferred securities 20,620,000 20,620,000 20,620,000
Accrued interest payable 2,481,629 2,532,914 2,233,625
Other liabilities 4,694,986 4,775,773 4,884,579
------------ ------------ ------------
Total liabilities 511,863,037 501,888,764 491,174,250
Shareholders' Equity
Common stock 12,568,583 12,568,583 12,568,583
Additional paid-in capital 14,944,315 14,923,571 14,872,424
Retained earnings 32,956,244 32,361,106 30,808,105
Accumulated other
comprehensive income
(loss) 432,429 82,235 (537,808)
Treasury stock (1,031,260) (610,260) --
------------ ------------ ------------
Total shareholders' equity 59,870,311 59,325,235 57,711,304
------------ ------------ ------------
Total liabilities and
shareholders' equity $571,733,348 $561,213,998 $548,885,554
============ ============ ============
RURBAN FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
For The Three Months Ended March 31, 2008 and 2007 and December 2007
First Fourth First
Quarter Quarter Quarter
2008 2007 2007
---- ---- ----
Interest income
Loans
Taxable $ 6,808,196 $ 7,056,261 $ 6,676,813
Tax-exempt 21,350 22,240 17,293
Securities
Taxable 1,039,894 1,106,834 1,091,197
Tax-exempt 158,367 161,830 153,057
Other 97,409 61,257 78,468
----------- ----------- -----------
Total interest income 8,125,216 8,408,422 8,016,828
Interest expense
Deposits 3,091,902 3,383,225 3,333,730
Other borrowings 17,506 25,215 51,072
Retail Repurchase Agreements 460,552 484,118 343,849
Federal Home Loan Bank advances 302,336 276,492 249,587
Trust preferred securities 435,704 456,427 445,314
----------- ----------- -----------
Total interest expense 4,308,000 4,625,477 4,423,552
----------- ----------- -----------
Net interest income 3,817,216 3,782,945 3,593,276
Provision for loan losses 192,218 142,663 92,640
----------- ----------- -----------
Net interest income after
provision for loan losses 3,624,998 3,640,282 3,500,636
Non-interest income
Data service fees 5,264,565 4,914,328 4,834,136
Trust fees 855,107 873,069 826,382
Customer service fees 586,207 593,665 528,424
Net gain on sales of loans 274,603 137,611 54,279
Net realized gain on sales of
securities -- 1,631 --
Net proceeds from liquidation
of equity securities 132,106 -- --
Investment securities
recoveries 197,487 -- --
Loan servicing fees 62,940 80,590 108,706
Gain (loss) on sale of assets (71,032) (32,362) 35,967
Other income 213,530 263,583 350,848
----------- ----------- -----------
Total non-interest income 7,515,513 6,832,115 6,738,742
Non-interest expense
Salaries and employee benefits 4,438,764 4,134,242 4,396,787
Net occupancy expense 566,016 587,150 527,133
Equipment expense 1,567,637 1,678,311 1,605,873
Data processing fees 96,567 97,092 156,181
Professional fees 570,687 586,327 677,391
Marketing expense 181,747 218,549 155,685
Printing and office supplies 186,052 151,943 198,092
Telephone and communication 421,929 451,918 445,204
Postage and delivery expense 602,634 376,777 392,261
State, local and other taxes 180,768 115,441 199,741
Employee expense 230,611 281,682 255,069
Other expenses 557,948 485,154 290,836
----------- ----------- -----------
Total non-interest expense 9,601,360 9,164,586 9,300,253
----------- ----------- -----------
Income before income tax expense 1,539,151 1,307,811 939,125
Income tax expense 429,795 402,275 236,672
----------- ----------- -----------
Net income $ 1,109,356 $ 905,536 $ 702,453
=========== =========== ===========
Earnings per common share:
Basic $ 0.22 $ 0.18 $ 0.14
=========== =========== ===========
Diluted $ 0.22 $ 0.18 $ 0.14
=========== =========== ===========
RURBAN FINANCIAL CORP.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
----------------------------------
(dollars in -------- -------- -------- -------- --------
thousands except 1st Qtr 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr
per share data) 2008 2007 2007 2007 2007
------------------- -------- -------- -------- -------- --------
EARNINGS
Net interest income $ 3,817 $ 3,783 $ 3,661 $ 3,750 $ 3,593
Provision for loan
loss $ 192 $ 143 $ 140 $ 146 $ 93
Non-interest income $ 7,516 $ 6,832 $ 6,783 $ 6,508 $ 6,739
Revenue (net
interest income
plus non-interest
income) $ 11,333 $ 10,615 $ 10,444 $ 10,258 $ 10,332
Non-interest
expense $ 9,601 $ 9,164 $ 9,106 $ 9,065 $ 9,301
Net income $ 1,109 $ 906 $ 864 $ 785 $ 702
PER SHARE DATA
Basic earnings per
share $ 0.22 $ 0.18 $ 0.17 $ 0.16 $ 0.14
Diluted earnings per
share $ 0.22 $ 0.18 $ 0.17 $ 0.16 $ 0.14
Book value per
share $ 12.11 $ 11.92 $ 11.70 $ 11.43 $ 11.48
Tangible book value
per share $ 8.10 $ 8.00 $ 7.87 $ 7.83 $ 7.69
Cash dividend per
share $ 0.08 $ 0.07 $ 0.07 $ 0.06 $ 0.06
PERFORMANCE RATIOS
Return on average
assets 0.78% 0.64% 0.62% 0.57% 0.51%
Return on average
equity 7.50% 6.15% 5.97% 5.45% 4.91%
Net interest margin
(tax equivalent) 3.26% 3.12% 2.96% 3.19% 3.04%
Net interest margin
(Bank Only) 3.45% 3.43% 3.41% 3.56% 3.45%
Non-interest
expense / Average
assets 6.77% 6.48% 6.56% 6.60% 6.71%
Efficiency Ratio -
bank (non-GAAP) 73.20% 76.68% 80.17% 77.23% 87.20%
MARKET DATA PER SHARE
Market value per
share -- Period
end $ 10.24 $ 12.49 $ 12.65 $ 12.82 $ 11.84
Market as a % of
book 0.85 1.05 1.08 1.12 1.03
Cash dividend yield 3.13% 2.24% 2.21% 1.87% 2.03%
Period-end common
shares outstanding
(000) 4,942 4,979 4,999 5,015 5,027
Common stock market
capitalization
($000) $ 50,605 $ 62,188 $ 63,237 $ 64,298 $ 59,525
CAPITAL & LIQUIDITY
Equity to assets 10.5% 10.6% 10.3% 10.5% 10.5%
Period-end tangible
equity to tangible
assets 7.2% 7.3% 7.2% 7.4% 7.3%
Tier 1 risk-based
capital ratio 14.9% 14.8% 14.6% 14.9% 14.8%
Total risk-based
capital ratio 15.8% 16.0% 15.7% 16.1% 15.9%
ASSET QUALITY
Net charge-offs /
(Recoveries) $ 166 $ 89 $ 28 $ 90 $ 41
Net loan
charge-offs
(Ann.) / Average
loans 0.17% 0.09% 0.03% 0.09% 0.04%
Non-performing
loans $ 5,305 $ 5,990 $ 6,361 $ 5,913 $ 4,103
OREO / OAOs $ 1,662 $ 172 $ 71 $ 84 $ 9
Non-performing
assets $ 6,967 $ 6,162 $ 6,432 $ 5,997 $ 4,112
Non-performing
assets / Total
assets 1.22% 1.10% 1.14% 1.09% 0.75%
Allowance for loan
losses / Total
loans 1.02% 1.03% 1.01% 1.00% 1.01%
Allowance for loan
losses /
Non-performing
Assets 57.6% 64.8% 61.2% 63.8% 91.6%
END OF PERIOD
BALANCES
Total loans, net of
unearned income $391,963 $389,084 $388,264 $381,662 $373,294
Allowance for loan
loss $ 4,016 $ 3,990 $ 3,937 $ 3,824 $ 3,769
Total assets $571,733 $561,214 $565,674 $548,200 $548,886
Deposits $416,712 $406,031 $413,152 $407,585 $412,593
Stockholders'
equity $ 59,870 $ 59,325 $ 58,504 $ 57,349 $ 57,711
Full-time
equivalent
employees 272 275 280 285 294
AVERAGE BALANCES
Loans $389,917 $389,526 $385,126 $379,191 $371,724
Total earning
assets $498,731 $496,782 $488,798 $482,036 $484,110
Total assets $567,129 $565,779 $555,451 $549,426 $554,631
Deposits $412,424 $413,473 $411,948 $410,392 $415,887
Stockholders'
equity $ 59,149 $ 58,928 $ 57,830 $ 57,617 $ 57,192
Rurban Financial Corp.
Segment Reporting
First Quarter Ended March 31, 2008
------------------------------------------------------
Parent Rurban
Total Data Company Elimination Financial
Banking Processing and Other Entries Corp.
------------------------------------------------------
Income Statement
Measures
----------------
Interest Income $ 8,151 $ -- $ 1 $ (27) $ 8,125
Interest Expense 3,856 44 435 (27) $ 4,308
Net Interest
Income 4,295 (44) (434) -- $ 3,817
Provision For
Loan Loss 192 -- -- -- $ 192
Non-interest
Income 2,169 5,650 407 (710) $ 7,516
Non-interest
Expense 5,018 4,394 899 (710) $ 9,601
Net Income QTD $ 917 $ 800 $ (608) $ -- $ 1,109
Performance
Measures
-----------
Average Assets
-QTD $547,502 $ 20,103 $ 81,297 $ (81,773) $567,129
ROAA 0.67% 15.92% -- -- 0.78%
Average Equity
- QTD $ 59,044 $ 15,282 $ 59,149 $ (74,326) $ 59,149
ROAE 6.21% 20.94% -- -- 7.50%
Efficiency
Ratio - % 75.90% 77.28% -- -- 83.19%
Average Loans
- QTD $391,379 $ -- $ -- $ (1,462) $389,917
Average
Deposits
- QTD $418,409 $ -- $ -- $ (5,985) $412,424
Rurban Financial Corp.
Proforma Performance Measurement
Quarterly Comparison - First Quarter 2008
---------------------------------------------------
Banking Parent Intersegment Rurban
Related RDSI Company Elimination Financial
Entities and Other Entries Corp.
---------------------------------------------------
Revenue
-------
1Q08 $ 6,464 $ 5,606 $ (27) $ (710) $ 11,333
4Q07 $ 6,232 $ 5,184 $ (114) $ (687) $ 10,615
3Q07 $ 5,939 $ 5,332 $ (100) $ (727) $ 10,444
2Q07 $ 6,130 $ 4,949 $ (82) $ (739) $ 10,258
1Q07 $ 6,025 $ 5,155 $ (116) $ (732) $ 10,332
1st Quarter
Comparison $ 439 $ 451 $ 89 -- $ 1,001
Non-interest
Expenses
------------
1Q08 $ 5,018 $ 4,394 $ 899 $ (710) $ 9,601
4Q07 $ 4,908 $ 4,202 $ 742 $ (687) $ 9,164
3Q07 $ 4,874 $ 4,334 $ 626 $ (727) $ 9,106
2Q07 $ 4,849 $ 4,228 $ 728 $ (739) $ 9,065
1Q07 $ 5,188 $ 4,109 $ 736 $ (732) $ 9,301
1st Quarter
Comparison $ (170) $ 285 $ 163 $ -- $ 300
Net Income
----------
1Q08 $ 917 $ 800 $ (608) $ -- $ 1,109
4Q07 $ 836 $ 648 $ (578) $ -- $ 906
3Q07 $ 674 $ 659 $ (470) $ -- $ 864
2Q07 $ 830 $ 476 $ (521) $ -- $ 785
1Q07 $ 571 $ 690 $ (559) $ -- $ 702
1st Quarter
Comparison $ 346 $ 110 $ (49) $ -- $ 407
Average Assets
--------------
1Q08 $547,502 $20,103 $81,297 $ (81,773) $567,129
4Q07 $546,609 $20,014 $80,827 $ (81,671) $565,779
3Q07 $536,470 $19,739 $79,380 $ (80,137) $555,451
2Q07 $530,618 $20,320 $78,908 $ (80,420) $549,426
1Q07 $536,543 $20,217 $79,251 $ (81,380) $554,631
1st Quarter
Comparison $ 10,959 $ (114) $ 2,046 $ -- $ 12,498
ROAA
----
1Q08 0.67% 15.92% -- -- 0.78%
4Q07 0.61% 12.95% -- -- 0.64%
3Q07 0.50% 13.35% -- -- 0.62%
2Q07 0.63% 9.37% -- -- 0.57%
1Q07 0.43% 13.65% -- -- 0.51%
1st Quarter
Comparison 0.24% 2.44% -- -- 0.27%
Average Equity
--------------
1Q08 $ 59,044 $15,282 $59,149 $ (74,326) $ 59,149
4Q07 $ 58,115 $15,222 $58,928 $ (73,337) $ 58,928
3Q07 $ 56,805 $14,732 $57,830 $ (71,536) $ 57,830
2Q07 $ 56,249 $14,182 $57,617 $ (70,431) $ 57,617
1Q07 $ 56,330 $13,378 $57,192 $ (69,708) $ 57,192
1st Quarter
Comparison $ 2,714 $ 1,904 $ 1,957 -- $ 1,957
ROAE
----
1Q08 6.21% 20.94% -- -- 7.50%
4Q07 5.75% 17.03% -- -- 6.15%
3Q07 4.75% 17.89% -- -- 5.97%
2Q07 5.90% 13.43% -- -- 5.45%
1Q07 4.05% 20.63% -- -- 4.91%
1st Quarter
Comparison 2.16% 0.31% -- -- 2.59%
Efficiency Ratio
----------------
1Q08 75.90% 77.28% -- -- 83.19%
4Q07 76.68% 79.77% -- -- 84.49%
3Q07 80.17% 80.04% -- -- 85.47%
2Q07 77.23% 84.09% -- -- 86.61%
1Q07 85.47% 78.52% -- -- 88.33%
1st Quarter
Comparison (9.57%) (1.24%) -- -- (5.14%)