Attached files
| file | filename |
|---|---|
| 8-K - SB FINANCIAL GROUP, INC. | v209346_8k.htm |
Exhibit
99.1
Rurban
Financial Corp. Announces 2010 Fourth Quarter and Full-Year Results
DEFIANCE,
OH — January 26, 2011 — Rurban Financial Corp. (NASDAQ: RBNF) (“Rurban” or the
“Company”), a diversified financial services company providing full-service
community banking, wealth management, and data/item processing services,
reported a fourth quarter 2010 net loss of $853,000, or ($0.18) per diluted
share, compared to a net loss of $1.88 million, or ($0.39) per diluted share,
for the 2009 fourth quarter. For the 2010 full year, the Company reported a net
loss of $9.88 million, or ($2.03) per diluted share, compared to net income of
$382,500, or $0.07 per diluted share, for the 2009 full year.
Financial
results for both 2010 and 2009 include certain non-recurring items at Rurban’s
banking subsidiary, The State Bank and Trust Company (“State Bank” or the
“Bank”), and Rurban's data and item processing subsidiary, Rurbanc Data
Services, Inc. dba RDSI Banking Systems ("RDSI"). Non-recurring charges at RDSI
relate primarily to the previously planned spin-off from Rurban and the proposed
merger with New Core Holdings, Inc. ("New Core"). The proposed transaction was
first announced in the second quarter of 2009, and the Company announced in the
second quarter of 2010 that the planned spin-off and merger could not be
successfully completed. Impairments and write-offs of software, hardware, and
development costs related to these transactions were a total of $10.0 million
for 2010 ($6.5 million after-tax), and for the 2009 fourth quarter and full
year, $0.78 million and $1.23 million, respectively, ($0.51 million and $0.80
million after-tax).
Non-recurring
items reported by State Bank include $0.45 million of pretax gains ($0.30
million after-tax) on the sale of securities in 2010, and for the 2009 fourth
quarter and full year, $0.48 million and $0.96 million, respectively, of pretax
gains ($0.31 million and $0.65 million after-tax) and an industry-wide FDIC
special assessment of $0.3 million ($0.2 million after tax) in the second
quarter of 2009.
The
following table provides segment information for Rurban on a quarterly basis and
identifies the non-recurring charges reported for each quarter. Excluding those
one-time charges provides useful information relating to Rurban’s operating
performance.
|
After-Tax
Earnings
|
Banking
|
Data
Processing
|
Parent/Other
|
Rurban
Financial
|
One-Time After |
Core
Rurban
Financial
|
||||||||||||||||||
| $(000) |
(GAAP)
|
(GAAP)
|
(GAAP)
|
(GAAP)
|
Tax Charges |
(Non-GAAP)
|
||||||||||||||||||
| 4Q 2010 | $ | 517 | $ | (870 | ) | $ | (500 | ) | $ | (853 | ) | $ | 0 | $ | (853 | ) | ||||||||
| 3Q 2010 | $ | 548 | $ | (54 | ) | $ | (468 | ) | $ | 26 | $ | 0 | $ | 26 | ||||||||||
| 2Q 2010 | $ | (1,479 | ) | $ | (6,446 | ) | $ | (282 | ) | $ | (8,207 | ) | $ | (5,614 | ) | $ | (2,593 | ) | ||||||
| 1Q 2010 | $ | 538 | $ | (879 | ) | $ | (507 | ) | $ | (848 | ) | $ | (876 | ) | $ | 28 | ||||||||
| 4Q 2009 | $ | (577 | ) | $ | (509 | ) | $ | (798 | ) | $ | (1,884 | ) | $ | (200 | ) | $ | (1,375 | ) | ||||||
| FY 2010 | $ | 124 | $ | (8,249 | ) | $ | (1,757 | ) | $ | (9,882 | ) | $ | (6,490 | ) | $ | (3,392 | ) | |||||||
| FY 2009 | $ | 2,045 | $ | 875 | $ | (2,537 | ) | $ | 382 | $ | (273 | ) | $ | 655 | ||||||||||
Highlights
of the fourth quarter include:
|
·
|
Both
volume and profit margin of mortgage originations contributed to a record
fourth quarter and year. Originations were $90.5 million and $235 million,
respectively, for the fourth quarter and 12-months of 2010, generating
$1.10 million in fourth quarter gains from mortgage loan sales, and $2.86
million for the year. This compares favorably to the $222 million of
mortgages originated in 2009, which generated gains on sale of $1.57
million.
|
|
·
|
RDSI
continues to reduce its operating expenses in line with its declining
revenue stream. All external data processing clients have already
completed their de-conversions, and revenues appear to have stabilized at
$1.5 million per quarter, representing a $6 million revenue base for the
upcoming year. Rurban/State Bank remains as RDSI’s only Data Processing
client, while remaining item processing clients not tied to data
processing services have stabilized. With monthly operating expenses
edging below $1 million, it is currently expected that RDSI should reach a
break-even level of operation early in
2011.
|
|
·
|
Non-performing
assets increased modestly during the most recent quarter when a $2.4
million credit moved to non-performing status; however, problem assets
still declined by $6.5 million, or 32 percent, over the course of the past
12 months.
|
|
·
|
The
cost savings implemented at year-end 2009 have been reducing State Bank’s
operating expenses during the course of 2010; salary and benefits expense
for 2010 was $12.1 million, lower by $3.3 million compared to
2009.
|
|
·
|
Capital
ratios all remain in excess of “well-capitalized” regulatory thresholds
for State Bank, and Holding Company ratios have improved after $10 million
of charges were taken by RDSI in the second quarter of
2010.
|
Mark A.
Klein, President and Chief Executive Officer of Rurban Financial Corp.,
commented, “There are many who were pleased to see 2010 come to an end, and I
must be counted as one of those. For most, the pain has been caused by the
relentlessly depressing impact of the Great Recession which has dragged on for
several years now, wreaking havoc in the banking industry, among others, in
terms of loan losses, tightening of credit standards to long-time customers who
have become friends as well, and the pain of downsizing your operations and
having to choose who will stay and who will go. Rurban escaped most of those
recession-related trials through prudent lending practices learned in previous
credit cycles.
“State
Bank has experienced a higher level of nonperforming assets over the past few
years, but nothing that was unmanageable. At two percent of total assets, the
resolution of our non-performing portfolio has been progressing smoothly. We hit
a road bump this quarter when a large CRE loan moved to non-performing status.
We have been proactive this past year, charging off problem loans consistently
and aggressively so as not to become bogged down by administrative
issues.
“Our
mandate is to make loans,” continued Klein, “and we’ve located our lenders where
the lending action is. First of all, we are assisting qualified borrowers to own
their own homes. Rates are still reasonable as are housing prices, and our
lenders are doing a terrific job. We originated $235 million of residential
mortgages this past year, and sold them at a gain of $2.9 million. Secondly,
we’ve added to our Columbus lending team over the past year. The Columbus market
continues to drive our loan volumes, but Northwest Ohio is doing a great job as
well. In other loan categories besides residential real estate, we seem to be
holding our own. We don’t see much opportunity for growth at the present time,
but we have been selective on pricing and credit quality, and until we see both,
we will take a pass. As the economy gets stronger in our markets, we are well
positioned to book our share of the upside.
“RDSI has
been the source of this past year’s anguish and teeth-gnashing. We have labored
mightily to reduce RDSI’s expenses to keep pace with the revenues we lost from
the de-conversion of data processing customers. We don’t have all of the answers
yet, but we believe we have RDSI under reasonable control, with a major new item
processing customer on board, and new products under development.
“We’ve
entered 2011 with a new management team excited about Rurban’s prospects for the
upcoming year. Our bank is on course, and there is nothing but upside on the
horizon for RDSI. As I commented earlier, I wouldn’t want to repeat
2010. But on the other hand, we’ve learned some valuable lessons that have
prepared us for a stronger future.”
Consolidated
Revenue
Total
consolidated revenue, consisting of net interest income and non-interest income,
was $41.2 million for 2010, a decline of $9.4 million, or 18.6 percent, from the
$50.6 million generated during 2009. The entire shortfall can be attributed to
the $9.1 million decline in RDSI’s data services revenue. Net interest income
was $20.0 million, down $1.0 million, or 4.9 percent, from the $21.0 million
earned in the prior-year period, due to a modest 12 basis point decline in the
net interest margin, to 3.67 percent, combined with a one percent decline in the
level of earning assets year over year. For 2010, State Bank accounted for 81
percent of 2010 consolidated revenue compared to 66 percent in 2009. By the
fourth quarter of 2010, State Bank’s revenue contribution increased to 93
percent of the consolidated amount, entirely due to declining trends at RDSI.
Fourth quarter 2010 revenue was $9.7 million, down $2.7 million, or 22.0
percent, from the year-ago quarter. The $3.0 million decline in RDSI’s data
services revenue more than offset improvement in State Bank’s non-interest
income.
State Bank
Revenue
State
Bank reported total operating revenue, net of securities gains, of $32.8 million
for 2010, virtually unchanged from the $32.6 million reported for the prior
year. For the fourth quarter of 2010, total operating revenue was $9.06 million
compared to $8.27 million for the year-ago quarter and $8.4 million for the
linked quarter.
|
State
Bank Operating Revenue
|
||||||||||||||||||||
|
($000s)
|
4Q 2010 | 3Q 2010 | 4Q 2009 |
FY
2010
|
FY
2009
|
|||||||||||||||
|
Net
Interest Income
|
$ | 5,552 | $ | 5,337 | $ | 5,752 | $ | 21,870 | $ | 22,753 | ||||||||||
|
Trust
fees
|
690 | 674 | 665 | 2,647 | 2,601 | |||||||||||||||
|
Customer
service fees
|
615 | 644 | 684 | 2,461 | 2,608 | |||||||||||||||
|
Gain
on sales of mortgage loans
|
1,101 | 942 | 307 | 2,860 | 1,575 | |||||||||||||||
|
OMSR
servicing origination fee
|
739 | 494 | 248 | 1,634 | 1,639 | |||||||||||||||
|
Gain
on sales of other loans
|
74 | 125 | 62 | 307 | 142 | |||||||||||||||
|
Loan
servicing fees
|
211 | 188 | 145 | 683 | 443 | |||||||||||||||
|
Loss
on sale/disposal of assets Other income
|
(59 | ) | (118 | ) | (42 | ) | (208 | ) | (112 | ) | ||||||||||
| 138 | 148 | 452 | 560 | 914 | ||||||||||||||||
|
Core
Non-interest Income
|
$ | 3,508 | $ | 3,096 | $ | 2,521 | $ | 10,944 | $ | 9,810 | ||||||||||
|
Total
Operating Revenue
|
$ | 9,060 | $ | 8,433 | $ | 8,273 | $ | 32,814 | $ | 32,563 | ||||||||||
|
Non-core:
Gain on securities sales
|
(1 | ) | -- | 533 | 488 | 960 | ||||||||||||||
For the
2010 fiscal year, State Bank reported $21.9 million of net interest income,
excluding $1.91 million of interest paid at the parent on $20 million of trust
preferred securities and $6.0 million of borrowings by RDSI. This compares to
$22.8 million of net interest income reported by State Bank for 2009, excluding
$1.75 million parent and subsidiary interest expense. The $0.9 million, or 4.0
percent, decline in 2010 net interest income resulted from a $0.55 million, or
one percent, decline in average earning assets combined with an eight basis
point compression in the net interest margin, to 3.92 percent, primarily due to
sharply lower yields from a higher level of cash and investment
securities.
For the
fourth quarter of 2010, net interest income was $5.55 million, down $0.20
million, or 3.5 percent, from the year-ago quarter, but higher than the 2010
third quarter by $0.22 million. Both margin and volume of earning assets have
improved over 2010 third quarter results; the fourth quarter net interest margin
of 3.87 percent and average earnings assets of $563.3 million were ten basis
points and $8.9 million higher, respectively, compared to the linked
quarter.
Excluding
from consolidated operations only RDSI’s net data services income of $9.7
million in 2010 and $18.9 million in 2009, State Bank’s non-interest income from
operations was $10.9 million for 2010 compared to $9.81 million for the prior
year, up 11.6 percent. Excluding net data service fees of $1.1 million and $4.1
million from fourth quarter consolidated non-interest income demonstrates State
Bank’s positive trends more clearly; 2010 fourth quarter non-interest income was
$3.5 million, 39 percent higher than the year-ago quarter and 13.3 percent above
the linked quarter. State Bank experienced moderate growth in trust income
year-over-year, but gains have been largely offset by declining customer service
fees.
The most
important area of State Bank revenue growth has been mortgage banking activity.
State Bank originated a record level of mortgages for the fourth quarter and
full year: $90.5 million and $235 million, respectively, generating $1.10
million and $2.86 million of gains in the fourth quarter and 12-month periods of
2010, on mortgages sold into the secondary market. Since servicing is retained
on all loans originated by State Bank, the mortgage servicing portfolio has
enjoyed strong growth over the past twelve months, up $120 million, or 58
percent, since year-end 2009. As a result, loan servicing fees have also
demonstrated substantial growth over the past year, up 40 percent to $607,000 in
2010 compared to $443,000 in 2009.
|
Mortgage
Banking Activity
|
||||||||||||||||||
|
($000s)
|
4Q 2010 | 3Q 2010 | 4Q 2009 |
FY
2010
|
FY
2009
|
|||||||||||||
|
Mortgage
originations
|
90,483 | 67,840 | 44,142 | 234,936 | 222,414 | |||||||||||||
|
Mortgage
sales
|
79,059 | 66,036 | 31,461 | 226,243 | 209,653 | |||||||||||||
|
Mortgage
servicing portfolio
|
328,435 | 276,298 | 208,276 | 328,435 | 208,276 | |||||||||||||
|
Mortgage
servicing rights (MSR) – Fair Value
|
3,190 | 2,042 | 1,955 | 3,190 | 1,955 | |||||||||||||
|
Mortgage
servicing revenue:
|
||||||||||||||||||
|
OMSR
service fee
|
739 | 494 | 248 | 1,634 | 1,639 | |||||||||||||
|
Plus:
Loan servicing sees
|
191 | 133 | 145 | 607 | 443 | |||||||||||||
|
Total
servicing revenue
|
$ | 930 | $ | 627 | $ | 393 | $ | 2,241 | $ | 2,082 | ||||||||
|
Less:
OMSR amortization expense
|
250 | 192 | 47 | 484 | 305 | |||||||||||||
|
Less:
OMSR impairment exp./ (gain)
|
(660 | ) | 400 | (40 | ) | (85 | (15 | ) | ||||||||||
|
Net
mortgage servicing revenue
|
$ | 1,339 | $ | 34 | $ | 386 | $ | 1,843 | $ | 1,791 | ||||||||
|
Plus:
Gain on sale of residential mtg.
|
$ | 1,101 | $ | 942 | $ | 307 | $ | 2,860 | $ | 1,575 | ||||||||
|
Net
mortgage banking income
|
$ | 2,440 | $ | 976 | $ | 693 | $ | 4,702 | $ | 3,366 |
Net
mortgage banking income, consisting of net servicing revenue and gains on the
sale of residential mortgages, was $4.70 million for 2010, up $1.34 million, or
39.7 percent, from 2009. Net servicing revenue, after amortization and
impairment expenses, was $1.84 million in 2010, an increase of 2.9 percent above
the $1.79 million reported for 2009; the majority of servicing revenue – in
excess of 72 percent -- was earned in the 2010 fourth quarter from Mortgage
Servicing Rights (MSRs) service fees and the recapture of $0.66 million of
impairment fees. During the earlier part of 2010, declining interest rates
impacted the valuation of the Bank’s mortgage servicing rights; the situation
was sharply reversed in the 2010 fourth quarter, when the fair value of State
Bank’s MSRs jumped by 56 percent above its $2.0 million valuation in the third
quarter of 2010. State Bank more than recaptured the entire year’s impairment
expense, ending 2010 with a gain of $85,000 compared to a gain of $15,000 for
2009.
For 2010,
$2.86 million, or 61 percent, of net mortgage banking income was derived from
gains on the sale of mortgages originated by State Bank; this compares with
$1.58 million, or 47 percent, from 2009 gains on sale. While mortgage sales of
$226 million in 2010 were only 7.9 percent higher than in 2009, the spread
achieved was substantially greater in 2010: 1.26 percent versus 0.75 percent in
2009. In addition to mortgages, State Bank also sold $1.38 million and $3.83
million, respectively, of SBA and FSA loans in 2010, reporting gains of $307,000
in 2010 compared to $142,000 in 2009.
RDSI
Revenue
Revenue
derived from data services provided by RDSI was $10.5 million in 2010, a decline
of 46.3 percent from the prior year. Of this total, Rurban/State Bank accounted
for $1.22 million of RDSI revenue in 2010. It is
anticipated that RDSI will continue to provide data services to Rurban/State
Bank going forward. For the most recent quarter, RDSI generated $1.5 million of
revenues, of which Rurban/State Bank accounted for $0.4 million.
|
Data
Services Fee Income
|
||||||||||||||||||||
|
RDSI
($000)
|
4Q 2010 | 3Q 2010 | 4Q 2009 |
FY2010
|
FY2009
|
|||||||||||||||
|
Data
Processing
|
||||||||||||||||||||
|
Information
Services
|
170 | 512 | 1,330 | 2,558 | 6,451 | |||||||||||||||
|
Application
Services
|
204 | 480 | 1,363 | 2,552 | 5,865 | |||||||||||||||
|
Network
Services
|
77 | 133 | 244 | 667 | 1,109 | |||||||||||||||
|
Payment
Solutions
|
1,006 | 1,168 | 1,559 | 5,206 | 6,760 | |||||||||||||||
|
Other
|
1 | 46 | 14 | 49 | 188 | |||||||||||||||
|
RDSI
Revenue
|
$ | 1,458 | $ | 2,339 | $ | 4,510 | $ | 10,953 | $ | 20,518 | ||||||||||
|
Less:
Intercompany
|
(404 | ) | (295 | ) | (385 | ) | (1,217 | ) | (1,658 | ) | ||||||||||
|
Net
External RDSI Revenue
|
$ | 1,054 | $ | 2,044 | $ | 4,125 | $ | 9,736 | $ | 18,860 | ||||||||||
The
previously reported loss of data processing customers at RDSI contributed
directly to the decline in total data services revenue, which consists of fee
income from both data and item processing services. Over the past twelve months,
RDSI’s data processing client base has shrunk from 68 customers to only one
still utilizing the ITI core processing system at year-end 2010: Rurban/State
Bank.
Since
many of the data processing clients were multiple users of RDSI services,
revenue from Network Services and Payment Solutions has also been impacted, but
to a lesser extent; RDSI's DCM division, operating as Payment Solutions,
continues to provide item processing services to a separate and stable customer
base without ties to data processing. While item processing clients have
decreased from 89 to 44 over the past twelve months, virtually all were data
processing as well as item processing clients, and their need for data
processing services governed their departures. Although revenue from Payment
Solutions declined by 23 percent over the course of the past year, revenues have
recently stabilized at approximately $1.5 million per quarter. Rurban plans to
continue Item Processing and Network Services as stand-alone RDSI offerings
while Rurban and RDSI evaluate their options with respect to re-entering the
data processing market.
Loan Loss
Provision
The
fourth quarter provision for loan losses was $1.8 million compared to $0.9
million and $3.5 million, respectively, for the linked and year-ago quarters.
During 2010, Rurban provided a total of $11.8 million to the loan loss reserve,
of which RDSI contributed $3.0 million in the second quarter related to a
software development loan made by RDSI. As of December 31, 2010, the allowance
for loan losses stood at $6.7 million, or 1.54 percent of total loans, compared
to 1.47 percent of total loans for the linked quarter and 1.50 percent for the
year-ago third quarter.
Consolidated Non-interest
Expense
Non-interest
expense for 2010 was $46.4 million compared to $45.1 million in 2009. Excluding
non-recurring costs of $6.66 million in 2010 and $1.08 million in 2009 relating
to the previously planned spinoff of RDSI and merger with New Core, and State
Bank’s $0.3 million share of the industry-wide FDIC special assessment in 2009,
operating expenses were $39.7 million in 2010, a decline of $4.0 million, or 9.2
percent, from 2009. Non-interest expense for the fourth quarter of 2010 was
$9.22 million compared to $12.1 million reported for the year-ago quarter.
Excluding several charges from the 2009 fourth quarter aggregating $0.67 million
related to the previously planned spin-off of RDSI and merger with New Core,
2010 fourth quarter operating expense was lower by $2.2 million, or 19.3
percent, than for the year-earlier fourth quarter.
Consolidated Balance
Sheet
Total
assets at December 31, 2010 were $666.5 million, down $6.5 million, or 1.0
percent, over year-end 2009 levels; assets were lower by $14.7 million, or 2.2
percent, compared to the previous quarter. Surplus liquidity from loan pay downs
earlier in the year was initially held short-term in cash and cash equivalents;
during the fourth quarter, Rurban reduced its cash holdings by $30 million,
investing in higher-yielding marketable securities and reducing higher- cost
time deposits as they matured. Rurban ended the year with securities higher by
$28 million, and loans down $33 million from year-end 2009.
Total
loans, net of unearned income, were $436.6 million as of December 31, 2010, down
7.1 percent from year-end 2009, but virtually unchanged from the linked quarter.
Over the course of the past twelve months, the composition of State Bank’s loan
portfolio has been remarkably stable and also lower in real estate risk than
most community banks.
|
Total
Loans (including HFS)
($000s)
|
4th
Qtr 2010
|
3rd
Qtr 2010
|
2nd
Qtr 2010
|
1st
Qtr 2010
|
4th
Qtr 2009
|
|||||||||||||||
|
C&D
|
16,177 | 15,310 | 12,997 | 12,746 | 11,605 | |||||||||||||||
|
Comm.
RE-owner occ.
|
65,552 | 67,288 | 67,160 | 71,716 | 69,434 | |||||||||||||||
|
Comm.
RE – investor
|
86,956 | 87,271 | 85,639 | 85,808 | 89,963 | |||||||||||||||
|
1-4
family mortgages
|
105,312 | 108,825 | 114,818 | 115,481 | 121,753 | |||||||||||||||
|
C&I
|
69,510 | 69,917 | 78,488 | 73,290 | 80,702 | |||||||||||||||
|
Agriculture
|
40,829 | 37,223 | 39,389 | 38,235 | 41,485 | |||||||||||||||
|
Consumer
|
49,334 | 48,577 | 50,611 | 49,054 | 50,569 | |||||||||||||||
|
Other
|
2,930 | 3,039 | 3,786 | 4,222 | 4,339 | |||||||||||||||
|
Total
Loans
|
$ | 436,600 | $ | 437,450 | $ | 452,888 | $ | 450,552 | $ | 469,850 |
The
largest loan category, commercial real estate (“CRE”), accounted for 35 percent
of total loans, or $153 million at December 31, 2010, nearly the same level as
twelve months earlier. Along with $16 million of construction and development
loans (“C&D”), these two categories of higher risk real estate loans
together account for under 40 percent of total loans. State Bank’s portfolio of
1-4 family residential real estate loans currently stands at $105 million, or 24
percent of total loans; this segment declined by approximately 14 percent since
year-end 2009, as State Bank ramped up its sales into the secondary
markets.
Total
deposits as of December 31, 2010 were $515.7 million, up $24.5 million, or 5.0
percent, since 2009 year-end. Virtually all of the growth -- $23.8 million –
occurred in transactional accounts; noninterest-bearing demand deposits grew
$5.5 million and NOW accounts grew $18.2 million. These surplus deposits were
applied to pay down $18 million of higher cost borrowings.
Asset Quality –
Non-Performing Assets
Rurban’s
asset quality has improved substantially since year-end 2009; nonaccrual loans
declined $6.2 million since December 31, 2009. Substantial progress was made
reducing non-performing investor-owned commercial real estate over the past
year, which now stands at $0.7 million. In the fourth quarter, a $2.4 million
loan secured by a warehouse was added to the non-performing
portfolio.
Non-Performing
Assets by Category
| $(000) |
12/31/2010
|
9/30/2010
|
6/30/2010
|
3/31/2010
|
12/31/2009
|
||||||||||||||||
|
Secured
by Real Estate:
|
|||||||||||||||||||||
|
C&D
|
0 | 634 | 622 | 625 | 628 | ||||||||||||||||
|
Farmland
|
0 | 56 | 0 | 2 | 0 | ||||||||||||||||
|
HELOC
|
474 | 469 | 439 | 308 | 402 | ||||||||||||||||
|
1-4
Family properties
|
3,379 | 3,419 | 3,420 | 4,730 | 5,088 | ||||||||||||||||
|
CRE
- Owner occupied
|
4,628 | 2,329 | 465 | 326 | 618 | ||||||||||||||||
|
CRE
– Investor owned
|
707 | 629 | 4,674 | 3761 | 7,475 | ||||||||||||||||
|
Total
Real Estate
|
9,188 | 7,536 | 9,620 | 9,752 | 14,211 | ||||||||||||||||
|
C&I
|
3,031 | 2,477 | 2,720 | 4,511 | 4,167 | ||||||||||||||||
|
Consumer
|
64 | 94 | 61 | 136 | 165 | ||||||||||||||||
|
Non-accrual
Loans
|
$ | 12,283 | $ | 10,107 | $ | 12,401 | $ | 14,399 | $ | 18,543 | |||||||||||
|
OREO/OAO
|
1,538 | 1,947 | 1,651 | 1,616 | 1,775 | ||||||||||||||||
|
Non-performing
Assets
|
$ | 13,822 | $ | 12,054 | $ | 14,052 | $ | 16,016 | $ | 20,319 | |||||||||||
By virtue
of its aggressive asset resolution strategies, Rurban has managed to maintain
foreclosed real estate at a modest level, $1.5 million at year-end. Over the
past twelve months, Rurban charged off $8.32 million of non-performing loans,
and currently maintains an allowance for potential loan losses of $6.7 million.
The loan loss reserve provides 55 percent coverage of problem loans compared to
38 percent coverage at the prior year-end. Delinquent loans in the 30-89 day
category have averaged under $3 million throughout 2010.
|
Asset
Quality - Metrics
|
||||||||||||||||||||
|
($000s)
|
4Q 2010 | 3Q 2010 | 2Q 2010 | 1Q 2010 | 4Q 2009 | |||||||||||||||
|
Net
charge-offs
|
$ | 1,535 | $ | 1,448 | $ | 2,572 | $ | 2,346 | $ | 2,547 | ||||||||||
|
Net
charge-offs to avg. loans (Ann.)
|
1.41 | % | 1.32 | % | 2.28 | % | 2.05 | % | 2.19 | % | ||||||||||
|
NPAs/
Total assets
|
2.07 | % | 1.77 | % | 2.17 | % | 2.38 | % | 3.02 | % | ||||||||||
|
Allowance
for loan losses
|
$ | 6,715 | $ | 6,451 | $ | 7,001 | $ | 6,075 | $ | 7,030 | ||||||||||
|
Allowance
for loan losses / Loans
|
1.54 | % | 1.47 | % | 1.55 | % | 1.33 | % | 1.50 | % | ||||||||||
Capitalization
As of
December 31, 2010, the capital ratios of Rurban’s banking subsidiary, State
Bank, were all in excess of the regulatory thresholds for a “well-capitalized”
institution. The Bank’s Tier I Leverage ratio was 6.90 percent of total assets;
while Tier I and Total Risk-Based Capital ratios were 10.44 percent and 11.69
percent of risk-weighted assets, respectively. Holding company ratios have
improved after the decreases caused by the second quarter charge-offs at RDSI,
with estimated Tier 1 Leverage and Total Risk-Based Capital ratios at 7.00
percent and 11.80 percent, respectively. Total shares outstanding as of the
December 30, 2010 quarter-end were 4,861,779.
About
Rurban Financial Corp.
Based in
Defiance, Ohio, Rurban Financial Corp. is a financial services holding company
with two wholly-owned subsidiaries: The State Bank and Trust Company (State
Bank) and Rurbanc Data Services, Inc., dba RDSI Banking Systems (RDSI). State
Bank operates through 18 banking centers in seven Ohio counties, one center in
Indiana, and a loan production office in Franklin County, Ohio. State Bank
offers a full-range of financial services for consumers and small businesses,
including trust services, mortgage banking, commercial and agricultural lending.
RDSI provides data and item processing services to community banks located
primarily in the Midwest. Rurban’s common stock is listed on the NASDAQ Global
Market under the symbol RBNF.
Forward-Looking
Statements
This news
release contains forward-looking statements that are provided to assist in the
understanding of anticipated future financial performance. Forward-looking
statements provide current expectations or forecasts of future events and are
not guarantees of future performance. Examples of forward-looking statements
include: (a) projections of income or expense, earnings per share, the payments
or non-payments of dividends, capital structure, potential goodwill impairment
and other financial items; (b) statements of plans and objectives of Rurban or
our management or Board of Directors, including those relating to products or
services; and (c) statements of assumptions underlying such
statements. Words such as “anticipates,” “believes,” “plans,”
“intends,” “expects,” “projects,” “estimates,” “should,” “may,” “would be,”
“will allow,” “will likely result,” “will continue,” “will remain,” or other
similar expressions are intended to identify forward-looking statements, but are
not the exclusive means of identifying those statements.
Forward-looking
statements are based on management’s expectations and are subject to a number of
risks and uncertainties. Risks and uncertainties that could cause actual results
to differ materially from those expressed or implied in our forward-looking
statements include, without limitation: adverse changes in local and
national economic conditions, as well as fiscal and monetary policies, which
could adversely affect our earnings as our borrowers’ ability to repay loans and
the value of the collateral securing our loans declines; continued deterioration
in the residential loan market, especially in our local markets; deterioration
in credit quality and resulting increases in our loan losses, which would
adversely affect our earnings and financial condition; changes in interest rates
could reduce our interest margins; changes in the competitive environment for
loans, deposits and other financial services; risks and losses resulting from
the loss of data processing customers and wind-down of RDSI’s relationship with
New Core Holdings, Inc.; and potential adverse impacts on our business and
earnings as a result of changes in banking regulations or other regulatory or
legislative requirements affecting bank holding companies, including the
Dodd-Frank Wall Street Reform and Consumer Protection Act of
2010. You should refer to our periodic and current reports filed with
the Securities and Exchange Commission for additional information concerning
other important factors that could cause actual results to differ materially
from those expressed or implied in our forward-looking statements.
Undue
reliance should not be placed on forward-looking statements, which speak only as
of the date hereof. Except as may be required by law, Rurban
undertakes no obligation to update any forward-looking statement to reflect
unanticipated events or circumstances after the date on which the statement is
made.
Non-GAAP
Financial Measures
In
addition to results presented in accordance with GAAP, this release contains
certain non-GAAP financial measures. Rurban believes that providing certain
non-GAAP financial measures provides investors with information useful in
understanding Rurban’s financial performance, its performance trends and
financial position. Specifically, Rurban provides measures based on “core
operating earnings,” which excludes merger, integration and restructuring
expenses that are not reflective of on-going operations or not expected to
recur. These non-GAAP measures should not be considered a substitute for GAAP
basis measures and results.
Contact
Information:
At Rurban
Financial Corp.:
Anthony
V. Cosentino, CFO
419-785-3663
Tony.Cosentino@rurban.net
|
CONSOLIDATED
BALANCE SHEETS
|
||||||||
|
December
31, 2010 and December 31, 2009
|
||||||||
|
December 2010
|
December 2009
|
|||||||
|
ASSETS
|
||||||||
|
Cash
and due from banks
|
$ | 30,417,813 | $ | 24,824,785 | ||||
|
Federal
funds sold
|
- | - | ||||||
|
Cash
and cash equivalents
|
30,417,813 | 24,824,785 | ||||||
|
Available-for-sale
securities
|
132,762,058 | 105,083,112 | ||||||
|
Loans
held for sale
|
9,055,268 | 16,857,648 | ||||||
|
Loans,
net of unearned income
|
427,544,414 | 452,557,581 | ||||||
|
Allowance
for loan losses
|
(6,715,397 | ) | (7,030,178 | ) | ||||
|
Premises
and equipment, net
|
14,622,541 | 16,993,640 | ||||||
|
Purchased
software
|
1,021,036 | 5,338,319 | ||||||
|
Federal
Reserve and Federal Home Loan Bank Stock
|
3,748,250 | 3,748,250 | ||||||
|
Foreclosed
assets held for sale, net
|
1,538,307 | 1,767,953 | ||||||
|
Accrued
interest receivable
|
2,068,965 | 2,324,868 | ||||||
|
Goodwill
|
21,414,790 | 21,414,790 | ||||||
|
Core
deposits and other intangibles
|
4,176,976 | 4,977,513 | ||||||
|
Cash
value of life insurance
|
13,211,247 | 12,792,045 | ||||||
|
Other
assets
|
11,646,052 | 11,398,776 | ||||||
|
Total
assets
|
$ | 666,512,320 | $ | 673,049,102 | ||||
|
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
||||||||
|
Deposits
|
||||||||
|
Non
interest bearing demand
|
$ | 62,745,906 | $ | 57,229,795 | ||||
|
Interest
bearing NOW
|
105,708,472 | 87,511,973 | ||||||
|
Savings
|
47,234,595 | 43,321,364 | ||||||
|
Money
Market
|
84,635,537 | 86,621,953 | ||||||
|
Time
Deposits
|
215,353,232 | 216,557,067 | ||||||
|
Total
deposits
|
515,677,742 | 491,242,152 | ||||||
|
Notes
payable
|
3,290,471 | 2,146,776 | ||||||
|
Advances
from Federal Home Loan Bank
|
22,807,351 | 35,266,510 | ||||||
|
Fed
Funds Purchased
|
- | 5,000,000 | ||||||
|
Repurchase
Agreements
|
45,785,254 | 47,042,820 | ||||||
|
Trust
preferred securities
|
20,620,000 | 20,620,000 | ||||||
|
Accrued
interest payable
|
1,971,587 | 1,507,521 | ||||||
|
Other
liabilities
|
4,604,239 | 8,515,668 | ||||||
|
Total
liabilities
|
614,756,644 | 611,341,447 | ||||||
|
Shareholders'
Equity
|
||||||||
|
Common
stock
|
12,568,583 | 12,568,583 | ||||||
|
Additional
paid-in capital
|
15,235,206 | 15,186,042 | ||||||
|
Retained
earnings
|
24,533,684 | 34,415,316 | ||||||
|
Accumulated
other comprehensive income (loss)
|
1,187,514 | 1,307,025 | ||||||
|
Treasury
stock
|
(1,769,311 | ) | (1,769,311 | ) | ||||
|
Total
shareholders' equity
|
51,755,676 | 61,707,655 | ||||||
|
Total
liabilities and shareholders' equity
|
$ | 666,512,320 | $ | 673,049,102 | ||||
|
RURBAN
FINANCIAL CORP.
|
||||||||||||||||
|
CONSOLIDATED
STATEMENTS OF OPERATION - UNAUDITED
|
||||||||||||||||
|
Three
Months Ended
|
Twelve
Months Ended
|
|||||||||||||||
|
December 31,
|
December 31,
|
|||||||||||||||
|
2010
|
2009
|
2010
|
2009
|
|||||||||||||
|
Interest
income
|
||||||||||||||||
|
Loans
|
||||||||||||||||
|
Taxable
|
$ | 6,396,391 | $ | 6,717,690 | $ | 25,838,774 | $ | 27,272,465 | ||||||||
|
Tax-exempt
|
12,761 | 19,503 | 62,721 | 91,294 | ||||||||||||
|
Securities
|
||||||||||||||||
|
Taxable
|
587,516 | 923,990 | 2,266,719 | 4,082,639 | ||||||||||||
|
Tax-exempt
|
339,436 | 296,259 | 1,395,143 | 1,063,190 | ||||||||||||
|
Other
|
49 | 10,064 | 260 | 81,562 | ||||||||||||
|
Total
interest income
|
7,336,153 | 7,967,506 | 29,563,617 | 32,591,150 | ||||||||||||
|
Interest
expense
|
||||||||||||||||
|
Deposits
|
1,187,284 | 1,410,563 | 5,123,015 | 6,525,942 | ||||||||||||
|
Other
borrowings
|
19,043 | 43,395 | 120,188 | 134,943 | ||||||||||||
|
Retail
Repurchase Agreements
|
435,234 | 437,426 | 1,731,228 | 1,733,668 | ||||||||||||
|
Federal
Home Loan Bank advances
|
220,712 | 403,213 | 1,093,659 | 1,624,700 | ||||||||||||
|
Trust
preferred securities
|
355,304 | 388,272 | 1,533,806 | 1,573,293 | ||||||||||||
|
Total
interest expense
|
2,217,577 | 2,682,869 | 9,601,896 | 11,592,546 | ||||||||||||
|
Net
interest income
|
5,118,576 | 5,284,637 | 19,961,721 | 20,998,604 | ||||||||||||
|
Provision
for loan losses - Bank Only
|
1,798,890 | 3,546,056 | 7,587,603 | 5,738,098 | ||||||||||||
|
Provision
for loan losses - RDSI
|
- | - | 3,000,000 | - | ||||||||||||
|
Net
interest income after provision
|
||||||||||||||||
|
for
loan losses
|
3,319,686 | 1,738,581 | 9,374,118 | 15,260,506 | ||||||||||||
|
Non-interest
income
|
||||||||||||||||
|
Data
service fees
|
1,053,841 | 4,124,759 | 9,736,416 | 18,859,701 | ||||||||||||
|
Trust
fees
|
663,705 | 639,640 | 2,547,699 | 2,508,723 | ||||||||||||
|
Customer
service fees
|
614,572 | 684,241 | 2,460,733 | 2,607,985 | ||||||||||||
|
Net
gain on sales of loans
|
1,914,048 | 616,028 | 4,800,812 | 3,354,654 | ||||||||||||
|
Net
realized gain on sales of securities
|
(589 | ) | 482,729 | 450,885 | 960,320 | |||||||||||
|
Investment
securities recoveries
|
- | - | 73,774 | - | ||||||||||||
|
Loan
servicing fees
|
210,479 | 145,308 | 682,903 | 443,309 | ||||||||||||
|
Gain
(loss) on sale or disposal of assets
|
(40,837 | ) | (39,342 | ) | (199,903 | ) | (134,732 | ) | ||||||||
|
Other
income
|
181,637 | 520,716 | 664,328 | 995,126 | ||||||||||||
|
Total
non-interest income
|
4,596,856 | 7,174,079 | 21,217,647 | 29,595,086 | ||||||||||||
|
Non-interest
expense
|
||||||||||||||||
|
Salaries
and employee benefits
|
3,867,605 | 5,389,940 | 17,932,196 | 21,034,671 | ||||||||||||
|
Net
occupancy expense
|
533,363 | 554,484 | 2,172,749 | 2,318,538 | ||||||||||||
|
FDIC
Insurance expense
|
461,153 | 558,952 | 1,137,615 | 1,131,550 | ||||||||||||
|
Equipment
expense
|
1,010,194 | 2,109,715 | 6,433,537 | 7,463,352 | ||||||||||||
|
Fixed
asset impairment expense
|
- | - | 4,892,231 | - | ||||||||||||
|
Data
processing fees
|
108,145 | 114,094 | 743,538 | 609,876 | ||||||||||||
|
Professional
fees
|
722,103 | 1,045,149 | 2,545,552 | 2,891,607 | ||||||||||||
|
Marketing
expense
|
125,754 | 202,130 | 455,967 | 857,727 | ||||||||||||
|
Printing
and office supplies
|
83,860 | 165,713 | 453,702 | 601,626 | ||||||||||||
|
Telephone
and communication
|
198,606 | 409,176 | 1,191,497 | 1,622,077 | ||||||||||||
|
Postage
and delivery expense
|
333,016 | 444,426 | 1,748,545 | 2,079,463 | ||||||||||||
|
State,
local and other taxes
|
424,838 | 23,426 | 543,673 | 724,546 | ||||||||||||
|
Employee
expense
|
163,407 | 340,662 | 818,375 | 1,151,438 | ||||||||||||
|
OREO
Impairment
|
756,517 | - | 971,517 | - | ||||||||||||
|
Other
expenses
|
433,814 | 738,426 | 4,393,772 | 2,647,018 | ||||||||||||
|
Total
non-interest expense
|
9,222,375 | 12,096,293 | 46,434,466 | 45,133,489 | ||||||||||||
|
Income
(loss) before income tax expense
|
(1,305,833 | ) | (3,183,633 | ) | (15,842,701 | ) | (277,897 | ) | ||||||||
|
Income
tax expense (benefit)
|
(453,114 | ) | (1,299,303 | ) | (5,961,068 | ) | (660,388 | ) | ||||||||
|
Net
income (loss)
|
$ | (852,719 | ) | $ | (1,884,330 | ) | $ | (9,881,633 | ) | $ | 382,491 | |||||
|
Earnings
(loss) per common share:
|
||||||||||||||||
|
Basic
|
$ | (0.18 | ) | $ | (0.39 | ) | $ | (2.03 | ) | $ | 0.07 | |||||
|
Diluted
|
$ | (0.18 | ) | $ | (0.39 | ) | $ | (2.03 | ) | $ | 0.07 | |||||
|
RURBAN
FINANCIAL CORP.
|
||||||||||||||||
|
CONSOLIDATED
FINANCIAL HIGHLIGHTS
|
||||||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
Three
Months Ended
|
Twelve
Months Ended
|
|||||||||||||||
|
December 31,
|
December 31,
|
|||||||||||||||
|
(dollars
in thousands except per share data)
|
2010
|
2009
|
2010
|
2009
|
||||||||||||
|
EARNINGS
|
||||||||||||||||
|
Net
interest income
|
$ | 5,119 | $ | 5,285 | $ | 19,962 | $ | 20,999 | ||||||||
|
Provision
for loan loss (Bank Only)
|
$ | 1,799 | $ | 3,546 | $ | 7,588 | $ | 5,738 | ||||||||
|
Provision for loan loss (RDSI)
|
$ | 0 | $ | 0 | $ | 3,000 | $ | 0 | ||||||||
|
Non-interest
income
|
$ | 4,597 | $ | 7,174 | $ | 21,218 | $ | 29,595 | ||||||||
|
Revenue
(net interest income plus non-interest income)
|
$ | 9,716 | $ | 12,459 | $ | 41,180 | $ | 50,594 | ||||||||
|
Non-interest
expense
|
$ | 9,222 | $ | 12,096 | $ | 46,434 | $ | 45,133 | ||||||||
|
Pre-tax
income (loss)
|
(1,306 | ) | (3,184 | ) | (15,843 | ) | (278 | ) | ||||||||
|
Net
income (loss)
|
$ | (853 | ) | $ | (1,884 | ) | $ | (9,882 | ) | $ | 382 | |||||
|
PER
SHARE DATA
|
||||||||||||||||
|
Basic
earnings (loss) per share
|
$ | (0.18 | ) | $ | (0.39 | ) | $ | (2.03 | ) | $ | 0.07 | |||||
|
Diluted
earnings (loss) per share
|
$ | (0.18 | ) | $ | (0.39 | ) | $ | (2.03 | ) | $ | 3.07 | |||||
|
Book
value per share
|
$ | 10.65 | $ | 12.69 | $ | 10.65 | $ | 12.69 | ||||||||
|
Tangible
Equity
|
$ | 24,657 | $ | 33,832 | $ | 24,657 | $ | 33,832 | ||||||||
|
Tangible
book value per share
|
$ | 5.07 | $ | 6.96 | $ | 5.07 | $ | 6.96 | ||||||||
|
Cash
dividend per share
|
$ | 0.00 | $ | 0.09 | $ | 0.00 | $ | 0.36 | ||||||||
|
PERFORMANCE
RATIOS
|
||||||||||||||||
|
Return
on average assets
|
(0.50 | %) | (1.11 | %) | (1.47 | %) | 0.06 | % | ||||||||
|
Return
on average equity
|
(6.38 | %) | (11.81 | %) | (17.25 | %) | 0.60 | % | ||||||||
|
Return
on tangible equity
|
(13.84 | %) | (22.27 | %) | (40.08 | %) | 1.13 | % | ||||||||
|
Net
interest margin (tax equivalent)
|
3.76 | % | 3.77 | % | 3.67 | % | 3.79 | % | ||||||||
|
Net
interest margin - banking group
|
3.87 | % | 3.97 | % | 3.92 | % | 4.00 | % | ||||||||
|
Non-interest
expense / Average assets
|
5.37 | % | 7.11 | % | 6.89 | % | 6.76 | % | ||||||||
|
Efficiency
Ratio - bank (non-GAAP)
|
71.85 | % | 71.51 | % | 77.22 | % | 74.15 | % | ||||||||
|
MARKET
DATA PER SHARE
|
||||||||||||||||
|
Market
value per share -- Period end
|
$ | 3.97 | $ | 6.84 | $ | 3.97 | $ | 6.84 | ||||||||
|
Market
as a % of book
|
37 | % | 54 | % | 37 | % | 54 | % | ||||||||
|
Cash
dividend yield
|
0.00 | % | 5.26 | % | 0.00 | % | 5.26 | % | ||||||||
|
Period-end
common shares outstanding (000)
|
4,862 | 4,862 | 4,862 | 4,862 | ||||||||||||
|
Common
stock market capitalization ($000)
|
$ | 19,301 | $ | 33,255 | $ | 19,301 | $ | 33,255 | ||||||||
|
CAPITAL
& LIQUIDITY
|
||||||||||||||||
|
Equity
to assets
|
7.8 | % | 9.2 | % | 7.9 | % | 9.2 | % | ||||||||
|
Tier
1 leverage Ratio (Estimate)
|
7.0 | % | 8.3 | % | 7.0 | % | 8.3 | % | ||||||||
|
Tier
1 risk-based capital ratio (Estimate)
|
10.5 | % | 11.4 | % | 10.5 | % | 11.4 | % | ||||||||
|
Total
risk-based capital ratio (Estimate)
|
11.8 | % | 12.7 | % | 11.8 | % | 12.7 | % | ||||||||
|
ASSET
QUALITY
|
||||||||||||||||
|
Gross
charge-offs (Bank Only)
|
$ | 1,591 | $ | 2,566 | $ | 8,334 | $ | 3,875 | ||||||||
|
Net
charge-offs (Bank Only)
|
$ | 1,535 | $ | 2,547 | $ | 7,902 | $ | 3,826 | ||||||||
|
Net
loan charge-offs (Ann.) / Average loans
|
1.41 | % | 2.19 | % | 1.77 | % | 0.84 | % | ||||||||
|
Non-accruing
loans
|
$ | 12,283 | $ | 18,543 | $ | 12,283 | $ | 18,543 | ||||||||
|
OREO
/ OAOs
|
$ | 1,538 | $ | 1,775 | $ | 1,538 | $ | 1,775 | ||||||||
|
Non-performing
assets
|
$ | 13,822 | $ | 20,319 | $ | 13,822 | $ | 20,319 | ||||||||
|
Non-performing
assets / Total assets
|
2.07 | % | 3.02 | % | 2.07 | % | 3.02 | % | ||||||||
|
Allowance
for loan losses / Total loans
|
1.54 | % | 1.50 | % | 1.54 | % | 1.50 | % | ||||||||
|
Allowance
for loan losses / Non-performing Loans
|
54.7 | % | 37.9 | % | 54.7 | % | 34.6 | % | ||||||||
|
END
OF PERIOD BALANCES
|
||||||||||||||||
|
Total
loans, net of unearned income (Includes Loans HFS)
|
$ | 436,600 | $ | 469,415 | $ | 436,600 | $ | 469,415 | ||||||||
|
Allowance
for loan loss
|
$ | 6,715 | $ | 7,030 | $ | 6,715 | $ | 7,030 | ||||||||
|
Total
assets
|
$ | 666,512 | $ | 673,049 | $ | 666,512 | $ | 673,049 | ||||||||
|
Deposits
|
$ | 515,678 | $ | 491,242 | $ | 515,678 | $ | 491,242 | ||||||||
|
Stockholders'
equity
|
$ | 51,756 | $ | 61,708 | $ | 51,756 | $ | 61,708 | ||||||||
|
Full-time
equivalent employees (Bank Only)
|
196 | 190 | 196 | 190 | ||||||||||||
|
Full-time
equivalent employees (Consolidated Total)
|
242 | 315 | 242 | 315 | ||||||||||||
|
AVERAGE
BALANCES
|
||||||||||||||||
|
Loans
|
$ | 435,825 | $ | 464,618 | $ | 445,700 | $ | 453,787 | ||||||||
|
Total
earning assets
|
$ | 563,609 | $ | 577,263 | $ | 564,556 | $ | 570,070 | ||||||||
|
Total
assets
|
$ | 687,058 | $ | 680,121 | $ | 673,781 | $ | 667,470 | ||||||||
|
Deposits
|
$ | 534,168 | $ | 499,317 | $ | 509,783 | $ | 489,527 | ||||||||
|
Stockholders'
equity
|
$ | 53,478 | $ | 63,800 | $ | 57,281 | $ | 63,576 | ||||||||
|
RURBAN
FINANCIAL CORP.
|
||||||||||||||||||||
|
CONSOLIDATED
FINANCIAL HIGHLIGHTS
|
||||||||||||||||||||
|
(Unaudited)
|
||||||||||||||||||||
|
(dollars
in thousands except per share data)
|
4th
Qtr 2010
|
3rd
Qtr 2010
|
2nd
Qtr 2010
|
1st
Qtr 2010
|
4th
Qtr 2009
|
|||||||||||||||
|
EARNINGS
|
||||||||||||||||||||
|
Net
interest income
|
$ | 5,119 | $ | 4,881 | $ | 5,058 | $ | 4,904 | $ | 5,285 | ||||||||||
|
Provision
for loan loss (Bank Only)
|
$ | 1,799 | $ | 899 | $ | 3,499 | $ | 1,391 | $ | 3,546 | ||||||||||
|
Provision
for loan loss (RDSI)
|
$ | - | $ | - | $ | 3,000 | $ | - | $ | - | ||||||||||
|
Non-interest
income
|
$ | 4,597 | $ | 5,127 | $ | 4,711 | $ | 6,783 | $ | 7,174 | ||||||||||
|
Revenue
(net interest income plus non-interest income)
|
$ | 9,716 | $ | 10,008 | $ | 9,769 | $ | 11,687 | $ | 12,459 | ||||||||||
|
Non-interest
expense
|
$ | 9,222 | $ | 9,331 | $ | 16,089 | $ | 11,792 | $ | 12,096 | ||||||||||
|
Pre-tax
income (loss)
|
$ | (1,306 | ) | $ | (222 | ) | $ | (12,819 | ) | $ | (1,496 | ) | $ | (3,184 | ) | |||||
|
Net
income (loss)
|
$ | (853 | ) | $ | 26 | $ | (8,207 | ) | $ | (848 | ) | $ | (1,884 | ) | ||||||
|
PER
SHARE DATA
|
||||||||||||||||||||
|
Basic
earnings (loss) per share
|
$ | (0.18 | ) | $ | 0.01 | $ | (1.69 | ) | $ | (0.17 | ) | $ | (0.39 | ) | ||||||
|
Diluted
earnings (loss) per share
|
$ | (0.18 | ) | $ | 0.01 | $ | (1.69 | ) | $ | (0.17 | ) | $ | (0.39 | ) | ||||||
|
Book
value per share
|
$ | 10.65 | $ | 11.12 | $ | 10.94 | $ | 12.72 | $ | 12.69 | ||||||||||
|
Tangible
Equity
|
$ | 24,657 | $ | 25,398 | $ | 25,283 | $ | 33,212 | $ | 33,832 | ||||||||||
|
Tangible
book value per share
|
$ | 5.07 | $ | 5.22 | $ | 5.20 | $ | 6.83 | $ | 6.96 | ||||||||||
|
Cash
dividend per share
|
$ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.09 | ||||||||||
|
PERFORMANCE
RATIOS
|
||||||||||||||||||||
|
Return
on average assets
|
(0.50 | %) | 0.02 | % | (4.92 | %) | (0.51 | %) | (1.11 | %) | ||||||||||
|
Return
on average equity
|
(6.38 | %) | 0.19 | % | (55.74 | %) | (5.49 | %) | (11.81 | %) | ||||||||||
|
Return
on tangible equity
|
(13.84 | %) | 0.41 | % | (129.84 | %) | (10.21 | %) | (22.27 | %) | ||||||||||
|
Net
interest margin (tax equivalent)
|
3.76 | % | 3.66 | % | 3.72 | % | 3.58 | % | 3.77 | % | ||||||||||
|
Net
interest margin (Bank Only)
|
3.87 | % | 3.77 | % | 4.00 | % | 3.82 | % | 3.97 | % | ||||||||||
|
Non-interest
expense / Average assets
|
5.37 | % | 5.61 | % | 9.57 | % | 7.11 | % | 7.11 | % | ||||||||||
|
Efficiency
Ratio - bank (non-GAAP)
|
71.85 | % | 80.95 | % | 81.97 | % | 73.22 | % | 71.51 | % | ||||||||||
|
MARKET
DATA PER SHARE
|
||||||||||||||||||||
|
Market
value per share -- Period end
|
$ | 3.97 | $ | 3.18 | $ | 4.04 | $ | 6.80 | $ | 6.84 | ||||||||||
|
Market
as a % of book
|
37 | % | 29 | % | 37 | % | 53 | % | 54 | % | ||||||||||
|
Cash
dividend yield
|
0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 5.26 | % | ||||||||||
|
Period-end
common shares outstanding (000)
|
4,862 | 4,862 | 4,862 | 4,862 | 4,862 | |||||||||||||||
|
Common
stock market capitalization ($000)
|
$ | 19,301 | $ | 15,460 | $ | 19,642 | $ | 33,060 | $ | 33,255 | ||||||||||
|
CAPITAL
& LIQUIDITY
|
||||||||||||||||||||
|
Equity
to assets
|
7.8 | % | 7.9 | % | 8.2 | % | 9.0 | % | 9.2 | % | ||||||||||
|
Tier
1 leverage Ratio (Estimate) (Consolidated)
|
7.0 | % | 7.1 | % | 7.1 | % | 8.4 | % | 8.3 | % | ||||||||||
|
Tier
1 risk-based capital ratio (Estimate) (Consolidated)
|
10.5 | % | 10.4 | % | 10.0 | % | 11.7 | % | 11.4 | % | ||||||||||
|
Total
risk-based capital ratio (Estimate) (Consolidated)
|
11.8 | % | 11.6 | % | 11.2 | % | 12.9 | % | 12.7 | % | ||||||||||
|
ASSET
QUALITY
|
||||||||||||||||||||
|
Gross
charge-offs (Bank Only)
|
$ | 1,591 | $ | 1,583 | $ | 2,680 | $ | 2,480 | $ | 2,566 | ||||||||||
|
Net
charge-offs (Bank Only)
|
$ | 1,535 | $ | 1,448 | $ | 2,572 | $ | 2,346 | $ | 2,547 | ||||||||||
|
Net
loan charge-offs (Ann.) / Average loans
|
1.41 | % | 1.32 | % | 2.28 | % | 2.05 | % | 2.19 | % | ||||||||||
|
Non-accruing
loans
|
$ | 12,283 | $ | 10,107 | $ | 12,401 | $ | 14,399 | $ | 18,543 | ||||||||||
|
OREO
/ OAOs
|
$ | 1,538 | $ | 1,947 | $ | 1,651 | $ | 1,616 | $ | 1,775 | ||||||||||
|
Non-performing
assets
|
$ | 13,822 | $ | 12,054 | $ | 14,052 | $ | 16,016 | $ | 20,319 | ||||||||||
|
Non-performing
assets / Total assets
|
2.07 | % | 1.77 | % | 2.17 | % | 2.38 | % | 3.02 | % | ||||||||||
|
Allowance
for loan losses / Total loans
|
1.54 | % | 1.47 | % | 1.55 | % | 1.33 | % | 1.50 | % | ||||||||||
|
Allowance
for loan losses / Non-performing Loans
|
54.7 | % | 63.8 | % | 56.4 | % | 42.2 | % | 37.9 | % | ||||||||||
|
END
OF PERIOD BALANCES
|
||||||||||||||||||||
|
Total
loans, net of unearned income (Includes Loans HFS)
|
$ | 436,600 | $ | 438,450 | $ | 452,888 | $ | 456,552 | $ | 469,415 | ||||||||||
|
Allowance
for loan loss
|
$ | 6,715 | $ | 6,451 | $ | 7,001 | $ | 6,075 | $ | 7,030 | ||||||||||
|
Total
assets
|
$ | 666,512 | $ | 681,190 | $ | 646,347 | $ | 673,804 | $ | 673,049 | ||||||||||
|
Deposits
|
$ | 515,678 | $ | 522,321 | $ | 481,763 | $ | 498,946 | $ | 491,242 | ||||||||||
|
Stockholders'
equity
|
$ | 51,756 | $ | 54,068 | $ | 53,201 | $ | 60,855 | $ | 61,708 | ||||||||||
|
Full-time
equivalent employees (Bank Only)
|
196 | 198 | 197 | 199 | 190 | |||||||||||||||
|
Full-time
equivalent employees (Consolidated Total)
|
242 | 257 | 270 | 311 | 315 | |||||||||||||||
|
AVERAGE
BALANCES
|
||||||||||||||||||||
|
Loans
|
$ | 435,825 | $ | 438,419 | $ | 451,536 | $ | 458,423 | $ | 464,618 | ||||||||||
|
Total
earning assets
|
$ | 563,609 | $ | 554,685 | $ | 566,618 | $ | 567,719 | $ | 577,263 | ||||||||||
|
Total
assets
|
$ | 687,058 | $ | 664,981 | $ | 667,295 | $ | 662,979 | $ | 680,121 | ||||||||||
|
Deposits
|
$ | 534,168 | $ | 513,448 | $ | 502,102 | $ | 487,767 | $ | 499,317 | ||||||||||
|
Stockholders'
equity
|
$ | 53,478 | $ | 54,154 | $ | 58,891 | $ | 61,836 | $ | 63,800 | ||||||||||
|
Rurban
Financial Corp.
|
||||||||||||||||||||
|
Segment
Reporting
|
||||||||||||||||||||
|
Fourth
Quarter Ended December 31, 2010
|
||||||||||||||||||||
|
($
in Thousands)
|
||||||||||||||||||||
|
Total
Banking
|
Data
Processing
|
Parent
Company and Other
|
Elimination
Entries
|
Rurban
Financial Corp.
|
||||||||||||||||
|
Income Statement
Measures
|
||||||||||||||||||||
|
Interest
Income
|
$ | 7,370 | $ | - | $ | 31 | $ | (64 | ) | $ | 7,337 | |||||||||
|
Interest
Expense
|
1,844 | 86 | 352 | (64 | ) | 2,218 | ||||||||||||||
|
Net
Interest Income
|
5,526 | (86 | ) | (321 | ) | - | 5,119 | |||||||||||||
|
Provision
For Loan Loss
|
1,799 | - | - | - | 1,799 | |||||||||||||||
|
Non-interest
Income
|
3,533 | 1,458 | 36 | (430 | ) | 4,597 | ||||||||||||||
|
Non-interest
Expense
|
6,669 | 2,505 | 478 | (430 | ) | 9,222 | ||||||||||||||
|
Net
Income QTD
|
$ | 517 | $ | (870 | ) | $ | (500 | ) | $ | - | $ | (853 | ) | |||||||
|
Performance
Measures
|
||||||||||||||||||||
|
Average Assets
-QTD
|
$ | 677,517 | $ | 10,534 | $ | 77,078 | $ | (78,071 | ) | $ | 687,058 | |||||||||
|
ROAA
|
0.31 | % | (33.04 | %) | - | - | (0.50 | %) | ||||||||||||
|
Average
Equity - QTD
|
$ | 67,505 | $ | 5,512 | $ | 53,478 | $ | (73,017 | ) | $ | 53,478 | |||||||||
|
ROAE
|
3.06 | % | (63.14 | %) | - | - | (6.38 | %) | ||||||||||||
|
Efficiency
Ratio - %
|
71.85 | % | - | - | - | 92.86 | % | |||||||||||||
|
Average
Loans - QTD
|
$ | 437,988 | $ | - | $ | 2,000 | $ | (4,163 | ) | $ | 435,825 | |||||||||
|
Average
Deposits - QTD
|
$ | 535,060 | $ | - | $ | - | $ | (892 | ) | $ | 534,168 | |||||||||
|
Rurban
Financial Corp.
|
||||||||||||||||||||
|
Segment
Reporting
|
||||||||||||||||||||
|
Twelve
Months Ended December 31, 2010
|
||||||||||||||||||||
|
($
in Thousands)
|
||||||||||||||||||||
|
Total
Banking
|
Data
Processing
|
Parent
Company and Other
|
Elimination
Entries
|
Rurban
Financial Corp.
|
||||||||||||||||
|
Income Statement
Measures
|
||||||||||||||||||||
|
Interest
Income
|
$ | 29,797 | $ | (82 | ) | $ | 102 | $ | (253 | ) | $ | 29,564 | ||||||||
|
Interest
Expense
|
7,953 | 372 | 1,530 | (253 | ) | 9,602 | ||||||||||||||
|
Net
Interest Income
|
21,844 | (454 | ) | (1,428 | ) | - | 19,962 | |||||||||||||
|
Provision
For Loan Loss
|
7,588 | 3,000 | - | - | 10,588 | |||||||||||||||
|
Non-interest
Income
|
11,457 | 11,024 | 563 | (1,826 | ) | 21,218 | ||||||||||||||
|
Non-interest
Expense
|
26,357 | 20,068 | 1,835 | (1,826 | ) | 46,434 | ||||||||||||||
|
Net
Income YTD
|
$ | 124 | $ | (8,249 | ) | $ | (1,757 | ) | $ | - | $ | (9,882 | ) | |||||||
|
Performance
Measures
|
||||||||||||||||||||
|
Average Assets
- YTD
|
$ | 659,358 | $ | 15,846 | $ | 80,399 | $ | (81,823 | ) | $ | 673,781 | |||||||||
|
ROAA
|
0.02 | % | (52.06 | %) | - | - | (1.47 | %) | ||||||||||||
|
Average
Equity - YTD
|
$ | 67,495 | $ | 8,895 | $ | 57,281 | $ | (76,390 | ) | $ | 57,281 | |||||||||
|
ROAE
|
0.18 | % | (92.74 | %) | - | - | (17.25 | %) | ||||||||||||
|
Efficiency
Ratio - %
|
77.22 | % | - | - | - | 110.81 | % | |||||||||||||
|
Average
Loans - YTD
|
$ | 446,815 | $ | 1,388 | $ | 1,692 | $ | (4,195 | ) | $ | 445,700 | |||||||||
|
Average
Deposits - YTD
|
$ | 511,020 | $ | - | $ | - | $ | (1,237 | ) | $ | 509,783 | |||||||||
|
Rurban
Financial Corp.
|
||||||||||||||||||||||
|
Proforma
Performance Measurement
|
||||||||||||||||||||||
|
Quarterly
Comparison - Fourth Quarter 2010
|
||||||||||||||||||||||
|
($
in Thousands)
|
||||||||||||||||||||||
|
Total
Banking
|
Data
Processing
|
Parent
Company and Other
|
Elimination
Entries
|
Rurban
Financial Corp.
|
||||||||||||||||||
|
Revenue
|
||||||||||||||||||||||
|
4Q
10
|
$ | 9,059 | $ | 1,372 | $ | (285 | ) | $ | (430 | ) | $ | 9,716 | ||||||||||
|
3Q10
|
$ | 8,433 | $ | 2,236 | $ | (340 | ) | $ | (321 | ) | $ | 10,008 | ||||||||||
|
2Q10
|
$ | 7,750 | $ | 2,625 | $ | (197 | ) | $ | (407 | ) | $ | 9,772 | ||||||||||
|
1Q10
|
$ | 8,062 | $ | 4,338 | $ | (52 | ) | $ | (661 | ) | $ | 11,687 | ||||||||||
|
4Q09
|
$ | 8,808 | $ | 4,430 | $ | 6 | $ | (785 | ) | $ | 12,459 | |||||||||||
|
4th
Quarter Comparison
|
$ | 251 | $ | (3,058 | ) | $ | (291 | ) | $ | 355 | $ | (2,743 | ) | |||||||||
|
Non-interest
Expenses
|
||||||||||||||||||||||
|
4Q
10
|
$ | 6,669 | $ | 2,505 | $ | 478 | $ | (430 | ) | $ | 9,222 | |||||||||||
|
3Q10
|
$ | 6,986 | $ | 2,318 | $ | 348 | $ | (321 | ) | $ | 9,331 | |||||||||||
|
2Q10
|
$ | 6,516 | $ | 9,576 | $ | 278 | $ | (407 | ) | $ | 15,963 | |||||||||||
|
1Q10
|
$ | 6,061 | $ | 5,669 | $ | 730 | $ | (668 | ) | $ | 11,792 | |||||||||||
|
4Q09
|
$ | 6,459 | $ | 5,204 | $ | 1,218 | $ | (785 | ) | $ | 12,096 | |||||||||||
|
4th
Quarter Comparison
|
$ | 210 | $ | (2,699 | ) | $ | (740 | ) | $ | - | $ | (2,874 | ) | |||||||||
|
Net Income
(loss)
|
||||||||||||||||||||||
|
4Q
10
|
$ | 517 | $ | (870 | ) | $ | (500 | ) | $ | - | $ | (853 | ) | |||||||||
|
3Q10
|
$ | 548 | $ | (54 | ) | $ | (468 | ) | $ | - | $ | 26 | ||||||||||
|
2Q10
|
$ | (1,479 | ) | $ | (6,446 | ) | $ | (282 | ) | $ | - | $ | (8,207 | ) | ||||||||
|
1Q10
|
$ | 538 | $ | (879 | ) | $ | (507 | ) | $ | - | $ | (848 | ) | |||||||||
|
4Q09
|
$ | (577 | ) | $ | (509 | ) | $ | (798 | ) | $ | - | $ | (1,884 | ) | ||||||||
|
4th
Quarter Comparison
|
$ | 1,094 | $ | (361 | ) | $ | 298 | $ | - | $ | 1,031 | |||||||||||
|
Average
Assets
|
||||||||||||||||||||||
|
4Q
10
|
$ | 677,517 | $ | 10,534 | $ | 77,078 | $ | (78,071 | ) | $ | 687,058 | |||||||||||
|
3Q10
|
$ | 655,555 | $ | 10,766 | $ | 77,437 | $ | (78,777 | ) | $ | 664,981 | |||||||||||
|
2Q10
|
$ | 650,572 | $ | 18,800 | $ | 81,995 | $ | (84,071 | ) | $ | 667,296 | |||||||||||
|
1Q10
|
$ | 642,556 | $ | 22,272 | $ | 84,377 | $ | (86,226 | ) | $ | 662,979 | |||||||||||
|
4Q09
|
$ | 659,674 | $ | 22,368 | $ | 85,392 | $ | (87,313 | ) | $ | 680,121 | |||||||||||
|
4th
Quarter Comparison
|
$ | 17,843 | $ | (11,834 | ) | $ | (8,314 | ) | $ | - | $ | 6,937 | ||||||||||
|
ROAA
|
||||||||||||||||||||||
|
4Q
10
|
0.31 | % | (33.04 | %) | - | - | (0.50 | %) | ||||||||||||||
|
3Q10
|
0.33 | % | (2.01 | %) | - | - | (0.02 | %) | ||||||||||||||
|
2Q10
|
(0.83 | %) | (137.13 | %) | - | - | (4.84 | %) | ||||||||||||||
|
1Q10
|
0.33 | % | (15.79 | %) | - | - | (0.51 | %) | ||||||||||||||
|
4Q09
|
(0.35 | %) | (9.10 | %) | - | - | (1.11 | %) | ||||||||||||||
|
4th
Quarter Comparison
|
0.66 | % | (23.94 | %) | - | - | 0.61 | % | ||||||||||||||
|
Average
Equity
|
||||||||||||||||||||||
|
4Q
10
|
$ | 67,505 | $ | 5,512 | $ | 53,478 | $ | (73,017 | ) | $ | 53,478 | |||||||||||
|
3Q10
|
$ | 67,430 | $ | 5,876 | $ | 54,154 | $ | (73,306 | ) | $ | 54,154 | |||||||||||
|
2Q10
|
$ | 67,370 | $ | 10,492 | $ | 58,891 | $ | (77,862 | ) | $ | 58,891 | |||||||||||
|
1Q10
|
$ | 67,701 | $ | 13,045 | $ | 61,836 | $ | (80,746 | ) | $ | 61,836 | |||||||||||
|
4Q09
|
$ | 69,066 | $ | 13,969 | $ | 63,800 | $ | (83,035 | ) | $ | 63,800 | |||||||||||
|
4th
Quarter Comparison
|
$ | (1,561 | ) | $ | (8,457 | ) | $ | (10,322 | ) | $ | - | $ | (10,322 | ) | ||||||||
|
ROAE
|
||||||||||||||||||||||
|
4Q
10
|
3.06 | % | (63.14 | %) | - | - | (6.38 | %) | ||||||||||||||
|
3Q10
|
3.25 | % | (3.68 | %) | - | - | 0.19 | % | ||||||||||||||
|
2Q10
|
(8.02 | %) | (245.72 | %) | - | - | (54.87 | %) | ||||||||||||||
|
1Q10
|
3.18 | % | (26.95 | %) | - | - | (5.49 | %) | ||||||||||||||
|
4Q09
|
(3.34 | %) | (14.57 | %) | - | - | (11.81 | %) | ||||||||||||||
|
4th
Quarter Comparison
|
6.40 | % | (48.57 | %) | - | - | 5.43 | % | ||||||||||||||
|
Efficiency
Ratio
|
||||||||||||||||||||||
|
4Q
10
|
71.85 | % | 179.68 | % | - | - | 92.86 | % | ||||||||||||||
|
3Q10
|
80.95 | % | 102.16 | % | - | - | 91.24 | % | ||||||||||||||
|
2Q10
|
81.97 | % | 363.24 | % | - | - | 161.01 | % | ||||||||||||||
|
1Q10
|
73.22 | % | 129.42 | % | - | - | 99.06 | % | ||||||||||||||
|
4Q09
|
71.51 | % | 116.27 | % | - | - | 95.36 | % | ||||||||||||||
|
4th
Quarter Comparison
|
0.34 | % | 63.41 | % | - | - | (2.50 | %) | ||||||||||||||