Exhibit 99.1

 

 

 

Rurban Financial Corp. Reports 2012 First Quarter Results

 

DEFIANCE, Ohio, April 24, 2012 (GlobeNewswire) -- Rurban Financial Corp. (NASDAQ: RBNF) (“Rurban” or “the Company”), a diversified financial services company providing full-service community banking, mortgage banking, wealth management and item processing services, today reported earnings for the first quarter ended March 31, 2012.

 

Consolidated earnings for Rurban Financial Corp. include the results of Rurban’s Banking Group, consisting primarily of The State Bank and Trust Company (“State Bank” or “the Bank”), and Rurban's data services subsidiary, Rurbanc Data Services, Inc. (dba “RDSI Banking Systems” or "RDSI"). For the quarter ended March 31, 2012, Rurban reported net income of $0.97 million, or $0.20 per diluted share, compared to net income of $11,000, or $0.00 per diluted share for the quarter ended March 31, 2011, and net income of $0.27 million, or $0.06 per diluted share, for the quarter ended December 31, 2011.

 

Key items for the 2012 first quarter include:

 

·

Rurban continues to build profitability, reporting a fifth consecutive quarter of positive earnings and a quarterly ROA of 61 basis points.

 

·

Noninterest income benefited from strong first quarter 2012 mortgage banking activity. Net mortgage banking revenue of $1.5 million was the second strongest quarter ever, based on strong loan sales ($64.2 million), a fairly robust spread (1.84 percent) and a favorable mortgage servicing valuation adjustment due to lower refinancings.

 

·

Quarterly noninterest expense appears to have stabilized at approximately $6.7 million, reflecting a halt to the downsizing of RDSI. Full-time equivalent employees declined by 24, or 11 percent, since March 31, 2011 and by seven since year-end 2011.

 

·

Portfolio loans increased $17.6 million, or 4.2 percent, over the past twelve months; this loan growth consisted primarily of commercial real estate and commercial non-real estate loans.

 

 

 

·

Year over year, nonperforming assets declined by $4.4 million, or 31 percent, to $9.9 million, or 1.54 percent of total assets. Reserve coverage of nonperforming loans at quarter-end was 82 percent compared to 49 percent at March 31, 2011.

 

·

On a consolidated level, Rurban’s tangible leverage improved by 75 basis points from the prior year. At 4.88 percent, it still remains a focus of management attention.

 

Mark Klein, President and Chief Executive Officer of Rurban Financial Corp., stated, “This has been another encouraging quarter for us. We have seen greater stability in our earnings stream, as well as stronger profitability. Our entire organization appears to be moving in a positive direction, perhaps at different rates, but still making discrete progress step by step.

 

“Loans are growing at a comfortable rate, along with low-cost deposits. Our fee-based businesses continue to make a strong contribution; this quarter, they provided 42 percent of total revenue. Our mortgage bankers have started off the year with an exceptionally strong first quarter for originations, assisted by a less frenetic level of refinancing activity. This has provided the basis for near-record mortgage banking revenue in the first quarter of the year. We are in the process of expanding our highly successful Columbus mortgage lending operation, and we will shortly have a second office in place.

 

“Although we have stepped up virtually every source of revenue, our data services operation, RDSI, still lags behind, constrained by regulatory and other factors from marketing its expanded product line. The Bank has taken data processing in-house, and will continue to provide what RDSI has done for us in the past. We believe this will be a more efficient solution for all parties concerned. With a more modest infrastructure firmly in place, and management realigned to focus on item processing, RDSI is solidly positioned to move ahead once the constraints have been lifted.

 

“We look to the rest of the year with tempered optimism. We have made tremendous progress by leveraging upon the strengths of our people: to build revenue, to create greater efficiencies, and to connect in meaningful ways with our customers. We plan to continue down this successful path.”

 

RESULTS OF OPERATIONS

 

Consolidated Revenue

 

Total operating revenue, consisting of net interest income fully tax equivalent (FTE) and noninterest income from operations, was $8.5 million for the first quarter of 2012, up $0.53 million, or 6.7 percent, from the first quarter of 2011, but lower by $0.3 million, or 3.8 percent, from the linked quarter.

 

Net interest income (FTE) for 2012 first quarter was $5.0 million, down one percent year over year, from the combined impact of minor declines in earning assets and net interest margin. The net interest margin (FTE) was 3.60 percent for the first quarter 2012 compared to 3.61 percent for the first quarter of 2011. Continued downward pressure on earning asset yields is driving margin compression, since the cost of interest-bearing liabilities has stabilized relative to the continued decline in earning asset yields.

 

 

 

Noninterest Income

 

Noninterest income was $3.6 million for the first quarter of 2012, an increase of $0.7 million, or 25.1 percent, from the $2.9 million reported for the first quarter 2011. Noninterest income benefited primarily from strong mortgage loan sales for the first quarter of 2012 compared to the year-earlier first quarter.

 

Data Services

($’s in thousands)		Mar. 2012				Dec. 2011				Sep. 2011				Jun. 2011				Mar. 2011
Data Processing & Network Services			177				320				292				302				367
Payment Solutions			708				720				784				823				927
Contract Buyout			551				-				-				519				-
RDSI Gross Revenue			1,436				1,040				1,076				1,644				1,294
Less: Intercompany			(793	)			(369	)			(333	)			(340	)			(382	)
Net Data Services Fees		$	643			$	671			$	743			$	1,304			$	912

Gross revenue generated by RDSI, including services provided to Rurban/State Bank, was $1.44 million for the first quarter of 2012. Of this total, $0.55 million consisted of one-time contract buyout fees from former clients, including $0.46 million paid by State Bank to RDSI following State Bank’s purchase of data processing software and equipment from RDSI. Net data services fees, excluding Rurban/State Bank intercompany transactions, were $0.64 million in the first quarter of 2012, down $0.27 million from the year-ago quarter.

 

Mortgage Banking

 

		Three Months Ended
($’s in thousands)		Mar. 2012				Dec. 2011				Sep. 2011				Jun. 2011				Mar. 2011
Mortgage originations			68,331				85,114				68,989				38,099				28,005
Mortgage sales			64,212				81,046				56,438				30,017				29,999
Mortgage servicing portfolio			422,802				402,062				370,033				351,888				341,600
Mortgage servicing rights			3,359				2,820				2,709				3,294				3,316
Mortgage servicing revenue:
Loan servicing fees			259				242				226				217				209
OMSR amortization			(349	)			(329	)			(251	)			(94	)			(70	)
Net administrative fees			(90	)			(87	)			(25	)			123				139
OMSR valuation adjustment			419				(221	)			(771	)			(127	)			-
Net loan servicing fees			329				(308	)			(796	)			(4	)			139
Gain on sale of mortgages			1,181				1,529				1,101				565				425
Mortgage banking revenue, net		$	1,510			$	1,221			$	305			$	561			$	564

 

Mortgage loan originations were exceptionally strong for the first quarter of 2012: $68.3 million, up $40.3 million, or 144 percent, from the $28.0 million generated in the first quarter of 2011. Sales into the secondary market were also exceptionally strong: $64.2 million, up $34.2 million, or 114 percent, above the $30.0 million sold in the year ago-quarter. In addition to the higher volume of sales, first quarter 2012 spreads were also stronger, totaling 1.84 percent of loans sold compared to 1.42 percent for the year-earlier quarter.

 

Net mortgage banking income, consisting of gains on the sale of mortgage loans and net loan servicing fees, was $1.51 million for the first quarter of 2012 compared to $1.22 million for the linked quarter and $0.56 million for the year-ago first quarter, higher by $0.29 million and $0.95 million, respectively. The mortgage servicing valuation adjustment in the first quarter of 2012 was a favorable $0.42 million, compared to a charge of $0.22 million for the linked quarter. Valuation of the mortgage servicing portfolio benefited from a lower rate of prepayments this past quarter. The mortgage servicing portfolio at the end of the first quarter 2012 was $422.8 million, up $81.2 million, or 23.8 percent, from first quarter-end 2011.

 

 

 

The remainder of noninterest income, derived from wealth management and customer service fees, plus other income, primarily income from bank-owned life insurance, was $1.48 million for the first quarter of 2012, virtually unchanged from the linked and year-ago quarters. These areas have provided ongoing stability to Rurban’s noninterest income stream. Rurban remains highly diversified for a bank of its asset size. Core noninterest income contributed 41.7 percent of first quarter 2012 core revenue; this compares to a 37.2 percent contribution for first quarter 2011.

 

Loan Loss Provision

 

The loan loss provision was $0.45 million for the first quarter of 2012, a decline of $0.05 million from the first quarter of 2011. The decreased provision expense reflects a 39 percent decline in nonperforming loans over the past twelve months, and lower net charge-offs. The loan loss reserve at first quarter-end 2012 was 1.50 percent of total loans, providing 82 percent coverage of nonperforming loans at quarter-end; this compares to reserve coverage of 49 percent at first quarter-end 2011. Nonperforming loans declined by $5.2 million year over year, while net charge-offs declined by $0.25 million.

 

Noninterest Expense

 

For the first quarter of 2012, noninterest expense was $6.7 million, a decline of $0.4 million, or 5.4 percent, from the $7.1 million reported for the 2011 first quarter. Although compensation expense was only minimally lower despite a decline of 24 FTE staff, cost savings were also achieved in virtually every expense category. For the quarter ended December 31, 2011, Rurban reported RDSI-related impairments totaling $1.0 million. Excluding these and other nonrecurring charges, noninterest expense from operations for the linked quarter was $6.8 million. Reflecting this improvement in first quarter 2012 operating revenue and expense, the efficiency ratio declined to 76.6 percent, from 86.1 percent for the year-ago quarter.

  

Balance Sheet

Total assets as of March 31, 2012 were $645.0 million, a decline of $10.0 million, or 1.5 percent, from first quarter-end 2011. The deleveraging transactions completed during June of 2011 contributed to a significant decline in the securities portfolio. Since the prior year, securities are lower by $20.5 million.

 

Total deposits as of first quarter-end 2012 were $535.5 million, higher by $22.5 million than at first quarter-end 2011. As a result of the balance sheet deleveraging, combined with lower cash reserves, State Bank was able to reduce higher cost repos and FHLB advances by $35.8 million since the prior-year; they now stand at $30.4 million.

 

 

 

Loan Portfolio

 

($ in Thousands)		Mar. 2012				Dec. 2011				Sep. 2011				Jun. 2011				Mar. 2011				Variance YOY
Commercial		$	78,450			$	78,112			$	77,269			$	74,613			$	70,788			$	7,662
% of Total			17.8	%			17.7	%			17.6	%			17.0	%			16.8	%			10.8	%
Commercial RE			188,984				187,829				186,411				190,625				181,750				7,234
% of Total			43.0	%			42.4	%			42.4	%			43.6	%			43.1	%			4.0	%
Agriculture			37,741				38,361				38,601				38,453				37,206				535
% of Total			8.6	%			8.7	%			8.8	%			8.8	%			8.8	%			1.4	%
Residential RE			84,771				87,656				85,399				82,782				82,436				2,335
% of Total			19.3	%			19.8	%			19.5	%			18.9	%			19.5	%			2.8	%
Consumer & Other			49,775				50,596				51,246				51,078				49,986				(211	)
% of Total			11.3	%			11.4	%			11.7	%			11.7	%			11.8	%			-
Total Loans		$	439,721			$	442,554			$	438,926			$	437,551			$	422,166			$	17,555
																							4.2	%

 

Total loans held for investment (HFI) were $439.7 million at March 31, 2012 compared to $422.2 million for the prior-year quarter-end, up $17.6 million, or 4.2 percent. Commercial loans accounted for the majority of growth, namely, commercial real estate (“CRE”), up $7.2 million, or 4.0 percent, and commercial and industrial (“C&I”) loans, up $7.7 million, or 10.8 percent. Year-to-date, loans declined by $2.8 million, primarily from a $2.9 million decline in residential mortgages held in portfolio.

 

Asset Quality

 

Rurban continues to improve on its asset quality, reporting nonperforming assets of $9.9 million for the current quarter, lower by $4.4 million, or 30.6 percent, than the prior year first quarter-end. Delinquency levels are down significantly, with the 30-89 day category totaling $0.57 million at the end of the 2012 first quarter compared to $0.90 million for the prior-year first quarter, and $1.98 million for the linked quarter.

 

 

 

 

Summary of Nonperforming Assets
($ in Thousands)
Nonperforming Loan Category		Mar. 2012				Dec. 2011				Sep. 2011				Jun. 2011				Mar. 2011
Commercial		$	2,021			$	2,393			$	2,466			$	2,507			$	2,950
% of Total Commercial loans			2.58	%			3.06	%			3.19	%			3.36	%			4.17	%
Commercial RE loans			1,481				1,456				2,210				2,620				5,336
% of Total CRE loans			0.78	%			0.78	%			1.19	%			1.37	%			2.94	%
Agriculture			113				-				87				87				87
% of Total Ag loans			0.30	%			-				0.23	%			0.23	%			0.23	%
Residential RE			1,840				2,471				2,107				2,436				3,466
% of Total Res. RE loans			2.17	%			2.82	%			2.47	%			2,94	%			4.20	%
Consumer & Other			1,056				580				461				423				282
% of Consumer & Other loans			2.12	%			1.15	%			0.90	%			0.83	%			0.56	%
Total Nonaccruing Loans			6,511				6,900				7,331				8,073				12,121
% of Total Loans			1.48	%			1.56	%			1.67	%			1.85	%			2.87	%
Accruing Restructured Loans)			1,593				1,334				1,311				1,312				1,229
Total Nonperforming Loans		$	8,104			$	8,234			$	8,642			$	9,385			$	13,350
% of Total Loans			1.84	%			1.86	%			1.97	%			2.14	%			3.16	%
OREO & Repossessed Vehicles			1,807				1,830				1,970				2,056				924
Total Nonperforming Assets		$	9,911			$	10,064			$	10,612			$	11,441			$	14,274
% of Total Assets			1.54	%			1.60	%			1.70	%			1.85	%			2.18	%

 

Nonaccruing loans were $6.5 million as of March 31, 2011, a decline of $5.6 million, or 46 percent from the year-earlier level. The greatest improvement was reflected in the CRE portfolio, where nonaccrual loans declined by $3.9 million, or 72 percent, to $1.5 million over the past twelve months. As of March 31, 2012, only 0.8 percent of CRE loans were on nonaccrual status compared to 2.9 percent at the prior year quarter-end. Currently, Rurban has only three nonperforming relationships that exceed $1.0 million; together, they account for $4.0 million, or 40 percent, of nonperforming assets.

 

NONPERFORMING ASSET RECONCILIATION
($ in Thousands)		Mar. 2012				Dec. 2011				Sep. 2011				Jun. 2011				Mar. 2011
Beginning Balance		$	10,064			$	10,612			$	11,441			$	14,274			$	14,929
Additions			906				1,193				432				289				1,076
Returns to performing status			(419	)			(169	)			(206	)			(352	)			(83	)
Principal payments			(402	)			(375	)			(281	)			(844	)			(118	)
Sale of OREO/OAO			(23	)			(358	)			(246	)			(416	)			(1,014	)
Loan charge-offs			(474	)			(648	)			(527	)			(1,593	)			(639	)
Valuation write-downs			-				(214	)			-				-				-
Restructured Loan Activity			259				23				(1	)			83				123
Net Change			(153	)			(548	)			(829	)			(2,833	)			(655	)
Total		$	9,911			$	10,064			$	10,612			$	11,441			$	14,274

 

 

About Rurban Financial Corp.

 

Based in Defiance, Ohio, Rurban Financial Corp. is a financial services holding company with two wholly-owned operating subsidiaries: The State Bank and Trust Company (State Bank) and RDSI Banking Systems (RDSI). State Bank operates through 18 banking centers in seven Northwestern Ohio counties, one center in Fort Wayne, Indiana; and loan production offices in Columbus, Ohio and Angola, Indiana. The Bank offers a full range of financial services for consumers and small businesses, including wealth management, mortgage banking, commercial and agricultural lending. RDSI provides item processing services to community banks located in the Midwest. Rurban’s common stock is listed on the NASDAQ Global Market under the symbol RBNF.

 

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 except as required by law. All subsequent written and oral forward-looking statements attributable to Rurban or any person acting on its behalf are qualified by these cautionary statements.

 

Non-GAAP Financial Measures

In addition to results presented in accordance with GAAP, this release contains certain non-GAAP financial measures. Management 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@thebank-sbt.com

 

 

 

RURBAN FINANCIAL CORP.  & SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS - (Unaudited)

 

		March				December				September				June				March
($ in Thousands)		2012				2011				2011				2011				2011
ASSETS
Cash and due from banks		$	29,602			$	14,846			$	13,764			$	10,486			$	38,090
Investment Securities:
Securities available for sale, at fair value			110,603				111,978				104,615				104,770				131,053
Other securities - FRB and FHLB Stock			3,685				3,685				3,748				3,748				3,748
Total investment securities			114,288				115,663				108,363				108,518				134,801
Loans held for sale			11,384				5,238				10,590				7,211				5,424
Loans, net of unearned income			439,721				442,554				438,926				437,551				422,166
Allowance for loan losses			(6,609	)			(6,529	)			(6,235	)			(6,444	)			(6,593	)
Net loans			433,112				436,025				432,691				431,107				415,573
Premises and equipment, net			13,282				13,773				14,120				14,359				14,361
Purchased software			386				159				805				875				947
Cash surrender value of life insurance			12,312				12,224				12,134				12,042				11,951
Goodwill			16,353				16,353				16,734				16,734				16,734
Core deposits and other intangibles			1,691				1,849				2,006				2,191				2,388
Foreclosed assets held for sale, net			1,807				1,830				1,970				2,056				924
Mortgage servicing rights			3,359				2,820				2,709				3,294				3,316
Accrued interest receivable			1,802				1,635				2,061				1,959				2,364
Other assets			5,598				6,249				5,846				7,229				8,095
Total assets		$	644,976			$	628,664			$	623,793			$	618,061			$	654,968
LIABILITIES AND EQUITY
Deposits
Non interest bearing demand		$	71,077			$	65,963			$	62,080			$	59,651			$	64,028
Interest bearing demand			118,898				107,446				103,229				101,972				107,940
Savings			52,599				49,665				48,146				48,771				48,983
Money market			82,799				74,244				79,163				72,823				77,482
Time deposits			210,119				221,447				221,731				212,653				214,528
Total deposits			535,492				518,765				514,349				495,870				512,961
Notes payable			2,519				2,788				2,865				3,142				3,218
Advances from Federal Home Loan Bank			12,611				12,776				12,940				24,602				16,680
Fed funds purchased			-				-				-				2,000				-
Repurchase agreements			17,771				18,779				18,778				19,867				49,499
Trust preferred securities			20,620				20,620				20,620				20,620				20,620
Accrued interest payable			3,556				2,954				2,704				2,392				2,196
Other liabilities			3,381				4,050				3,985				3,554				3,529
Total liabilities			595,950				580,732				576,241				572,047				608,703
Equity
Preferred stock			-				-				-				-				N/A
Common stock			12,569				12,569				12,569				12,569				12,569
Additional paid-in capital			15,338				15,323				15,302				15,280				15,258
Retained earnings			21,438				20,466				20,192				19,590				18,813
Accumulated other comprehensive income			1,450				1,343				1,258				344				1,394
Treasury stock			(1,769	)			(1,769	)			(1,769	)			(1,769	)			(1,769	)
Total equity			49,026				47,932				47,552				46,014				46,265
Total liabilities and equity		$	644,976			$	628,664			$	623,793			$	618,061			$	654,968

 

 

 

RURBAN FINANCIAL CORP.

CONSOLIDATED STATEMENTS OF OPERATION - (Unaudited)

Three Months Ended

 

($ in Thousands)		March				December				September				June				March
Interest income		2012				2011				2011				2011				2011
Loans
Taxable		$	5,928			$	6,171			$	6,251			$	6,170			$	5,852
Nontaxable			23				24				24				15				11
Securities
Taxable			399				387				446				566				611
Nontaxable			147				170				172				302				336
Other			-				-				-				-				-
Total interest income			6,497				6,752				6,893				7,053				6,810
Interest expense
Deposits			854				946				976				1,010				1,049
Other borrowings			34				22				25				24				25
Repurchase Agreements			68				70				72				344				426
Federal Home Loan Bank advances			74				77				79				113				133
Trust preferred securities			592				358				356				349				344
Total interest expense			1,622				1,473				1,508				1,840				1,977
Net interest income			4,875				5,279				5,385				5,213				4,833
Provision for loan losses			450				299				297				898				499
Net interest income after provision
for loan losses			4,425				4,980				5,088				4,315				4,334
Noninterest income
Data service fees			643				671				743				1,304				912
Trust fees			642				623				629				669				695
Customer service fees			631				647				664				640				581
Gain on sale of mortgage  and OMSR's			1,181				1,529				1,101				565				425
Mortgage loan servicing fees, net			329				(308	)			(796	)			(4	)			139
Gain on sale of non-mortgage loans			-				127				-				38				43
Net gain (loss) on sales of securities			-				-				-				1,871				-
Loss on sale or disposal of assets			(56	)			(46	)			(27	)			(160	)			(100	)
Other income			211				180				161				174				168
Total non-interest income			3,581				3,423				2,475				5,097				2,863
Noninterest expense
Salaries and employee benefits			3,499				3,488				3,583				3,573				3,530
Net occupancy expense			548				531				568				517				584
Equipment expense			711				709				690				718				711
FDIC insurance expense			214				191				145				254				318
Fixed asset and software impairment			-				609				-				-				-
Data processing fees			113				131				158				192				144
Professional fees			385				493				377				577				474
Marketing expense			90				93				89				90				56
Printing and office supplies			78				52				86				119				76
Telephone and communication			144				139				141				143				157
Postage and delivery expense			229				235				260				259				344
State, local and other taxes			120				77				103				134				144
Employee expense			106				113				143				172				96
Goodwill Impairment			-				381				-				-				-
Other intangible amortization expense			157				157				185				197				197
OREO Impairment			-				214				-				-				-
Other expenses			282				359				295				1,453				229
Total non-interest expense			6,676				7,972				6,823				8,398				7,060
Income before income tax expense			1,330				431				740				1,014				137
Income tax expense			358				157				137				237				126
Net income		$	972			$	274			$	603			$	777			$	11
Common share data:
Basic earnings per common share		$	0.20			$	0.06			$	0.12			$	0.16			$	0.00
Diluted earnings per common share		$	0.20			$	0.06			$	0.12			$	0.16			$	0.00

 

 

 

RURBAN FINANCIAL CORP.
CONSOLIDATED FINANCIAL HIGHLIGHTS - (Unaudited)

 

($ in thousands except per share data)		Three Months Ended
			March				December				September				June				March
SUMMARY OF OPERATIONS			2012				2011				2011				2011				2011
Net interest income		$	4,875				5,279				5,385				5,213				4,833
Tax-equivalent adjustment		$	88				100				101				163				179
Tax-equivalent net interest income (core)		$	4,963				5,379				5,486				5,376				5,012
Provision for loan loss		$	450				299				297				898				499
Noninterest income		$	3,581				3,423				2,475				5,097				2,863
Less: Non core items		$	(34	)			46				27				(2,230	)			100
Core noninterest income		$	3,547				3,469				2,502				2,867				2,963
Total revenue, tax-equivalent		$	8,544				8,802				7,961				10,473				7,875
Core revenue, tax-equivalent		$	8,510				8,848				7,988				8,243				7,975
Noninterest expense		$	6,676				7,972				6,823				8,398				7,060
Less: Non core items		$	-				1,204				-				1,083				-
Core noninterest expense		$	6,676				6,768				6,823				7,315				7,060
Pre provision pretax income (loss)		$	1,780				730				1,037				1,912				636
Core pre provision pretax income		$	1,746				1,980				1,064				765				737
Pretax income (loss)		$	1,330				431				740				1,014				138
Net income (loss)		$	972				274				603				777				11
Core earnings (loss) after tax		$	950				1,099				621				20				77
PER SHARE INFORMATION:
Basic & diluted earnings		$	0.20				0.06				0.12				0.16				0.00
Core earnings		$	0.20				0.23				0.13				0.00				0.02
Book value per common share		$	10.08				9.86				9.78				9.46				9.52
PERFORMANCE RATIOS:
Return on average assets			0.61	%			0.17	%			0.38	%			0.48	%			0.01	%
Core return on average assets			0.60	%			0.69	%			0.40	%			0.01	%			0.05	%
Return on average common equity			8.04	%			2.33	%			5.12	%			6.66	%			0.09	%
Core return on avg. tangible common equity			12.67	%			15.65	%			9.06	%			0.30	%			1.18	%
Earning asset yield			4.77	%			4.93	%			5.07	%			5.14	%			5.04	%
Cost of interest bearing liabilities			1.28	%			1.15	%			1.19	%			1.39	%			1.46	%
Core efficiency ratio			76.61	%			74.72	%			83.10	%			86.35	%			86.05	%
Core noninterest expense/average assets			4.20	%			4.25	%			4.35	%			4.51	%			4.27	%
Core noninterest income/operating revenue			41.52	%			39.41	%			31.43	%			27.37	%			37.63	%
Net interest margin			3.53	%			3.80	%			3.90	%			3.71	%			3.48	%
Tax equivalent effect			0.07	%			0.07	%			0.08	%			0.12	%			0.13	%
Net interest margin - fully tax equivalent basis			3.60	%			3.87	%			3.98	%			3.83	%			3.61	%
ASSET QUALITY RATIOS:
Gross charge-offs		$	474				648				527				1,593				639
Recoveries		$	104				642				21				545				18
Net charge-offs		$	371				6				506				1,048				621
Nonaccruing loans/total loans			1.48	%			1.56	%			1.67	%			1.85	%			2.87	%
Nonperforming loans/total loans			1.84	%			1.86	%			1.97	%			2.14	%			3.16	%
Nonaccruing assets/ loans & OREO			1.88	%			1.96	%			2.11	%			2.30	%			3.08	%
Nonperforming assets/total assets			1.54	%			1.60	%			1.70	%			1.85	%			2.18	%
Allowance for loan loss/nonperforming loans			81.6	%			79.3	%			72.1	%			68.7	%			49.4	%
Allowance for loan loss/total loans			1.50	%			1.48	%			1.42	%			1.47	%			1.56	%
Net loan charge-offs/average loans (ann.)			0.34	%			0.01	%			0.46	%			0.97	%			0.59	%
Loan loss provision/net charge-offs			121.46	%			5243.77	%			58.69	%			85.74	%			80.33	%
CAPITAL & LIQUDITY RATIOS:
Loans/Deposits			82.12	%			85.31	%			85.34	%			88.24	%			82.30	%
Equity/Assets			7.60	%			7.62	%			7.62	%			7.44	%			7.06	%
Tangible equity/Tangible assets			4.88	%			4.85	%			4.64	%			4.38	%			4.13	%
END OF PERIOD BALANCES
Total loans		$	439,721				442,554				438,926				437,551				422,166
Total assets		$	644,976				628,664				623,793				618,061				654,968
Deposits		$	535,492				518,765				514,349				495,870				512,961
Stockholders equity		$	49,026				47,932				47,552				46,014				46,265
Intangibles		$	18,430				18,361				19,545				19,800				20,069
Tangible equity		$	30,596				29,571				28,007				26,214				26,196
Full-time equivalent employees			203				210				215				228				227
AVERAGE BALANCES
Total loans		$	436,384				437,020				437,744				430,363				422,519
Total earning assets		$	552,016				556,004				551,744				561,353				554,975
Total assets		$	635,849				636,932				627,291				648,681				661,621
Deposits		$	523,193				522,472				512,190				510,591				520,045
Stockholders equity		$	48,377				47,035				47,087				46,629				46,229
Tangible equity		$	29,981				28,082				27,414				26,694				26,024

  

 

Rurban Financial Corp.

Segment Reporting - (Unaudited)

3 Month Ended March 31, 2012 

 

		Banking		Parent Company and Other		Total Banking, Parent and Other		Data Services		Elimination Entries		Rurban Financial Corp.
($ in Thousands)
Income Statement Measures
Interest income	$	6,498		-		6,498		-		-		6,498
Interest expense		997		612		1,609		13		-		1,622
Net interest income		5,501		(612)		4,889		(13)		-		4,876
Provision for loan loss		450		-		450		-		-		450
Non-interest income		3,044		69		3,113		1,436		(969)		3,580
Non-interest expense		6,447		294		6,741		884		(949)		6,676
Net income - QTD	$	1,184		(548)		636		356		(20)		972
Performance Measures
Average  assets - QTD	$	628,650		-		632,570		3,279		-		635,849
Return on average assets		0.75%		-		0.40%		43.42%		-		0.61%
Average equity - QTD	$	69,717		-		48,377		(1,860)		-		48,377
Return on average equity		6.79%		-		5.26%		-		-		8.04%
Average loans - QTD	$	437,419		2,000		439,419		-		(3,035)		436,384
Average deposits - QTD	$	524,528		-		524,528		-		(1,335)		523,193

 

 

 

RURBAN FINANCIAL CORP.

Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures

 

		Three Months Ended
($ in Thousands)			March				December				September				June				March
			2012				2011				2011				2011				2011
GAAP Earnings		$	972				274				603				777				11
Realized securities gains (1)			-				-				-				(1,871	)			-
Prepayment penalties (1)			-				-				-				1,083				-
(Gains)/losses on sales of assets (1)			56				46				27				160				100
OREO writedown (1)			-				214				-				-				-
Hardware write-offs (2)			-				609				-				-				-
Contract buyouts (2)			(90	)			-				-				(519	)			-
Writedown of goodwill and other intangibles (2)			-				381				-				-				-
Total non-core Items			(34	)			1,250				27				(1,147	)			100
Applicable income tax effect on non-core Items			12				(425	)			(9	)			390				(34	)
After-tax non core Items			(22	)			825				18				(757	)			66
Core recurring net income			950				1,099				621				20				77

 

(1) State Bank & Trust
(2) RDSI