Exhibit 99.1
Investor Contact: Valda Colbart, 419-784-2759, rfcinv@rurban.net
RURBAN FINANCIAL CORP. REPORTS FISCAL YEAR 2007 EARNINGS INCREASED 18% FROM PREVIOUS YEAR’S RESULTS
DEFIANCE, Ohio, January 23, 2008 — Rurban Financial Corp. (NASDAQ: RBNF), a leading provider of full-service community banking, investment management, trust services and bank data processing, reported 2007 earnings of $3.26 million, or $0.65 per diluted share, an increase of approximately 18% above the $2.76 million, or $0.55 per diluted share reported in 2006.
Fourth quarter 2007 earnings were $906,000, or $0.18 per diluted share, compared with fourth quarter 2006 earnings of $710,000, or $0.14 per diluted share, an increase of approximately 28%; compared with the third quarter of 2007, net income and earnings per share rose 4.9% and 5.9%, respectively.
Highlights of the year and fourth quarter 2007 include:
| | · | During the first quarter of 2007, Rurban merged Reliance Financial Services, N.A., its trust and investment subsidiary, and The Exchange Bank, its recently acquired community bank, into The State Bank and Trust Company. This action has allowed efficiencies leading to continuing core profit improvement at The State Bank and Trust Company. |
| | · | State Bank continues to expand its reach to higher-growth markets. In January 2007, the Fort Wayne, Indiana loan production office was converted to a full-service branch. State Bank continued its entrance to growth markets by opening a loan production office in Columbus, Ohio in December, 2007. |
| | · | Loans increased 5.2%, or $19.2 million, over the course of the year, funded largely by cash and the liquidation of investment securities. As a result of this restructure, assets grew only 1% year-over-year to $561.2 million. |
| | · | RDSI and DCM, Rurban’s data and item processing subsidiaries, reported another record year. The total number of banks being process increased by 5 to 117. Revenue increased to $20.6 million, a $4.3 million, or 27% increase, over the previous year’s results. Net income was a record $2.5 million for the year. |
| | · | On April 12, 2007, Rurban initiated a stock repurchase program, authorizing the repurchase of up to 250,000 shares, or approximately 5%, of the Company’s outstanding shares. As of the end of the fourth quarter, Rurban repurchased 48,500 shares at an average cost of $12.58. |
| | · | Rurban increased its dividend to shareholders from $0.21 per share during 2006 to $0.26 per share in 2007. |
“We are very encouraged with our growth in core earnings for both segments of our business, especially considering how difficult the banking environment has been for the past twelve months,” commented Mr. Joyce. “There are numerous factors that contributed to this growth; however, in the banking side of our business, the most significant determinants were loan growth, maintenance of our interest rate margin following a dip in mid-year, and expense control. We are also continuing our market expansion with the addition of the Columbus, Ohio market. We are very encouraged with the turnaround results from our banking business, and we are cautiously optimistic that this turnaround will continue, but banking is not immune to the economy.”
Joyce continued, “RDSI maintained its growth pattern reaching higher levels of revenue, net income, and number of client banks processed. The addition of DCM in September of 2006 also aided RDSI in attaining another record year. RDSI is now providing data and item processing in ten states to 117 client banks. We believe that 2008 provides RDSI and DCM the opportunity to continue on its established growth pattern.”
YTD RESULTS
Earnings: | | Year Ended December 31 | |
(Dollars in thousands except per share data) | | 2007 | | 2006 | |
| Net interest income | | $ | 14,787 | | $ | 15,034 | |
| Non-interest income | | | 26,861 | | | 23,755 | |
| Total revenue | | | 41,648 | | | 38,789 | |
| Provision for loan losses | | | 521 | | | 178 | |
| Non-interest expense | | | 36,637 | | | 34,904 | |
| Net income | | | 3,257 | | | 2,760 | |
| Diluted EPS | | $ | 0.65 | | $ | 0.55 | |
Net interest income was $14.8 million for 2007 compared to $15.0 million for 2006, a decrease of 1.6%, which primarily resulted from margin compression. Average earning assets also decreased to $488.3 million in 2007 compared to $490.6 million in 2006 as a result of repositioning the balance sheet to improve the net interest margin. Over the past 12 months, the company was successful in converting lower yielding investments into a funding source for loan growth and converted higher cost deposits to core deposits and increased wholesale funding due to favorable rates.
Non-interest income was $26.9 million for 2007 compared to $23.8 million for 2006, representing a $3.1 million, or 13.1% increase year-over-year. Non-interest income in 2006 was increased a net $1.1 million from the one-time impact of a $495,000 charge taken to restructure the bond portfolio, an $889,000 recovery of losses previously recorded on WorldCom bonds, and a gain associated with the sale of the credit card portfolio of $740,000. Excluding these 2006 one-time items, non-interest income increased $4.2 million, or 18.7%, year-over-year. This increase was driven by a $4.4 million, or 29%, increase in data service fees, which were primarily attributable to the DCM acquisition.
Non-interest expense increased $1.7 million, or 4.9%, primarily from the additional expenses incurred within the Data Processing Group relating to the incorporation of full-year expenses from the DCM acquisition, which occurred in September of 2006. Data Processing Group expenses were $16.9 million in 2007 compared to $13.1 million in 2006. This $3.7 million increase in RDSI was partially offset by a $1.9 million improvement within our Banking Group. This non-interest expense reduction was primarily the result of reductions in professional fees associated with loan workouts and the reduction of 42 full-time positions within the company, of which 23 were part of the Banking Group. This significantly reduced compensation and employee benefits expense. This reduction was also aided by approximately $500,000 of one-time expenses taken in the fourth quarter of 2006 as detailed below.
FOURTH QUARTER RESULTS
Earnings: | | Fourth Quarter Ended December 31 | |
(Dollars in thousands except per share data) | | 2007 | | 2006 | |
| Net interest income | | $ | 3,783 | | $ | 3,584 | |
| Non-interest income | | | 6,832 | | | 7,576 | |
| Revenue | | | 10,615 | | | 11,160 | |
| Provision (credit) for loan losses | | | 143 | | | (159 | ) |
| Non-interest expense | | | 9,164 | | | 10,359 | |
| Net income (loss) | | | 906 | | | 710 | |
| Diluted EPS | | $ | 0.18 | | $ | 0.14 | |
Net interest income increased to $3.8 million for the quarter compared to $3.6 million for the fourth quarter of 2006. This 5.5% increase is due to an 18 basis point improvement in the banking segment’s net interest margin. This improvement in net interest margin was attributable to the balance sheet restructuring completed at year-end 2006 combined with aggressive pricing management for both loans and deposits.
Non-interest income totaled $6.8 million for 2007 and $7.6 million for 2006. Excluding the fourth quarter 2006 one-time net gain of $1.1 million discussed above, non-interest income was $6.4 million for 2006, up $390,000, or 6.1%. The data service fees contributed $216,000 of the $390,000 fee increase. In addition, trust fees and deposit fees increased 5.1% and 13%, respectively.
Non-interest expense for the year-over-year fourth quarter decreased $1.2 million, or 11.5%. As previously mentioned, the company eliminated 42 full-time positions across all business segments, which decreased fourth quarter 2007 compensation, benefits and other employee related expenses by $543,000, or 11.6%, compared to fourth quarter 2006. The remaining reductions over 2006 resulted from lower professional fees of $284,000 from litigation costs. The fourth quarter of 2006 also contained one-time expenses of approximately $500,000, which included $215,000 for FHLB prepayment penalties and $283,000 for merger related charges.
CONSOLIDATED BALANCE SHEET
Total assets at December 31, 2007 totaled $561.2 million showing a nominal increase over $556.0 million at December 31, 2006. At December 31, 2007, gross loans totaled $389.3 million, deposits totaled $406.0 million and shareholders equity was $59.3 million. At December 31, 2006 loans, deposits and equity were $370.1 million, $414.6 million, and $57.0 million, respectively.
BANK OPERATING RESULTS
Mr. Joyce commented, “We repositioned our balance sheet and reduced expenses dramatically within our Banking Group during 2007. The result was an improvement of 26 basis points to 61 basis points Return on Assets for the fourth quarter of 2007, compared to the fourth quarter of 2006. This improvement in “run rate” of ROA was accomplished despite the substantial one-time favorable income items in the fourth quarter of 2006, as stated in our analysis above. We made several changes in structure and function in 2007 thereby improving our core earnings, including additional efficiencies on the bank side that were executed in the fourth quarter of 2007. We will be working to continue growing our loan balances in 2008 while maintaining a tight control on expenses. We recognize that further improvement is necessary. We believe we have the right banking model in place, and we are beginning to execute that model very effectively.”
Net income for the Banking Group was $2.9 million for 2007 compared with $1.9 million reported for the prior fiscal year. On a linked quarter basis, net income increased by $162,000, or 24%.
Total loans were $390.5 million at December 31, 2007, up $18.3 million, or 4.9%. Commercial real estate was the only category that had significant growth during 2007, up $31.8 million, or 34.7%, to $123.5 million. This growth was partially offset by a decline of $4.9 million in C&I and $8.1 million in residential mortgages. Commercial loans now account for 64.5% of total loans compared with 60.0% at the prior year-end. As part of a continuing initiative to improve profitability, $9.8 million of lower-yielding securities were liquidated during the year to fund loan growth.
Total deposits at December 31, 2007 were $406.0 million, down $8.5 million, or 2.1%, from the December 31, 2006 year-end. The decrease during the year resulted from Time Deposits decreasing $14.2 million and Demand Deposits decreasing $5.0 million. These decreases were offset by a $10.7 million increase in NOW accounts, savings accounts, and money market accounts. The High Performance Checking account promotion the company started in April of 2007 generated $4.5 million in new retail checking account balances at a funding cost of 1.20%. The decrease in Demand Deposits was due to customers shifting balances into higher-yielding products. The decrease in Time Deposits was due to planned runoff of higher-costing municipal deposits, which was part of the balance sheet restructure.
ASSET QUALITY
Provision for Loan Losses of $521,000 was taken in 2007 compared to $178,000 taken for 2006. The 2006 provision was reduced by the release of $140,000 provision associated with the credit card portfolio sold at the end of 2006. The fourth quarter loan loss provision of $142,000 represents a normal accrual for the company given our loan growth and net charge-offs of $89,000, or .09%, of average loans.
| | | | | | |
| | | Quarter Ended | | YTD | |
Asset Quality (Dollars in Thousands) | | December, 2007 | | September, 2007 | | December, 2006 | | 2007 | | 2006 | |
| Net charge-offs | | $ | 89 | | $ | 28 | | $ | 645 | | $ | 248 | | $ | 1,200 | |
| Net charge-offs (Ann.) / Avg. loans | | | 0.09 | % | | 0.03 | % | | .70 | % | | .07 | % | | .33 | % |
| Allowance for loan loss | | $ | 3,990 | | $ | 3,937 | | $ | 3,717 | | | | | | | |
| Allowance for loan loss / Loans | | | 1.03 | % | | 1.01 | % | | 1.00 | % | | | | | | |
| Non-performing assets | | $ | 6,162 | | $ | 6,432 | | $ | 3,910 | | | | | | | |
| NPA / Total assets | | | 1.10 | % | | 1.14 | % | | .70 | % | | | | | | |
Non-performing assets (loans + OREO + OAO) were $6.2 million, or 1.10 %, of total assets at December 31, 2007, a decrease of $270,000 from the linked quarter, and an increase of $2.3 million from a year-ago. This increase, which originated in the second quarter of 2007, is due to three commercial loan relationships that are being worked out with minimal, if any, expected loss.
RDSI AND DCM RESULTS
Revenue for the Data and Item Processing Group was $20.6 million, up $4.3 million, or 27.0%, over the $16.6 million reported for year-end 2006. DCM, acquired in September, 2006, accounted for $2.9 million of the $4.3 million in fee growth. RDSI continues growing its client banks, servicing 117 community banks at year-end 2007 compared to 112 at year-end 2006. RDSI has contracts signed for six additional new banks that will be converted by June, 2008.
Net Income for the 2007 fiscal year was $2.5 million compared to $1.9 million for 2006, up $586,000, or 31%. “We are very pleased with the growth we obtained in 2007 and we continue to see a solid pipeline of signed and potential customers for both our data processing and item processing services in 2008,” said Mr. Joyce.
Mr. Joyce concluded, “We have seen in this past year a clear transition to improving core earnings in both the banking and data and item processing business segments. The improved run rates in both of these segments indicate continuing growth in 2008. We will be working hard to achieve the maximum growth and profitability for Rurban Financial Corp. and its shareholders.”
ABOUT RURBAN FINANCIAL CORP.
Rurban Financial Corp. is a publicly-held financial services holding company based in Defiance, Ohio with assets of $561.2 million as of December 31, 2007. Rurban's wholly-owned subsidiaries are The State Bank and Trust Company, including Reliance Financial Services; Rurbanc Data Services, Inc. (RDSI); and DCM. The State Bank and Trust Company offers financial services through its 18 branches in Allen, Defiance, Franklin, Fulton, Lucas, Paulding and Wood Counties, Ohio and Allen County, Indiana. Reliance Financial Services, a division of the Bank, offers a diversified array of trust and financial services to customers throughout the Midwest. RDSI and DCM provide data and item processing services to community banks in Arkansas, Florida, Illinois, Indiana, Michigan, Missouri, Nebraska, Nevada, Ohio and Wisconsin. Rurban's common stock is quoted on the NASDAQ Global Market under the symbol RBNF. The Company currently has 10,000,000 shares of stock authorized and 4,978,933 shares outstanding. The Company's website is http://www.rurbanfinancial.net.
FORWARD-LOOKING STATEMENTS
Certain statements within this document, which are not statements of historical fact, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties and actual results may differ materially from those predicted by the forward-looking statements. These risks and uncertainties include, but are not limited to, risks and uncertainties inherent in the national and regional banking, insurance and mortgage industries, competitive factors specific to markets in which Rurban and its subsidiaries operate, future interest rate levels, legislative and regulatory actions, capital market conditions, general economic conditions, geopolitical events, the loss of key personnel and other factors.
Forward-looking statements speak only as of the date on which they are made, and Rurban undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made. All subsequent written and oral forward-looking statements attributable to Rurban or any person acting on our behalf are qualified by these cautionary statements.
RURBAN FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31, 2007 and December 31, 2006
| | | December | | December | |
| | | 2007 | | 2006 | |
| | | (Unaudited) | | | |
ASSETS | | | | | | | |
| Cash and due from banks | | $ | 15,183,627 | | $ | 13,381,791 | |
| Federal funds sold | | | 2,000,000 | | | 9,100,000 | |
| Cash and cash equivalents | | | 17,183,627 | | | 22,481,791 | |
| Interest-earning deposits in other financial institutions | | | - | | | 150,000 | |
| Available-for-sale securities | | | 92,661,386 | | | 102,462,075 | |
| Loans held for sale | | | 1,649,758 | | | 390,100 | |
| Loans, net of unearned income | | | 389,268,744 | | | 370,101,809 | |
| Allowance for loan losses | | | (3,990,455 | ) | | (3,717,377 | ) |
| Premises and equipment, net | | | 15,143,201 | | | 15,449,774 | |
| Purchased software | | | 4,268,116 | | | 4,618,691 | |
| Federal Reserve and Federal Home Loan Bank Stock | | | 4,021,200 | | | 3,993,450 | |
| Foreclosed assets held for sale, net | | | 124,131 | | | 82,397 | |
| Accrued interest receivable | | | 3,008,968 | | | 3,129,774 | |
| Goodwill | | | 13,940,618 | | | 13,674,058 | |
| Core deposits and other intangibles | | | 5,135,228 | | | 5,858,982 | |
| Cash value of life insurance | | | 12,160,581 | | | 10,771,843 | |
| Other assets | | | 6,638,895 | | | 6,559,886 | |
| | | | | | | | |
| Total assets | | $ | 561,213,998 | | $ | 556,007,253 | |
| | | | | | | | |
| | | | | | | | |
LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | | |
| Liabilities | | | | | | | |
| Deposits | | | | | | | |
| Demand | | $ | 41,541,297 | | $ | 46,565,554 | |
| Savings, interest checking and money market | | | 141,009,043 | | | 130,267,333 | |
| Time | | | 223,480,842 | | | 237,722,558 | |
| Total deposits | | | 406,031,182 | | | 414,555,445 | |
| Notes payable | | | 922,457 | | | 2,589,207 | |
| Advances from Federal Home Loan Bank | | | 24,000,000 | | | 21,000,000 | |
| Repurchase Agreements | | | 43,006,438 | | | 32,270,900 | |
| Trust preferred securities | | | 20,620,000 | | | 20,620,000 | |
| Accrued interest payable | | | 2,532,914 | | | 2,224,413 | |
| Other liabilities | | | 4,775,773 | | | 5,792,135 | |
| | | | | | | | |
| Total liabilities | | | 501,888,764 | | | 499,052,100 | |
| | | | | | | | |
| Shareholders' Equity | | | | | | | |
| Common stock | | | 12,568,583 | | | 12,568,583 | |
| Additional paid-in capital | | | 14,923,571 | | | 14,859,165 | |
| Retained earnings | | | 32,361,106 | | | 30,407,298 | |
| Accumulated other comprehensive income (loss) | | | 82,235 | | | (879,893 | ) |
| Treasury stock | | | (610,260 | ) | | - | |
| | | | | | | | |
| Total shareholders' equity | | | 59,325,234 | | | 56,955,153 | |
| | | | | | | | |
| Total liabilities and shareholders' equity | | $ | 561,213,998 | | $ | 556,007,253 | |
RURBAN FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
For The Twelve Months Ended December 31, 2007 and 2006
| | | Twelve Months | | Twelve Months | | Increase/(Decrease) | |
| | 2007 | | 2006 | | $ | |
| Interest income | | | | | | | | | | |
| Loans | | | | | | | | | | |
| Taxable | | $ | 27,782,068 | | $ | 24,958,988 | | $ | 2,823,080 | |
| Tax-exempt | | | 73,451 | | | 63,356 | | | 10,095 | |
| Securities | | | | | | | | | | |
| Taxable | | | 4,283,508 | | | 5,211,672 | | | (928,164 | ) |
| Tax-exempt | | | 645,451 | | | 559,518 | | | 85,933 | |
| Other | | | 225,151 | | | 176,884 | | | 48,267 | |
| Total interest income | | | 33,009,629 | | | 30,970,418 | | | 2,039,211 | |
| | | | | | | | | | | |
| Interest expense | | | | | | | | | | |
| Deposits | | | 13,595,896 | | | 11,022,161 | | | 2,573,735 | |
| Other borrowings | | | 165,859 | | | 172,130 | | | (6,271 | ) |
| Repurchase Agreements | | | 1,615,016 | | | 848,277 | | | 766,739 | |
| Federal Home Loan Bank advances | | | 1,037,026 | | | 2,106,385 | | | (1,069,359 | ) |
| Trust preferred securities | | | 1,808,520 | | | 1,787,023 | | | 21,497 | |
| Total interest expense | | | 18,222,317 | | | 15,935,976 | | | 2,286,341 | |
| | | | | | | | | | | |
Net interest income | | | 14,787,312 | | | 15,034,442 | | | (247,130 | ) |
| | | | | | | | | | | |
| Provision for loan losses | | | 521,306 | | | 177,838 | | | 343,468 | |
| | | | | | | | | | | |
Net interest income after provision | | | | | | | | | | |
for loan losses | | | 14,266,006 | | | 14,856,604 | | | (590,598 | ) |
| | | | | | | | | | | |
| Non-interest income | | | | | | | | | | |
| Data service fees | | | 19,382,115 | | | 15,011,143 | | | 4,370,972 | |
| Trust fees | | | 3,385,320 | | | 3,192,025 | | | 193,295 | |
| Customer service fees | | | 2,243,745 | | | 2,161,153 | | | 82,592 | |
| Net gain on sales of loans | | | 574,000 | | | 1,310,536 | | | (736,536 | ) |
| Net realized gain (loss) on sales of | | | | | | | | | | |
| available-for-sale securities | | | 1,998 | | | (494,885 | ) | | 496,883 | |
| Investment securities recoveries | | | - | | | 889,454 | | | (889,454 | ) |
| Loan servicing fees | | | 227,017 | | | 358,321 | | | (131,304 | ) |
| Gain on sale of assets | | | 29,477 | | | 94,198 | | | (64,721 | ) |
| Other income | | | 1,017,727 | | | 1,233,376 | | | (215,649 | ) |
| Total non-interest income | | | 26,861,399 | | | 23,755,321 | | | 3,106,078 | |
| | | | | | | | | | | |
| Non-interest expense | | | | | | | | | | |
| Salaries and employee benefits | | | 17,007,314 | | | 16,584,146 | | | 423,168 | |
| Net occupancy expense | | | 2,134,950 | | | 1,840,864 | | | 294,086 | |
| Equipment expense | | | 6,586,623 | | | 5,850,281 | | | 736,342 | |
| Data processing fees | | | 469,808 | | | 562,265 | | | (92,457 | ) |
| Professional fees | | | 2,226,577 | | | 2,395,863 | | | (169,286 | ) |
| Marketing expense | | | 820,528 | | | 669,764 | | | 150,764 | |
| Printing and office supplies | | | 661,760 | | | 619,100 | | | 42,660 | |
| Telephone and communication | | | 1,781,277 | | | 1,705,261 | | | 76,016 | |
| Postage and delivery expense | | | 1,545,340 | | | 735,210 | | | 810,130 | |
| State, local and other taxes | | | 584,031 | | | 674,280 | | | (90,249 | ) |
| Employee expense | | | 1,083,056 | | | 978,832 | | | 104,224 | |
| FHLB prepayment penalties | | | - | | | 214,886 | | | (214,886 | ) |
| Other expenses | | | 1,735,346 | | | 2,072,815 | | | (337,469 | ) |
| Total non-interest expense | | | 36,636,610 | | | 34,903,567 | | | 1,733,043 | |
| | | | | | | | | | | |
Income before income tax expense | | | 4,490,795 | | | 3,708,358 | | | 782,437 | |
| Income tax expense | | | 1,234,160 | | | 948,116 | | | 286,044 | |
| | | | | | | | | | | |
Net income | | $ | 3,256,635 | | $ | 2,760,242 | | $ | 496,393 | |
| | | | | | | | | | | |
| Earnings per common share: | | | | | | | | | | |
| Basic | | $ | 0.65 | | $ | 0.55 | | $ | 0.10 | |
| Diluted | | $ | 0.65 | | $ | 0.55 | | $ | 0.10 | |
RURBAN FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
For The Three Months Ended December 31, 2007 and 2006
| | | Fourth Quarter | | Fourth Quarter | | Increase/(Decrease) | |
| | 2007 | | 2006 | | $ | |
| Interest income | | | | | | | | | | |
| Loans | | | | | | | | | | |
| Taxable | | $ | 7,056,261 | | $ | 6,720,398 | | $ | 335,863 | |
| Tax-exempt | | | 22,240 | | | 17,638 | | | 4,602 | |
| Securities | | | | | | | | | | |
| Taxable | | | 1,106,834 | | | 1,258,234 | | | (151,400 | ) |
| Tax-exempt | | | 161,830 | | | 149,172 | | | 12,658 | |
| Other | | | 61,257 | | | 77,726 | | | (16,469 | ) |
| Total interest income | | | 8,408,422 | | | 8,223,168 | | | 185,254 | |
| | | | | | | | | | | |
| Interest expense | | | | | | | | | | |
| Deposits | | | 3,383,225 | | | 3,326,774 | | | 56,451 | |
| Other borrowings | | | 25,215 | | | 51,910 | | | (26,695 | ) |
| Retail Repurchase Agreements | | | 484,118 | | | 382,717 | | | 101,401 | |
| Federal Home Loan Bank advances | | | 276,492 | | | 421,970 | | | (145,478 | ) |
| Trust preferred securities | | | 456,427 | | | 455,408 | | | 1,019 | |
| Total interest expense | | | 4,625,477 | | | 4,638,779 | | | (13,302 | ) |
| | | | | | | | | | | |
Net interest income | | | 3,782,945 | | | 3,584,389 | | | 198,556 | |
| | | | | | | | | | | |
| Provision for loan losses | | | 142,663 | | | (159,483 | ) | | 302,146 | |
| | | | | | | | | | | |
Net interest income after provision | | | | | | | | | | |
for loan losses | | | 3,640,282 | | | 3,743,872 | | | (103,590 | ) |
| | | | | | | | | | | |
| Non-interest income | | | | | | | | | | |
| Data service fees | | | 4,914,328 | | | 4,698,386 | | | 215,942 | |
| Trust fees | | | 873,069 | | | 830,898 | | | 42,171 | |
| Customer service fees | | | 593,665 | | | 525,881 | | | 67,784 | |
| Net gain on sales of loans | | | 137,611 | | | 856,344 | | | (718,733 | ) |
| Net realized gain (loss) on sales of | | | | | | | | | | |
| available-for-sale securities | | | 1,631 | | | (494,885 | ) | | 496,516 | |
| Investment securities recoveries | | | - | | | 889,454 | | | (889,454 | ) |
| Loan servicing fees | | | 80,590 | | | 95,447 | | | (14,857 | ) |
| Gain (loss) on sale of assets | | | (32,362 | ) | | 8,852 | | | (41,214 | ) |
| Other income | | | 263,583 | | | 165,637 | | | 97,946 | |
| Total non-interest income | | | 6,832,115 | | | 7,576,014 | | | (743,899 | ) |
| | | | | | | | | | | |
| Non-interest expense | | | | | | | | | | |
| Salaries and employee benefits | | | 4,134,242 | | | 4,677,237 | | | (542,995 | ) |
| Net occupancy expense | | | 587,150 | | | 506,142 | | | 81,008 | |
| Equipment expense | | | 1,678,311 | | | 1,681,747 | | | (3,436 | ) |
| Data processing fees | | | 97,092 | | | 159,604 | | | (62,512 | ) |
| Professional fees | | | 586,327 | | | 870,464 | | | (284,137 | ) |
| Marketing expense | | | 218,549 | | | 132,787 | | | 85,762 | |
| Printing and office supplies | | | 151,943 | | | 165,990 | | | (14,047 | ) |
| Telephone and communication | | | 451,918 | | | 427,554 | | | 24,364 | |
| Postage and delivery expense | | | 376,777 | | | 337,993 | | | 38,784 | |
| State, local and other taxes | | | 115,441 | | | 161,523 | | | (46,082 | ) |
| Employee expense | | | 281,682 | | | 233,491 | | | 48,191 | |
| FHLB prepayment penalties | | | - | | | 214,886 | | | (214,886 | ) |
| Other expenses | | | 485,154 | | | 789,587 | | | (304,433 | ) |
| Total non-interest expense | | | 9,164,586 | | | 10,359,005 | | | (1,194,419 | ) |
| | | | | | | | | | | |
Income before income tax expense | | | 1,307,811 | | | 960,881 | | | 346,930 | |
| Income tax expense | | | 402,275 | | | 250,448 | | | 151,827 | |
| | | | | | | | | | | |
Net income | | $ | 905,536 | | $ | 710,433 | | $ | 195,103 | |
| | | | | | | | | | | |
| Earnings per common share: | | | | | | | | | | |
| Basic | | $ | 0.18 | | $ | 0.14 | | $ | 0.04 | |
| Diluted | | $ | 0.18 | | $ | 0.14 | | $ | 0.04 | |
RURBAN FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
For The Three Months Ended December 31, 2007 and September 30, 2007
| | | Fourth Quarter | | Third Quarter | | Increase/(Decrease) | |
| | | 2007 | | 2007 | | $ | |
| Interest income | | | | | | | | | | |
| Loans | | | | | | | | | | |
| Taxable | | $ | 7,056,261 | | $ | 7,072,488 | | $ | (16,227 | ) |
| Tax-exempt | | | 22,240 | | | 16,668 | | | 5,572 | |
| Securities | | | | | | | | | | |
| Taxable | | | 1,106,834 | | | 1,041,177 | | | 65,657 | |
| Tax-exempt | | | 161,830 | | | 169,719 | | | (7,889 | ) |
| Other | | | 61,257 | | | 50,288 | | | 10,969 | |
| Total interest income | | | 8,408,422 | | | 8,350,340 | | | 58,082 | |
| | | | | | | | | | | |
| Interest expense | | | | | | | | | | |
| Deposits | | | 3,383,225 | | | 3,497,275 | | | (114,050 | ) |
| Other borrowings | | | 25,215 | | | 32,026 | | | (6,811 | ) |
| Retail Repurchase Agreements | | | 484,118 | | | 435,216 | | | 48,902 | |
| Federal Home Loan Bank advances | | | 276,492 | | | 268,289 | | | 8,203 | |
| Trust preferred securities | | | 456,427 | | | 456,582 | | | (155 | ) |
| Total interest expense | | | 4,625,477 | | | 4,689,389 | | | (63,912 | ) |
| | | | | | | | | | | |
Net interest income | | | 3,782,945 | | | 3,660,951 | | | 121,994 | |
| | | | | | | | | | | |
| Provision for loan losses | | | 142,663 | | | 140,409 | | | 2,254 | |
| | | | | | | | | | | |
Net interest income after provision | | | | | | | | | | |
for loan losses | | | 3,640,282 | | | 3,520,543 | | | 119,739 | |
| | | | | | | | | | | |
| Non-interest income | | | | | | | | | | |
| Data service fees | | | 4,914,328 | | | 5,004,394 | | | (90,066 | ) |
| Trust fees | | | 873,069 | | | 819,989 | | | 53,080 | |
| Customer service fees | | | 593,665 | | | 588,447 | | | 5,218 | |
| Net gain on sales of loans | | | 137,611 | | | 128,947 | | | 8,664 | |
| Net realized gains on sales of | | | | | | | | | | |
| available-for-sale securities | | | 1,631 | | | - | | | 1,631 | |
| Loan servicing fees | | | 80,590 | | | 27,284 | | | 53,306 | |
| Gain (loss) on sale of assets | | | (32,362 | ) | | 11,862 | | | (44,224 | ) |
| Other income | | | 263,583 | | | 201,920 | | | 61,663 | |
| Total non-interest income | | | 6,832,115 | | | 6,782,842 | | | 49,273 | |
| | | | | | | | | | | |
| Non-interest expense | | | | | | | | | | |
| Salaries and employee benefits | | | 4,134,242 | | | 4,290,961 | | | (156,719 | ) |
| Net occupancy expense | | | 587,150 | | | 514,742 | | | 72,408 | |
| Equipment expense | | | 1,678,311 | | | 1,625,762 | | | 52,549 | |
| Data processing fees | | | 97,092 | | | 102,292 | | | (5,200 | ) |
| Professional fees | | | 586,327 | | | 461,844 | | | 124,483 | |
| Marketing expense | | | 218,549 | | | 259,196 | | | (40,647 | ) |
| Printing and office supplies | | | 151,943 | | | 130,363 | | | 21,580 | |
| Telephone and communication | | | 451,918 | | | 446,465 | | | 5,453 | |
| Postage and delivery expense | | | 376,777 | | | 392,211 | | | (15,434 | ) |
| State, local and other taxes | | | 115,441 | | | 103,674 | | | 11,767 | |
| Employee expense | | | 281,682 | | | 266,227 | | | 15,455 | |
| Other expenses | | | 485154 | | | 512,663 | | | (27,509 | ) |
| Total non-interest expense | | | 9,164,586 | | | 9,106,400 | | | 58,186 | |
| | | | | | | | | | | |
Income before income tax expense | | | 1,307,811 | | | 1,196,985 | | | 110,826 | |
| Income tax expense | | | 402,275 | | | 333,384 | | | 68,891 | |
| | | | | | | | | | | |
Net income | | $ | 905,536 | | $ | 863,601 | | $ | 41,935 | |
| | | | | | | | | | | |
| Earnings per common share: | | | | | | | | | | |
| Basic | | $ | 0.18 | | $ | 0.17 | | $ | 0.01 | |
| Diluted | | $ | 0.18 | | $ | 0.17 | | $ | 0.01 | |
RURBAN FINANCIAL CORP. | | | | | | | | | |
| CONSOLIDATED FINANCIAL HIGHLIGHTS | | | | | | | | | |
(Unaudited) | | | | | | | | | |
| | | 4th Qtr | | YTD | | 4th Qtr | | YTD | |
(dollars in thousands except per share data) | | 2007 | | 2007 | | 2006 | | 2006 | |
| | | | | | | | | | |
EARNINGS | | | | | | | | | | | | | |
| Net interest income | | $ | 3,783 | | $ | 14,787 | | $ | 3,584 | | $ | 15,034 | |
| Provision for loan loss | | $ | 143 | | $ | 521 | | $ | (159 | ) | $ | 178 | |
| Non-interest income | | $ | 6,832 | | $ | 26,861 | | $ | 7,576 | | $ | 23,755 | |
| Revenue (net interest income plus non-interest income) | | $ | 10,615 | | $ | 41,648 | | $ | 11,160 | | $ | 38,789 | |
| Non-interest expense | | $ | 9,164 | | $ | 36,636 | | $ | 10,359 | | $ | 34,904 | |
Net income | | $ | 906 | | $ | 3,257 | | $ | 710 | | $ | 2,760 | |
| | | | | | | | | | | | | | |
PER SHARE DATA | | | | | | | | | | | | | |
| Basic earnings per share | | $ | 0.18 | | $ | 0.65 | | $ | 0.14 | | $ | 0.55 | |
| Diluted earnings per share | | $ | 0.18 | | $ | 0.65 | | $ | 0.14 | | $ | 0.55 | |
| Book value per share | | $ | 11.92 | | $ | 11.92 | | $ | 11.33 | | $ | 11.33 | |
| Tangible book value per share | | $ | 8.00 | | $ | 8.00 | | $ | 7.58 | | $ | 7.58 | |
| Cash dividend per share | | $ | 0.07 | | $ | 0.26 | | $ | 0.06 | | $ | 0.21 | |
| | | | | | | | | | | | | | |
PERFORMANCE RATIOS | | | | | | | | | | | | | |
| Return on average assets | | | 0.64 | % | | 0.59 | % | | 0.50 | % | | 0.50 | % |
| Return on average equity | | | 6.15 | % | | 5.62 | % | | 5.08 | % | | 5.06 | % |
| Net interest margin (tax equivalent) | | | 3.12 | % | | 3.10 | % | | 2.92 | % | | 3.13 | % |
| Net interest margin (Bank Only) | | | 3.43 | % | | 3.46 | % | | 3.25 | % | | 3.62 | % |
| Non-interest expense / Average assets | | | 6.48 | % | | 6.58 | % | | 7.27 | % | | 6.30 | % |
| Efficiency Ratio - bank (non-GAAP) | | | 76.93 | % | | 80.07 | % | | 94.85 | % | | 88.20 | % |
| | | | | | | | | | | | | | |
MARKET DATA PER SHARE | | | | | | | | | | | | | |
| Market value per share -- Period end | | $ | 12.49 | | $ | 12.49 | | $ | 10.77 | | $ | 10.77 | |
| Market as a % of book | | | 105 | % | | 105 | % | | 95 | % | | 95 | % |
| Cash dividend yield | | | 2.24 | % | | 2.08 | % | | 2.23 | % | | 1.95 | % |
| Period-end common shares outstanding (000) | | | 4,979 | | | 4,979 | | | 5,027 | | | 5,027 | |
| Common stock market capitalization ($000) | | $ | 62,188 | | $ | 62,188 | | $ | 54,145 | | $ | 54,145 | |
| | | | | | | | | | | | | | |
CAPITAL & LIQUIDITY | | | | | | | | | | | | | |
| Equity to assets | | | 10.6 | % | | 10.6 | % | | 10.2 | % | | 10.2 | % |
| Period-end tangible equity to assets | | | 7.1 | % | | 7.1 | % | | 6.9 | % | | 6.9 | % |
| Tier 1 risk-based capital ratio | | | 14.8 | % | | 14.8 | % | | 14.7 | % | | 14.7 | % |
| Total risk-based capital ratio | | | 16.0 | % | | 16.0 | % | | 15.8 | % | | 15.8 | % |
| | | | | | | | | | | | | | |
ASSET QUALITY | | | | | | | | | | | | | |
Net charge-offs / (Recoveries) | | $ | 89 | | $ | 248 | | $ | 645 | | $ | 1,160 | |
| Net loan charge-offs (Ann.) / Average loans | | | 0.09 | % | | 0.07 | % | | 0.70 | % | | 0.33 | % |
| Non-performing loans | | $ | 5,990 | | $ | 5,990 | | $ | 3,828 | | $ | 3,828 | |
| OREO / OAOs | | $ | 172 | | $ | 172 | | $ | 82 | | $ | 82 | |
| Non-performing assets | | $ | 6,162 | | $ | 6,162 | | $ | 3,910 | | $ | 3,910 | |
| Non-performing assets / Total assets | | | 1.10 | % | | 1.10 | % | | 0.70 | % | | 0.70 | % |
| Allowance for loan losses / Total loans | | | 1.03 | % | | 1.03 | % | | 1.00 | % | | 1.00 | % |
| Allowance for loan losses / Non-performing Assets | | | 64.8 | % | | 64.8 | % | | 95.1 | % | | 95.1 | % |
| | | | | | | | | | | | | | |
END OF PERIOD BALANCES | | | | | | | | | | | | | |
| Total loans, net of unearned income | | $ | 389,269 | | $ | 389,269 | | $ | 370,102 | | $ | 370,102 | |
| Allowance for loan loss | | $ | 3,990 | | $ | 3,990 | | $ | 3,717 | | $ | 3,717 | |
| Total assets | | $ | 561,214 | | $ | 561,214 | | $ | 556,007 | | $ | 556,007 | |
| Deposits | | $ | 406,031 | | $ | 406,031 | | $ | 414,555 | | $ | 414,555 | |
| Stockholders' equity | | $ | 59,325 | | $ | 59,325 | | $ | 56,955 | | $ | 56,955 | |
| Full-time equivalent employees | | | 275 | | | 275 | | | 317 | | | 317 | |
| | | | | | | | | | | | | | |
AVERAGE BALANCES | | | | | | | | | | | | | |
| Loans | | $ | 389,529 | | $ | 381,453 | | $ | 370,687 | | $ | 354,400 | |
| Total earning assets | | $ | 496,782 | | $ | 488,289 | | $ | 502,530 | | $ | 490,550 | |
| Total assets | | $ | 565,779 | | $ | 556,572 | | $ | 569,807 | | $ | 554,095 | |
| Deposits | | $ | 413,473 | | $ | 412,767 | | $ | 415,576 | | $ | 413,338 | |
| Stockholders' equity | | $ | 58,928 | | $ | 57,945 | | $ | 55,963 | | $ | 54,501 | |
Segment Reporting
Fourth Quarter Ended December 31, 2007
| | | | | | | | | | | | | | | | |
| | | State Bank and Trust | | RFCBC (Loan Workout Company) | | Total Banking | | Data Processing | | Parent Company and Other | | Elimination Entries | | Rurban Financial Corp. | |
Income Statement Measures | |
| Interest Income | | $ | 8,437 | | $ | - | | $ | 8,437 | | $ | - | | $ | 1 | | $ | (30 | ) | $ | 8,408 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Interest Expense | | | 4,150 | | | - | | | 4,150 | | | 48 | | | 457 | | | (30 | ) | $ | 4,625 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Net Interest Income | | | 4,287 | | | - | | | 4,287 | | | (48 | ) | | (456 | ) | | - | | $ | 3,783 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Provision For Loan Loss | | | 151 | | | (8 | ) | | 143 | | | - | | | - | | | - | | $ | 143 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Non-interest Income | | | 1,945 | | | - | | | 1,945 | | | 5,232 | | | 342 | | | (687 | ) | $ | 6,832 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Non-interest Expense | | | 4,750 | | | 158 | | | 4,908 | | | 4,202 | | | 741 | | | (687 | ) | $ | 9,164 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Net Income Before Taxes | | | 1,331 | | | (150 | ) | | 1,181 | | | 982 | | | (855 | ) | | - | | $ | 1,308 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Income Taxes | | | 397 | | | (52 | ) | | 345 | | | 334 | | | (277 | ) | | - | | $ | 402 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Net Income QTD | | $ | 934 | | $ | (98 | ) | $ | 836 | | $ | 648 | | $ | (578 | ) | $ | - | | $ | 906 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Performance Measures | | | | | | | | | | | | | | | | | | | | | | |
| Average Assets -QTD | | $ | 545,299 | | $ | 1,311 | | $ | 546,609 | | $ | 20,014 | | $ | 80,827 | | $ | (81,671 | ) | $ | 565,779 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| ROAA | | | 0.69 | % | | - | | | 0.61 | % | | 12.95 | % | | - | | | - | | | 0.64 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| Average Equity - QTD | | $ | 56,882 | | $ | 1,234 | | $ | 58,115 | | $ | 15,222 | | $ | 58,928 | | $ | (73,337 | ) | $ | 58,928 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| ROAE | | | 6.57 | % | | - | | | 5.75 | % | | 17.03 | % | | - | | | - | | | 6.15 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| Efficiency Ratio - % | | | 74.39 | % | | - | | | 76.93 | % | | 79.77 | % | | - | | | - | | | 84.63 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| Average Loans - QTD | | $ | 390,599 | | $ | 555 | | $ | 391,154 | | $ | - | | $ | - | | $ | (1,624 | ) | $ | 389,529 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Average Deposits - QTD | | $ | 420,192 | | $ | - | | $ | 420,192 | | $ | - | | $ | - | | $ | (6,718 | ) | $ | 413,473 | |
Rurban Financial Corp.
Segment Reporting
Twelve Months Ended December 31, 2007
| | | | | | | | | | | | | | | | |
| | | State Bank and Trust | | RFCBC (Loan Workout Company) | | Total Banking | | Data Processing | | Parent Company and Other | | Elimination Entries | | Rurban Financial Corp. | |
Income Statement Measures | |
| Interest Income | | $ | 33,158 | | $ | 1 | | $ | 33,159 | | $ | 1 | | $ | 5 | | $ | (155 | ) | $ | 33,010 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Interest Expense | | | 16,299 | | | - | | | 16,299 | | | 269 | | | 1,809 | | | (155 | ) | | 18,223 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Net Interest Income | | | 16,859 | | | 1 | | | 16,860 | | | (268 | ) | | (1,804 | ) | | - | | | 14,787 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Provision For Loan Loss | | | 550 | | | (29 | ) | | 521 | | | - | | | - | | | - | | | 521 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Non-interest Income | | | 7,476 | | | - | | | 7,476 | | | 20,888 | | | 1,393 | | | (2,896 | ) | | 26,861 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Non-interest Expense | | | 19,249 | | | 579 | | | 19,828 | | | 16,873 | | | 2,832 | | | (2,896 | ) | | 36,636 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Net Income Before Taxes | | | 4,536 | | | (549 | ) | | 3,987 | | | 3,747 | | | (3,243 | ) | | - | | | 4,491 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Income Taxes | | | 1,263 | | | (187 | ) | | 1,076 | | | 1,274 | | | (1,116 | ) | | - | | | 1,234 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Net Income YTD | | $ | 3,273 | | $ | (362 | ) | $ | 2,911 | | $ | 2,473 | | $ | (2,127 | ) | $ | - | | $ | 3,257 | |
| | | | | | | | | | | | | | | | | | | | | | | |
Performance Measures | | | | | | | | | | | | | | | | | | | | | | |
| Average Assets - YTD | | $ | 536,059 | | $ | 1,526 | | $ | 537,585 | | $ | 20,211 | | $ | 79,691 | | $ | (80,916 | ) | $ | 556,572 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| ROAA | | | 0.61 | % | | - | | | 0.54 | % | | 12.24 | % | | - | | | - | | | 0.59 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| Average Equity - YTD | | $ | 55,543 | | $ | 1,337 | | $ | 56,879 | | $ | 14,426 | | $ | 57,945 | | $ | (71,305 | ) | $ | 57,945 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| ROAE | | | 5.89 | % | | - | | | 6.82 | % | | 17.14 | % | | - | | | - | | | 5.62 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| Efficiency Ratio - % | | | 77.20 | % | | - | | | 80.07 | % | | 80.56 | % | | - | | | - | | | 86.23 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| Average Loans - YTD | | $ | 382,836 | | $ | 581 | | $ | 383,417 | | $ | - | | $ | - | | $ | (1,965 | ) | $ | 381,453 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Average Deposits - YTD | | $ | 420,410 | | $ | - | | $ | 420,410 | | $ | - | | $ | - | | $ | (7,642 | ) | $ | 412,767 | |
| |
Proforma Performance Measurement | |
Quarterly Comparison - Fourth Quarter 2007 | |
| | | State Bank and Trust | | RFCBC (Loan Workout Company) | | Banking Related Entities | | RDSI | | Parent Company and Other | | Intersegment Elimination Entries | | Rurban Financial Corp. | |
| | |
Average Assets | | | | | | | | | | | | | | | | | | | | | | |
| 4Q07 | | $ | 545,299 | | $ | 1,311 | | $ | 546,609 | | $ | 20,014 | | $ | 80,827 | | $ | (81,671 | ) | $ | 565,779 | |
| 3Q07 | | $ | 535,129 | | $ | 1,341 | | $ | 536,470 | | $ | 19,739 | | $ | 79,380 | | $ | (80,137 | ) | $ | 555,451 | |
| 2Q07 | | $ | 529,071 | | $ | 1,547 | | $ | 530,618 | | $ | 20,320 | | $ | 78,908 | | $ | (80,420 | ) | $ | 549,426 | |
| 1Q07 | | $ | 534,629 | | $ | 1,914 | | $ | 536,543 | | $ | 20,217 | | $ | 79,251 | | $ | (81,380 | ) | $ | 554,631 | |
| 4Q06 | | $ | 549,777 | | $ | 2,178 | | $ | 551,955 | | $ | 19,695 | | $ | 78,234 | | $ | (80,077 | ) | $ | 569,807 | |
| 4th Quarter Comparison | | $ | (4,478 | ) | $ | (867 | ) | $ | (5,346 | ) | $ | 319 | | $ | 2,593 | | $ | - | | $ | (4,028 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
Revenue | | | | | | | | | | | | | | | | | | | | | | |
| 4Q07 | | $ | 6,232 | | $ | - | | $ | 6,232 | | $ | 5,184 | | $ | (114 | ) | $ | (687 | ) | $ | 10,615 | |
| 3Q07 | | $ | 5,939 | | $ | - | | $ | 5,939 | | $ | 5,332 | | $ | (100 | ) | $ | (727 | ) | $ | 10,444 | |
| 2Q07 | | $ | 6,130 | | $ | - | | $ | 6,130 | | $ | 4,949 | | $ | (82 | ) | $ | (739 | ) | $ | 10,258 | |
| 1Q07 | | $ | 6,024 | | $ | 1 | | $ | 6,025 | | $ | 5,155 | | $ | (116 | ) | $ | (732 | ) | $ | 10,332 | |
| 4Q06 | | $ | 6,345 | | $ | 124 | | $ | 6,469 | | $ | 4,944 | | $ | 247 | | $ | (500 | ) | $ | 11,160 | |
| 4th Quarter Comparison | | $ | (113 | ) | $ | (124 | ) | $ | (237 | ) | $ | 240 | | $ | (361 | ) | $ | - | | $ | (545 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
Non-interest Expenses | | | | | | | | | | | | | | | | | | | | | | |
| 4Q07 | | $ | 4,750 | | $ | 158 | | $ | 4,908 | | $ | 4,202 | | $ | 741 | | $ | (687 | ) | $ | 9,164 | |
| 3Q07 | | $ | 4,805 | | $ | 69 | | $ | 4,874 | | $ | 4,334 | | $ | 626 | | $ | (727 | ) | $ | 9,106 | |
| 2Q07 | | $ | 4,712 | | $ | 137 | | $ | 4,849 | | $ | 4,228 | | $ | 728 | | $ | (739 | ) | $ | 9,065 | |
| 1Q07 | | $ | 4,973 | | $ | 215 | | $ | 5,188 | | $ | 4,109 | | $ | 736 | | $ | (732 | ) | $ | 9,301 | |
| 4Q06 | | $ | 5,747 | | $ | 278 | | $ | 6,025 | | $ | 4,026 | | $ | 822 | | $ | (514 | ) | $ | 10,359 | |
| 4th Quarter Comparison | | $ | (997 | ) | $ | (120 | ) | $ | (1,117 | ) | $ | 176 | | $ | (81 | ) | $ | - | | $ | (1,195 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
Net Income | | | | | | | | | | | | | | | | | | | | | | |
| 4Q07 | | $ | 934 | | $ | (98 | ) | $ | 836 | | $ | 648 | | $ | (578 | ) | $ | - | | $ | 906 | |
| 3Q07 | | $ | 714 | | $ | (39 | ) | $ | 674 | | $ | 659 | | $ | (470 | ) | $ | - | | $ | 864 | |
| 2Q07 | | $ | 917 | | $ | (87 | ) | $ | 830 | | $ | 476 | | $ | (521 | ) | $ | - | | $ | 785 | |
| 1Q07 | | $ | 707 | | $ | (136 | ) | $ | 571 | | $ | 690 | | $ | (559 | ) | $ | - | | $ | 702 | |
| 4Q06 | | $ | 569 | | $ | (89 | ) | $ | 480 | | $ | 606 | | $ | (376 | ) | $ | - | | $ | 710 | |
| 4th Quarter Comparison | | $ | 365 | | $ | (9 | ) | $ | 356 | | $ | 42 | | $ | (202 | ) | $ | - | | $ | 196 | |
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Efficiency Ratio | | | | | | | | | | | | | | | | | | | | | | |
| 4Q07 | | | 74.39 | % | | - | | | 76.93 | % | | 79.77 | % | | - | | | - | | | 84.63 | % |
| 3Q07 | | | 79.00 | % | | - | | | 80.17 | % | | 80.04 | % | | - | | | - | | | 85.47 | % |
| 2Q07 | | | 74.99 | % | | - | | | 77.23 | % | | 84.09 | % | | - | | | - | | | 86.61 | % |
| 1Q07 | | | 82.20 | % | | - | | | 85.47 | % | | 78.52 | % | | - | | | - | | | 88.33 | % |
| 4Q06 | | | 88.78 | % | | - | | | 91.37 | % | | 80.40 | % | | - | | | - | | | 91.34 | % |
| 4th Quarter Comparison | | | (14.39 | %) | | - | | | (14.44 | %) | | (0.63 | %) | | - | | | - | | | (6.71 | %) |
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NPA/Total Assets | | | | | | | | | | | | | | | | | | | | | | |
| 4Q07 | | | 1.04 | % | | - | | | - | | | - | | | - | | | - | | | 1.10 | % |
| 3Q07 | | | 1.07 | % | | - | | | - | | | - | | | - | | | - | | | 1.14 | % |
| 2Q07 | | | 1.03 | % | | - | | | - | | | - | | | - | | | - | | | 1.09 | % |
| 1Q07 | | | 0.66 | % | | - | | | - | | | - | | | - | | | - | | | 0.75 | % |
| 4Q06 | | | 0.61 | % | | - | | | - | | | - | | | - | | | - | | | 0.70 | % |
| 4th Quarter Comparison | | | 0.43 | % | | - | | | - | | | - | | | - | | | - | | | 0.40 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
ROAA | | | | | | | | | | | | | | | | | | | | | | |
| 4Q07 | | | 0.69 | % | | - | | | 0.61 | % | | 12.95 | % | | - | | | - | | | 0.64 | % |
| 3Q07 | | | 0.53 | % | | - | | | 0.50 | % | | 13.35 | % | | - | | | - | | | 0.62 | % |
| 2Q07 | | | 0.69 | % | | - | | | 0.63 | % | | 9.37 | % | | - | | | - | | | 0.57 | % |
| 1Q07 | | | 0.53 | % | | - | | | 0.43 | % | | 13.65 | % | | - | | | - | | | 0.51 | % |
| 4Q06 | | | 0.41 | % | | - | | | 0.35 | % | | 12.31 | % | | - | | | - | | | 0.50 | % |
| 4th Quarter Comparison | | | 0.28 | % | | - | | | 0.26 | % | | 0.64 | % | | - | | | - | | | 0.14 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
ROAE | | | | | | | | | | | | | | | | | | | | | | |
| 4Q07 | | | 6.57 | % | | - | | | 5.75 | % | | 17.03 | % | | - | | | - | | | 6.15 | % |
| 3Q07 | | | 5.14 | % | | - | | | 4.75 | % | | 17.89 | % | | - | | | - | | | 5.97 | % |
| 2Q07 | | | 6.68 | % | | - | | | 5.90 | % | | 13.43 | % | | - | | | - | | | 5.45 | % |
| 1Q07 | | | 5.16 | % | | - | | | 4.05 | % | | 20.63 | % | | - | | | - | | | 4.91 | % |
| 4Q06 | | | 4.20 | % | | - | | | 3.43 | % | | 19.06 | % | | - | | | - | | | 5.08 | % |
| 4th Quarter Comparison | | | 2.37 | % | | - | | | 2.32 | % | | (2.03 | %) | | - | | | - | | | 1.07 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
Average Equity | | | | | | | | | | | | | | | | | | | | | | |
| 4Q07 | | $ | 56,882 | | $ | 1,234 | | $ | 58,115 | | $ | 15,222 | | $ | 58,928 | | $ | (73,337 | ) | $ | 58,928 | |
| 3Q07 | | $ | 55,534 | | $ | 1,271 | | $ | 56,805 | | $ | 14,732 | | $ | 57,830 | | $ | (71,536 | ) | $ | 57,830 | |
| 2Q07 | | $ | 54,905 | | $ | 1,344 | | $ | 56,249 | | $ | 14,182 | | $ | 57,617 | | $ | (70,431 | ) | $ | 57,617 | |
| 1Q07 | | $ | 54,828 | | $ | 1,502 | | $ | 56,330 | | $ | 13,378 | | $ | 57,192 | | $ | (69,708 | ) | $ | 57,192 | |
| 4Q06 | | $ | 54,249 | | $ | 1,714 | | $ | 55,963 | | $ | 12,721 | | $ | 55,963 | | $ | (68,684 | ) | $ | 55,963 | |
| 4th Quarter Comparison | | $ | 2,633 | | $ | (480 | ) | $ | 2,152 | | $ | 2,501 | | $ | 2,965 | | $ | - | | $ | 2,965 | |
