Exhibit 99.1
Immediate Release
Investor Contact: Valda Colbart, 419-784-2759, rfcinv@rurban.net
RURBAN FINANCIAL CORP. REPORTS 2008 EARNINGS INCREASED
60 PERCENT FROM PREVIOUS YEAR’S RESULTS
DEFIANCE, Ohio, January 21, 2009 — Rurban Financial Corp. (NASDAQ: RBNF), a leading provider of full-service community banking, investment management, trust services and bank data and item processing, reported 2008 earnings of $5.22 million, or $1.06 per diluted share, an increase of approximately 60.2 percent from the $3.26 million, or $0.65 per diluted share, reported in 2007. The 2008 results include thirty-one days of operation of the five banking centers acquired in the National Bank of Montpelier (“Montpelier”) acquisition and the associated acquisition charges.
Fourth quarter 2008 earnings were $1.33 million, or $0.27 per diluted share, compared with fourth quarter 2007 earnings of $906,000, or $0.18 per diluted share, an increase of approximately 46.7 percent.
Earnings for the 2008 fourth quarter included one-time after-tax charges of $76,000 related to the Corporation’s acquisition of Montpelier. The Corporation also recorded an after-tax charge of $66,000, reducing the mortgage servicing rights value on the Corporation’s $71.1 million serviced mortgage loan portfolio, as a result of the recent drop in mortgage rates.
Highlights of fourth quarter 2008 include:
| | · | The State Bank and Trust Company (“State Bank”), Rurban’s banking subsidiary, completed the acquisition of Montpelier, with five branches located in Williams County, on December 1, 2008. The acquisition was valued at $25.0 million. This acquisition increases State Bank’s banking center locations from 17 to 22. The acquisition is expected to be immediately accretive to earnings. |
| | · | The turmoil in the banking industry during the majority of the year, and especially the fourth quarter, had many institutions electing to participate in the Government’s TARP/CPP program. After thorough consideration of the program’s advantages and disadvantages, Rurban Financial Corp. and its Board elected not to participate in the program due to Rurban’s strong capital position and the TARP program’s uncertainties relative to the Government’s intervention and expectation relative to the funds’ usage. |
| | · | State Bank expanded its reach into Columbus, Ohio’s high volume mortgage market by adding a Mortgage Origination Group to the Columbus Loan Production Office. |
| · | Asset quality essentially remained stable, with non-performing assets declining slightly to 1.00 percent of total assets. Net charge-offs remained moderate and significantly below peers at 0.19 percent of total loans for 2008. |
“We have made substantial progress in all business units within Rurban during 2008,” commented Ken Joyce, Rurban’s CEO. Joyce continued, “The leading drivers of profitability gains at State Bank were significant improvements in net interest margin, consistent and sound underwriting, prudent loan growth, improvement in mortgage banking production, and continued attention to expense controls. A key component of our growth plan is strategic acquisitions with the resultant organization being immediately accretive. In concert with our Strategic Plan, we successfully completed the acquisition of National Bank of Montpelier this year, which we believe will be immediately accretive.”
RDSI, Rurban’s technology subsidiary, which provides data and item processing services to the banking industry, produced another outstanding earnings period with net income for 2008 up 14.0 percent over 2007. Joyce commented, “The economic environment has certainly been difficult throughout 2008, impacting RDSI. However, our management team has been able to navigate through these problems by adding value, controlling expenses, and consistently improving our service to our client banks.”
2008 FINANCIAL RESULTS
| Earnings: | | Year Ended December 31 | |
| (Dollars in thousands except per share data) | | 2008 | | | 2007 | |
| Net interest income | | $ | 17,528 | | | $ | 14,787 | |
| Non-interest income | | | 28,061 | | | | 26,861 | |
| Total revenue | | | 45,589 | | | | 41,648 | |
| Provision for loan losses | | | 690 | | | | 521 | |
| Non-interest expense | | | 37,557 | | | | 36,637 | |
| Net income | | | 5,217 | | | | 3,257 | |
| Diluted EPS | | $ | 1.06 | | | $ | 0.65 | |
Net interest income was $17.5 million for 2008 compared to $14.8 million for 2007, an increase of 18.5 percent, which primarily resulted from improved margin. State Bank had been actively managing the balance sheet to a liability sensitive position, which has aided in the rapid decrease in cost of funds during the past twelve months. The consolidated 2008, or full year, margin improved 43 basis points to 3.53 percent for 2008, compared to 3.10 percent for 2007.
Non-interest income was $28.1 million for 2008 compared to $26.9 million for 2007, representing a $1.20 million, or 4.46 percent, increase year-over-year. This increase was driven by a $783,000, or 4.04 percent, increase in Data Service Fees. Increases in Customer Service Fees of $172,000, or 7.68 percent, and gains on sale of loans of $167,000, or 29.1 percent, were offset by decreases in Trust Fees of $303,000, or 8.96 percent. The continued decline in the equity markets has negatively impacted trust fees, which are generally calculated on invested balances. The improved Customer Service Fees and gain on sale of loans are a result of State Bank’s continuing focus on its High Performance Checking program, well-developed referral program, and improving cross-selling of additional products.
Non-interest expense increased for 2008 nominally by $920,000, or 2.51 percent. The acquisition of Montpelier contributed approximately $250,000 of this increase, primarily from the December operating expenses and the one-time acquisition cost disclosed above. During 2008, RDSI switched from outsourcing their preparation and mailing activities to managing these mailings in-house. This increased Postage Expense by $760,000 during 2008 and this pass-through was offset by increases in revenue. RDSI also experienced an increase in non-federal taxes as it expanded into newer markets and sales tax expense in these new markets increased. Rurban controlled compensation and benefits with a mere 1.83 percent increase year-over-year. These increases were offset by expense reductions in Equipment Expenses (RDSI) and Professional Fees associated with loan workouts (State Bank).
FOURTH QUARTER RESULTS
| Earnings: | | Fourth Quarter Ended December 31 | |
| (Dollars in thousands except per share data) | | 2008 | | | 2007 | |
| Net interest income | | $ | 4,830 | | | $ | 3,783 | |
| Non-interest income | | | 6,755 | | | | 6,832 | |
| Revenue | | | 11,585 | | | | 10,615 | |
| Provision (credit) for loan losses | | | 138 | | | | 143 | |
| Non-interest expense | | | 9,566 | | | | 9,165 | |
| Net income (loss) | | | 1,328 | | | | 906 | |
| Diluted EPS | | $ | 0.27 | | | $ | 0.18 | |
Net interest income increased to $4.83 million for the quarter, compared to $3.78 million for the fourth quarter of 2007. This 27.7 percent increase, is due to a 63 basis point improvement in State Bank’s net interest margin for the quarter-over-quarter period. Net interest income also increased due to the Montpelier acquisition and the recovery of $275,000 in interest collected on non-accrual loans that were resolved. State Bank continues to aggressively manage pricing on both loans and deposits, and has successfully navigated through a very difficult banking and rate environment.
Non-interest income was essentially unchanged at $6.76 million for 2008 and $6.83 million for 2007. Slight increases in data service fees and improved gain on sale of loans were offset by a sharp decline in trust fees. The decline in the equity market valuations was the cause of the reduction in trust fees.
Non-interest expense for the year-over-year fourth quarter increased $401,000, or 4.38 percent. As stated earlier, the Montpelier acquisition, which was completed on December 1, 2008, contributed $250,000 of this one-time costs incurred in connection with the increase. Excluding the cost associated with Montpelier, operating expenses increased $151,000, or 1.65 percent. Expenses were well-controlled, as increases in non-federal taxes and RDSI’s decision to bring postage operations in-house were offset by reductions in Equipment Expense at RDSI and Professional Fees (State Bank), due to lower loan work-out expenses.
CONSOLIDATED BALANCE SHEET
As a result of the Montpelier acquisition, total assets at December 31, 2008 were $657.6 million compared to $585.0 million at September 30, 2008. Net loans (excluding loans held for sale) were $450.1 million at December 31, 2008 compared to $399.9 million at September 30, 2008. Total deposits were $484.2 million at year-end 2008, compared to $406.5 million at September 30, 2008. Non-interest bearing deposits at December 31, 2008 were $52.2 million, compared to $40.9 million at September 30, 2008. Total shareholder’s equity increased to $61.7 million at year-end 2008, compared to $60.1 million at September 30, 2008. Because the Montpelier acquisition was an all cash purchase, no additional shares were issued. At December 31, 2007 total assets were $561.2 million, net loans were $389.3 million, deposits were $406.0 million, non-interest bearing deposits were $41.5 million and equity was $59.3 million.
BANK OPERATING RESULTS
Mr. Joyce commented, “We are pleased to report a $1.6 million increase in our Banking Group’s 2008 YTD net income over 2007. Our banking model is firmly established, and Mark Klein, State Bank CEO, and his management team, are executing that model very effectively. We expect to continue to build our loan balances in 2009 in our various markets and maintain tight control on asset quality and expenses. As we stated in previous press releases, the Montpelier acquisition is immediately accretive to net income, earnings per share and return on equity. We would expect to fully realize the benefits of this acquisition by the third quarter of 2009. These incremental earnings will be an offset to the challenges we are facing within the banking industry and more specifically, our trust division, as equity balances decline.
Net income for the Banking Group was $4.5 million for 2008, compared with $2.9 million reported for the prior fiscal year.
Total loans were $450.1 million at December 31, 2008, including the contribution from Montpelier. Excluding Montpelier, organic loan growth in 2008 totaled $16.6 million, or 4.27 percent. Commercial loans were the only category that had significant growth during 2008, up $35.7 million, or 14.1 percent, to $288.9 million.
Total deposits at December 31, 2008 were $484.2 million, including the addition of Montpelier, compared to $406.0 million at December 31, 2007. The cost of deposits dropped to 1.89 percent for the fourth quarter 2008, compared to the year-ago quarter of 3.20 percent. “This reduction in funding cost is attributable to the successful management of the balance sheet to a liability sensitive position that took advantage of falling interest rates throughout 2008. We are now focusing on extending our liabilities and shortening the duration of assets to become more “asset sensitive” to position our balance sheet for increasing interest rates,” commented Mr. Joyce. “Our acquisition has positioned us to fund loan growth in 2009 with core transaction deposits versus higher cost alternative funds,” continued Joyce. Rurban’s deposit mix continues to shift toward core transaction deposits (DDA, NOW, SAV & MMA), which accounted for 49.9 percent of total deposits for 2008, compared with 45.0 percent at prior year-end.
ASSET QUALITY
Provision for Loan Losses was $690,000 in 2008 compared to $521,000 in 2007. The 2008 fourth quarter provision for loan losses was $138,000 compared to $143,000 for the year-ago quarter. For 2008, the net charge-offs totaled $764,000, or 0.19 percent of average loans. Net charge-offs for the fourth quarter decreased slightly compared to the linked quarter to $280,000, or 0.27 percent, of average loans on an annualized basis.
| (Dollars in thousands except percent data) | | | | | | | | | |
| | | | | | | | | | |
| ASSET QUALITY | | | 4Q 2008 | | | | 3Q 2008 | | | | 4Q 2007 | |
| Net charge-offs | | $ | 280 | | | $ | 336 | | | $ | 89 | |
| Net charge-offs to avg. loans (Annualized) | | | 0.27 | % | | | 0.33 | % | | | 0.09 | % |
| Non-performing loans | | $ | 5,178 | | | $ | 4,659 | | | $ | 5,990 | |
| OREO + OAO | | $ | 1,409 | | | $ | 1,611 | | | $ | 172 | |
| Non-performing assets (NPA’s) | | $ | 6,587 | | | $ | 6,270 | | | $ | 6,162 | |
| NPA / Total assets | | | 1.00 | % | | | 1.07 | % | | | 1.10 | % |
| Allowance for loan losses | | $ | 5,020 | | | $ | 4,057 | | | $ | 3,990 | |
| Allowance for loan losses / Loans | | | 1.12 | % | | | 1.01 | % | | | 1.03 | % |
Non-performing assets (loans + OREO + OAO) were $6.59 million, or 1.00 percent, of total assets at December 31, 2008, an increase of $317,000 from the linked quarter, and an increase of $425,000 from a year-ago. The acquisition of Montpelier contributed $845,000 in non-performing assets at year-end. Asset quality remains stable as we enter 2009. Consistent with external economic conditions, State Bank is seeing a slight increase in delinquencies within all segments of its portfolio, however, the current levels are not significant or alarming. The State Bank has managed through a difficult 2008, but it is not insulated from the economic factors facing the industry in 2009.
RDSI RESULTS
Revenue for the Data and Item Processing Group was $21.6 million, up $946,000, or 4.6 percent, over the $20.6 million reported for year-end 2007. Operating expenses totaled $17.3 million in 2008, compared to $16.9 million in 2007, reflecting a nominal $422,000, or 2.50 percent increase. RDSI offered over 150 products to a total of 113 community banks at year-end 2008, and it launched nine new products to help its client banks achieve their goals during 2008.
Net Income for the 2008 fiscal year was $2.82 million, compared to $2.47 million for 2007, up $346,000, or 14.0 percent. “RDSI experienced solid growth in 2008, and we have positive expectations as eight bank conversions are currently scheduled for 2009 and there is a strong pipeline of prospects,” said Mr. Joyce.
Mr. Joyce concluded, “RDSI has always prided itself in providing outstanding customer service and value and delivering on that promise. These factors were certainly instrumental in RDSI attaining record earnings in 2008. We welcomed six new banking clients to our RDSI family roster, and among our existing clients, 206 additional products were purchased that will improve their efficiencies, or allow the offering of new products and services.”
ABOUT RURBAN FINANCIAL CORP.
Rurban Financial Corp. is a publicly-held financial services holding company based in Defiance, Ohio. Rurban’s wholly-owned subsidiaries are The State Bank and Trust Company, including Reliance Financial Services and Rurbanc Data Services, Inc. (RDSI), including DCM. The State Bank and Trust Company offers financial services through its 22 banking centers in Allen, Defiance, Fulton, Lucas, Paulding, Williams and Wood Counties, Ohio and Allen County, Indiana and a Loan Production Office in Franklin County, Ohio. Reliance Financial Services, a division of the Bank, offers a diversified array of trust and financial services to customers throughout the Midwest. RDSI and DCM provide data and item processing services to community banks in Arkansas, Florida, Illinois, Indiana, Michigan, Missouri, Nebraska, Nevada, Ohio and Wisconsin. Rurban’s common stock is quoted on the NASDAQ Global Market under the symbol RBNF. The Company currently has 10,000,000 shares of stock authorized and 4,877,838 shares outstanding. The Company's website is http://www.rurbanfinancial.net.
Forward-Looking Statements
Certain statements within this document, which are not statements of historical fact, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties and actual results may differ materially from those predicted by the forward-looking statements. These risks and uncertainties include, but are not limited to, risks and uncertainties inherent in the national and regional banking, insurance and mortgage industries, competitive factors specific to markets in which Rurban and its subsidiaries operate, future interest rate levels, legislative and regulatory actions, capital market conditions, general economic conditions, geopolitical events, the loss of key personnel and other factors.
Forward-looking statements speak only as of the date on which they are made, and Rurban undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made. All subsequent written and oral forward-looking statements attributable to Rurban or any person acting on our behalf are qualified by these cautionary statements.
RURBAN FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS
December 31, 2008 and December 31, 2007
| | | December | | | December | |
| | | 2008 | | | 2007 | |
| | | (Unaudited) | | | | |
| ASSETS | | | | | | |
| Cash and due from banks | | $ | 18,059,532 | | | $ | 15,183,627 | |
| Federal funds sold | | | 10,000,000 | | | | 2,000,000 | |
| Cash and cash equivalents | | | 28,059,532 | | | | 17,183,627 | |
| Available-for-sale securities | | | 102,606,475 | | | | 92,661,386 | |
| Loans held for sale | | | 3,824,499 | | | | 1,649,758 | |
| Loans, net of unearned income | | | 450,111,653 | | | | 389,268,744 | |
| Allowance for loan losses | | | (5,020,197 | ) | | | (3,990,455 | ) |
| Premises and equipment, net | | | 17,621,262 | | | | 15,128,754 | |
| Purchased software | | | 5,867,395 | | | | 4,282,563 | |
| Federal Reserve and Federal Home Loan Bank Stock | | | 4,244,100 | | | | 4,021,200 | |
| Foreclosed assets held for sale, net | | | 1,384,335 | | | | 124,131 | |
| Accrued interest receivable | | | 2,964,663 | | | | 3,008,968 | |
| Goodwill | | | 21,414,790 | | | | 13,940,618 | |
| Core deposits and other intangibles | | | 5,835,936 | | | | 5,135,228 | |
| Cash value of life insurance | | | 12,625,015 | | | | 12,160,581 | |
| Other assets | | | 6,079,451 | | | | 6,638,895 | |
| | | | | | | | | |
| Total assets | | $ | 657,618,909 | | | $ | 561,213,998 | |
| | | | | | | | | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | | | |
| Deposits | | | | | | | | |
| Non interest bearing demand | | $ | 52,242,626 | | | $ | 41,541,297 | |
| Interest bearing NOW | | | 73,123,095 | | | | 54,308,665 | |
| Savings | | | 34,313,586 | | | | 25,320,126 | |
| Money Market | | | 82,025,074 | | | | 61,380,252 | |
| Time Deposits | | | 242,516,203 | | | | 223,480,842 | |
| Total deposits | | | 484,220,584 | | | | 406,031,182 | |
| Notes payable | | | 1,000,000 | | | | 922,457 | |
| Advances from Federal Home Loan Bank | | | 36,646,854 | | | | 24,000,000 | |
| Repurchase Agreements | | | 43,425,978 | | | | 43,006,438 | |
| Trust preferred securities | | | 20,620,000 | | | | 20,620,000 | |
| Accrued interest payable | | | 1,965,842 | | | | 2,532,914 | |
| Other liabilities | | | 8,077,647 | | | | 4,775,773 | |
| | | | | | | | | |
| Total liabilities | | | 595,956,905 | | | | 501,888,764 | |
| | | | | | | | | |
| Shareholders' Equity | | | | | | | | |
| Common stock | | | 12,568,583 | | | | 12,568,583 | |
| Additional paid-in capital | | | 15,042,781 | | | | 14,923,571 | |
| Retained earnings | | | 35,785,317 | | | | 32,361,106 | |
| Accumulated other comprehensive income (loss) | | | (121,657 | ) | | | 82,235 | |
| Treasury stock | | | (1,613,020 | ) | | | (610,260 | ) |
| | | | | | | | | |
| Total shareholders' equity | | | 61,662,004 | | | | 59,325,235 | |
| | | | | | | | | |
| Total liabilities and shareholders' equity | | $ | 657,618,909 | | | $ | 561,213,998 | |
RURBAN FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
| | | Three Months Ended | | | Twelve Months Ended | |
| | | December 31, | | | December 31, | |
| | | 2008 | | | 2007 | | | 2008 | | | 2007 | |
| Interest income | | | | | | | | | | | | |
| Loans | | | | | | | | | | | | |
| Taxable | | $ | 6,905,698 | | | $ | 7,056,261 | | | $ | 27,473,302 | | | $ | 27,782,068 | |
| Tax-exempt | | | 20,934 | | | | 22,240 | | | | 84,878 | | | | 73,451 | |
| Securities | | | | | | | | | | | | | | | | |
| Taxable | | | 1,023,333 | | | | 1,106,834 | | | | 4,289,728 | | | | 4,283,508 | |
| Tax-exempt | | | 252,488 | | | | 161,830 | | | | 686,458 | | | | 645,451 | |
| Other | | | 3,655 | | | | 61,257 | | | | 134,079 | | | | 225,151 | |
| Total interest income | | | 8,206,108 | | | | 8,408,422 | | | | 32,668,445 | | | | 33,009,629 | |
| | | | | | | | | | | | | | | | | |
| Interest expense | | | | | | | | | | | | | | | | |
| Deposits | | | 2,092,363 | | | | 3,383,225 | | | | 10,066,325 | | | | 13,595,896 | |
| Other borrowings | | | 9,216 | | | | 25,215 | | | | 53,008 | | | | 165,859 | |
| Retail Repurchase Agreements | | | 444,563 | | | | 484,118 | | | | 1,821,330 | | | | 1,615,016 | |
| Federal Home Loan Bank advances | | | 411,937 | | | | 276,492 | | | | 1,508,115 | | | | 1,037,026 | |
| Trust preferred securities | | | 418,017 | | | | 456,427 | | | | 1,691,792 | | | | 1,808,520 | |
| Total interest expense | | | 3,376,096 | | | | 4,625,477 | | | | 15,140,570 | | | | 18,222,317 | |
| | | | | | | | | | | | | | | | | |
| Net interest income | | | 4,830,012 | | | | 3,782,945 | | | | 17,527,875 | | | | 14,787,312 | |
| | | | | | | | | | | | | | | | | |
| Provision for loan losses | | | 138,179 | | | | 142,663 | | | | 689,567 | | | | 521,306 | |
| | | | | | | | | | | | | | | | | |
| Net interest income after provision | | | | | | | | | | | | | | | | |
| for loan losses | | | 4,691,833 | | | | 3,640,282 | | | | 16,838,308 | | | | 14,266,006 | |
| | | | | | | | | | | | | | | | | |
| Non-interest income | | | | | | | | | | | | | | | | |
| Data service fees | | | 5,004,376 | | | | 4,914,328 | | | | 20,165,451 | | | | 19,382,115 | |
| Trust fees | | | 630,331 | | | | 873,069 | | | | 3,081,898 | | | | 3,385,320 | |
| Customer service fees | | | 591,053 | | | | 593,665 | | | | 2,416,093 | | | | 2,243,745 | |
| Net gain on sales of loans | | | 150,238 | | | | 137,611 | | | | 740,985 | | | | 574,000 | |
| Net realized gain on sales of securities | | | - | | | | 1,631 | | | | - | | | | 1,998 | |
| Net proceeds from VISA IPO | | | - | | | | - | | | | 132,106 | | | | - | |
| Investment securities recoveries | | | - | | | | - | | | | 197,487 | | | | - | |
| Loan servicing fees | | | 59,579 | | | | 80,590 | | | | 235,095 | | | | 227,017 | |
| Gain (loss) on sale of assets | | | 96,124 | | | | (32,362 | ) | | | 247,517 | | | | 29,477 | |
| Other income | | | 223,653 | | | | 263,583 | | | | 844,105 | | | | 1,017,727 | |
| Total non-interest income | | | 6,755,354 | | | | 6,832,115 | | | | 28,060,737 | | | | 26,861,399 | |
| | | | | | | | | | | | | | | | | |
| Non-interest expense | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | | 4,204,104 | | | | 4,134,242 | | | | 17,318,103 | | | | 17,007,314 | |
| Net occupancy expense | | | 567,120 | | | | 587,150 | | | | 2,170,616 | | | | 2,134,950 | |
| Equipment expense | | | 1,562,031 | | | | 1,678,311 | | | | 6,308,564 | | | | 6,586,623 | |
| Data processing fees | | | 105,741 | | | | 97,092 | | | | 427,251 | | | | 469,808 | |
| Professional fees | | | 514,314 | | | | 586,327 | | | | 1,859,447 | | | | 2,226,577 | |
| Marketing expense | | | 246,770 | | | | 218,549 | | | | 831,727 | | | | 820,528 | |
| Printing and office supplies | | | 132,862 | | | | 151,943 | | | | 554,267 | | | | 661,760 | |
| Telephone and communication | | | 427,927 | | | | 451,918 | | | | 1,686,834 | | | | 1,781,277 | |
| Postage and delivery expense | | | 515,129 | | | | 376,777 | | | | 2,165,098 | | | | 1,545,340 | |
| State, local and other taxes | | | 382,670 | | | | 115,441 | | | | 985,503 | | | | 584,031 | |
| Employee expense | | | 277,730 | | | | 281,682 | | | | 1,084,028 | | | | 1,083,056 | |
| Other expenses | | | 629,611 | | | | 485,154 | | | | 2,165,175 | | | | 1,735,346 | |
| Total non-interest expense | | | 9,566,009 | | | | 9,164,586 | | | | 37,556,613 | | | | 36,636,610 | |
| | | | | | | | | | | | | | | | | |
| Income before income tax expense | | | 1,881,178 | | | | 1,307,811 | | | | 7,342,432 | | | | 4,490,795 | |
| Income tax expense | | | 553,159 | | | | 402,275 | | | | 2,125,193 | | | | 1,234,160 | |
| | | | | | | | | | | | | | | | | |
| Net income | | $ | 1,328,019 | | | $ | 905,536 | | | $ | 5,217,239 | | | $ | 3,256,635 | |
| | | | | | | | | | | | | | | | | |
| Earnings per common share: | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.27 | | | $ | 0.18 | | | $ | 1.06 | | | $ | 0.65 | |
| Diluted | | $ | 0.27 | | | $ | 0.18 | | | $ | 1.06 | | | $ | 0.65 | |
| RURBAN FINANCIAL CORP. | | | | | | | | | | | | |
| CONSOLIDATED FINANCIAL HIGHLIGHTS | | | | | | | | | | | | |
| (Unaudited) | | | | | | | | | | | | |
| | | Three Months Ended | | | Twelve Months Ended | |
| | | December 31, | | | December 31, | |
| (dollars in thousands except per share data) | | 2008 | | | 2007 | | | 2008 | | | 2007 | |
| | | | | | | | | | | | | |
| EARNINGS | | | | | | | | | | | | |
| Net interest income | | $ | 4,830 | | | $ | 3,783 | | | $ | 17,528 | | | $ | 14,787 | |
| Provision for loan loss | | $ | 138 | | | $ | 143 | | | $ | 690 | | | $ | 521 | |
| Non-interest income | | $ | 6,755 | | | $ | 6,832 | | | $ | 28,061 | | | $ | 26,861 | |
| Revenue (net interest income plus non-interest income) | | $ | 11,585 | | | $ | 10,615 | | | $ | 45,589 | | | $ | 41,648 | |
| Non-interest expense | | $ | 9,566 | | | $ | 9,165 | | | $ | 37,557 | | | $ | 36,637 | |
| Net income | | $ | 1,328 | | | $ | 906 | | | $ | 5,217 | | | $ | 3,257 | |
| | | | | | | | | | | | | | | | | |
| PER SHARE DATA | | | | | | | | | | | | | | | | |
| Basic earnings per share | | $ | 0.27 | | | $ | 0.18 | | | $ | 1.06 | | | $ | 0.65 | |
| Diluted earnings per share | | $ | 0.27 | | | $ | 0.18 | | | $ | 1.06 | | | $ | 0.65 | |
| Book value per share | | $ | 12.63 | | | $ | 11.92 | | | $ | 12.63 | | | $ | 11.92 | |
| Tangible book value per share | | $ | 7.48 | | | $ | 8.00 | | | $ | 7.48 | | | $ | 8.00 | |
| Cash dividend per share | | $ | 0.09 | | | $ | 0.07 | | | $ | 0.34 | | | $ | 0.26 | |
| | | | | | | | | | | | | | | | | |
| PERFORMANCE RATIOS | | | | | | | | | | | | | | | | |
| Return on average assets | | | 0.88 | % | | | 0.64 | % | | | 0.91 | % | | | 0.59 | % |
| Return on average equity | | | 8.75 | % | | | 6.15 | % | | | 8.70 | % | | | 5.62 | % |
| Net interest margin (tax equivalent) | | | 3.83 | % | | | 3.12 | % | | | 3.53 | % | | | 3.10 | % |
| Net interest margin - banking group | | | 4.06 | % | | | 3.43 | % | | | 3.80 | % | | | 3.46 | % |
| Non-interest expense / Average assets | | | 6.31 | % | | | 6.48 | % | | | 6.53 | % | | | 6.58 | % |
| Efficiency Ratio - bank (non-GAAP) | | | 73.15 | % | | | 76.93 | % | | | 72.48 | % | | | 80.07 | % |
| | | | | | | | | | | | | | | | | |
| MARKET DATA PER SHARE | | | | | | | | | | | | | | | | |
| Market value per share — Period end | | $ | 7.60 | | | $ | 12.49 | | | $ | 7.60 | | | $ | 12.49 | |
| Market as a % of book | | | 60 | % | | | 105 | % | | | 60 | % | | | 105 | % |
| Cash dividend yield | | | 4.74 | % | | | 2.24 | % | | | 4.47 | % | | | 2.08 | % |
| Period-end common shares outstanding (000) | | | 4,881 | | | | 4,979 | | | | 4,881 | | | | 4,979 | |
| Common stock market capitalization ($000) | | $ | 37,099 | | | $ | 62,188 | | | $ | 37,099 | | | $ | 62,188 | |
| | | | | | | | | | | | | | | | | |
| CAPITAL & LIQUIDITY | | | | | | | | | | | | | | | | |
| Equity to assets | | | 9.4 | % | | | 10.6 | % | | | 9.4 | % | | | 10.6 | % |
| Period-end tangible equity to tangible assets | | | 5.8 | % | | | 7.1 | % | | | 5.8 | % | | | 7.1 | % |
| Total risk-based capital ratio (Estimate) | | | 13.2 | % | | | 16.0 | % | | | 13.2 | % | | | 16.0 | % |
| | | | | | | | | | | | | | | | | |
| ASSET QUALITY | | | | | | | | | | | | | | | | |
Net charge-offs / (Recoveries) | | $ | 280 | | | $ | 89 | | | $ | 764 | | | $ | 248 | |
| Net loan charge-offs (Ann.) / Average loans | | | 0.27 | % | | | 0.09 | % | | | 0.19 | % | | | 0.07 | % |
| Non-performing loans | | $ | 5,178 | | | $ | 5,990 | | | $ | 5,178 | | | $ | 5,990 | |
| OREO / OAOs | | $ | 1,409 | | | $ | 172 | | | $ | 1,409 | | | $ | 172 | |
| Non-performing assets | | $ | 6,587 | | | $ | 6,162 | | | $ | 6,587 | | | $ | 6,162 | |
| Non-performing assets / Total assets | | | 1.00 | % | | | 1.10 | % | | | 1.00 | % | | | 1.10 | % |
| Allowance for loan losses / Total loans | | | 1.12 | % | | | 1.03 | % | | | 1.12 | % | | | 1.03 | % |
| Allowance for loan losses / Non-performing assets | | | 76.2 | % | | | 64.8 | % | | | 76.2 | % | | | 64.8 | % |
| | | | | | | | | | | | | | | | | |
| END OF PERIOD BALANCES | | | | | | | | | | | | | | | | |
| Total loans, net of unearned income | | $ | 450,112 | | | $ | 389,269 | | | $ | 450,112 | | | $ | 389,269 | |
| Allowance for loan loss | | $ | 5,020 | | | $ | 3,990 | | | $ | 5,020 | | | $ | 3,990 | |
| Total assets | | $ | 657,619 | | | $ | 561,214 | | | $ | 657,619 | | | $ | 561,214 | |
| Deposits | | $ | 484,221 | | | $ | 406,031 | | | $ | 484,221 | | | $ | 406,031 | |
| Stockholders' equity | | $ | 61,662 | | | $ | 59,325 | | | $ | 61,662 | | | $ | 59,325 | |
| Full-time equivalent employees | | | 306 | | | | 275 | | | | 306 | | | | 275 | |
| | | | | | | | | | | | | | | | | |
| AVERAGE BALANCES | | | | | | | | | | | | | | | | |
| Loans | | $ | 412,222 | | | $ | 389,529 | | | $ | 401,770 | | | $ | 381,453 | |
| Total earning assets | | $ | 518,707 | | | $ | 496,782 | | | $ | 508,250 | | | $ | 488,289 | |
| Total assets | | $ | 606,655 | | | $ | 565,779 | | | $ | 575,491 | | | $ | 556,572 | |
| Deposits | | $ | 431,076 | | | $ | 413,473 | | | $ | 408,042 | | | $ | 412,767 | |
| Stockholders' equity | | $ | 60,686 | | | $ | 58,928 | | | $ | 59,964 | | | $ | 57,945 | |
| | | | | | | | | | | | | | | | |
| RURBAN FINANCIAL CORP. | | | | | | | | | | | | | | | |
| CONSOLIDATED FINANCIAL HIGHLIGHTS | | | | | | | | | | | | | | | |
| (Unaudited) | | | | | | | | | | | | | | | |
| | | 4th Qtr | | | 3rd Qtr | | | 2nd Qtr | | | 1st Qtr | | | 4th Qtr | |
| (dollars in thousands except per share data) | | 2008 | | | 2008 | | | 2008 | | | 2008 | | | 2007 | |
| | | | | | | | | | | | | | | | |
| EARNINGS | | | | | | | | | | | | | | | |
| Net interest income | | $ | 4,830 | | | $ | 4,448 | | | $ | 4,432 | | | $ | 3,817 | | | $ | 3,783 | |
| Provision for loan loss | | $ | 138 | | | $ | 146 | | | $ | 213 | | | $ | 192 | | | $ | 143 | |
| Non-interest income | | $ | 6,755 | | | $ | 6,989 | | | $ | 6,801 | | | $ | 7,516 | | | $ | 6,832 | |
| Revenue (net interest income plus non-interest income) | | $ | 11,585 | | | $ | 11,437 | | | $ | 11,233 | | | $ | 11,333 | | | $ | 10,615 | |
| Non-interest expense | | $ | 9,566 | | | $ | 9,279 | | | $ | 9,111 | | | $ | 9,601 | | | $ | 9,165 | |
| Net income | | $ | 1,328 | | | $ | 1,424 | | | $ | 1,356 | | | $ | 1,109 | | | $ | 906 | |
| | | | | | | | | | | | | | | | | | | | | |
| PER SHARE DATA | | | | | | | | | | | | | | | | | | | | |
| Basic earnings per share | | $ | 0.27 | | | $ | 0.29 | | | $ | 0.28 | | | $ | 0.22 | | | $ | 0.18 | |
| Diluted earnings per share | | $ | 0.27 | | | $ | 0.29 | | | $ | 0.28 | | | $ | 0.22 | | | $ | 0.18 | |
| Book value per share | | $ | 12.64 | | | $ | 12.25 | | | $ | 12.08 | | | $ | 12.11 | | | $ | 11.92 | |
| Tangible book value per share | | $ | 7.48 | | | $ | 8.65 | | | $ | 8.41 | | | $ | 8.10 | | | $ | 8.00 | |
| Cash dividend per share | | $ | 0.09 | | | $ | 0.09 | | | $ | 0.08 | | | $ | 0.08 | | | $ | 0.07 | |
| | | | | | | | | | | | | | | | | | | | | |
| PERFORMANCE RATIOS | | | | | | | | | | | | | | | | | | | | |
| Return on average assets | | | 0.88 | % | | | 0.99 | % | | | 0.94 | % | | | 0.78 | % | | | 0.64 | % |
| Return on average equity | | | 8.75 | % | | | 9.54 | % | | | 9.09 | % | | | 7.50 | % | | | 6.15 | % |
| Net interest margin (tax equivalent) | | | 3.83 | % | | | 3.56 | % | | | 3.55 | % | | | 3.26 | % | | | 3.12 | % |
| Net interest margin (Bank Only) | | | 4.06 | % | | | 3.84 | % | | | 3.83 | % | | | 3.45 | % | | | 3.43 | % |
| Non-interest expense / Average assets | | | 6.31 | % | | | 6.44 | % | | | 6.29 | % | | | 6.77 | % | | | 6.48 | % |
| Efficiency Ratio - bank (non-GAAP) | | | 73.15 | % | | | 71.13 | % | | | 69.85 | % | | | 75.90 | % | | | 76.93 | % |
| | | | | | | | | | | | | | | | | | | | | |
| MARKET DATA PER SHARE | | | | | | | | | | | | | | | | | | | | |
| Market value per share — Period end | | $ | 7.60 | | | $ | 9.00 | | | $ | 9.52 | | | $ | 10.24 | | | $ | 12.49 | |
| Market as a % of book | | | 60 | % | | | 73 | % | | | 79 | % | | | 85 | % | | | 105 | % |
| Cash dividend yield | | | 4.74 | % | | | 4.00 | % | | | 3.36 | % | | | 3.13 | % | | | 2.24 | % |
| Period-end common shares outstanding (000) | | | 4,881 | | | | 4,906 | | | | 4,914 | | | | 4,942 | | | | 4,979 | |
| Common stock market capitalization ($000) | | $ | 37,099 | | | $ | 44,154 | | | $ | 46,781 | | | $ | 50,605 | | | $ | 62,188 | |
| | | | | | | | | | | | | | | | | | | | | |
| CAPITAL & LIQUIDITY | | | | | | | | | | | | | | | | | | | | |
| Equity to assets | | | 9.4 | % | | | 10.3 | % | | | 10.3 | % | | | 10.5 | % | | | 10.6 | % |
| Period-end tangible equity to tangible assets | | | 5.8 | % | | | 7.5 | % | | | 7.4 | % | | | 7.2 | % | | | 7.1 | % |
| Total risk-based capital ratio (Estimate) | | | 13.2 | % | | | 16.2 | % | | | 15.7 | % | | | 15.8 | % | | | 16.0 | % |
| | | | | | | | | | | | | | | | | | | | | |
| ASSET QUALITY | | | | | | | | | | | | | | | | | | | | |
Net charge-offs / (Recoveries) | | $ | 280 | | | $ | 336 | | | $ | (18 | ) | | $ | 166 | | | $ | 89 | |
| Net loan charge-offs (Ann.) / Average loans | | | 0.27 | % | | | 0.33 | % | | | (0.02 | )% | | | 0.17 | % | | | 0.09 | % |
| Non-performing loans | | $ | 5,178 | | | $ | 4,659 | | | $ | 5,141 | | | $ | 5,305 | | | $ | 5,990 | |
| OREO / OAOs | | $ | 1,409 | | | $ | 1,611 | | | $ | 1,566 | | | $ | 1,662 | | | $ | 172 | |
| Non-performing assets | | $ | 6,587 | | | $ | 6,270 | | | $ | 6,707 | | | $ | 6,967 | | | $ | 6,162 | |
| Non-performing assets / Total assets | | | 1.00 | % | | | 1.07 | % | | | 1.16 | % | | | 1.22 | % | | | 1.10 | % |
| Allowance for loan losses / Total loans | | | 1.12 | % | | | 1.01 | % | | | 1.04 | % | | | 1.02 | % | | | 1.03 | % |
| Allowance for loan losses / Non-performing assets | | | 76.2 | % | | | 64.7 | % | | | 63.3 | % | | | 57.6 | % | | | 64.8 | % |
| | | | | | | | | | | | | | | | | | | | | |
| END OF PERIOD BALANCES | | | | | | | | | | | | | | | | | | | | |
| Total loans, net of unearned income | | $ | 450,112 | | | $ | 399,910 | | | $ | 404,435 | | | $ | 391,963 | | | $ | 389,269 | |
| Allowance for loan loss | | $ | 5,020 | | | $ | 4,057 | | | $ | 4,247 | | | $ | 4,016 | | | $ | 3,990 | |
| Total assets | | $ | 657,619 | | | $ | 585,022 | | | $ | 576,513 | | | $ | 571,733 | | | $ | 561,214 | |
| Deposits | | $ | 484,221 | | | $ | 406,454 | | | $ | 402,558 | | | $ | 416,712 | | | $ | 406,031 | |
| Stockholders' equity | | $ | 61,662 | | | $ | 60,117 | | | $ | 59,362 | | | $ | 59,870 | | | $ | 59,325 | |
| Full-time equivalent employees | | | 306 | | | | 271 | | | | 273 | | | | 272 | | | | 275 | |
| | | | | | | | | | | | | | | | | | | | | |
| AVERAGE BALANCES | | | | | | | | | | | | | | | | | | | | |
| Loans | | $ | 412,222 | | | $ | 401,790 | | | $ | 404,756 | | | $ | 389,917 | | | $ | 389,529 | |
| Total earning assets | | $ | 518,707 | | | $ | 506,760 | | | $ | 510,521 | | | $ | 498,731 | | | $ | 496,782 | |
| Total assets | | $ | 606,655 | | | $ | 576,774 | | | $ | 579,004 | | | $ | 567,129 | | | $ | 565,779 | |
| Deposits | | $ | 431,076 | | | $ | 403,064 | | | $ | 412,080 | | | $ | 412,424 | | | $ | 413,473 | |
| Stockholders' equity | | $ | 60,686 | | | $ | 59,717 | | | $ | 59,671 | | | $ | 59,149 | | | $ | 58,928 | |
Rurban Financial Corp.
Segment Reporting
Fourth Quarter Ended December 31, 2008
($ in Thousands)
| | | Total Banking | | | Data Processing | | | Parent Company and Other | | | Elimination Entries | | | Rurban Financial Corp. | |
| Income Statement Measures | | | | | | | | | | | | | | | |
| Interest Income | | $ | 8,213 | | | $ | - | | | $ | 1 | | | $ | (8 | ) | | $ | 8,206 | |
| | | | | | | | | | | | | | | | | | | | | |
| Interest Expense | | | 2,953 | | | | 13 | | | | 418 | | | | (8 | ) | | | 3,376 | |
| | | | | | | | | | | | | | | | | | | | | |
| Net Interest Income | | | 5,260 | | | | (13 | ) | | | (417 | ) | | | - | | | | 4,830 | |
| | | | | | | | | | | | | | | | | | | | | |
| Provision For Loan Loss | | | 138 | | | | - | | | | - | | | | - | | | | 138 | |
| | | | | | | | | | | | | | | | | | | | | |
| Non-interest Income | | | 1,747 | | | | 5,394 | | | | 399 | | | | (785 | ) | | | 6,755 | |
| | | | | | | | | | | | | | | | | | | | | |
| Non-interest Expense | | | 5,254 | | | | 4,299 | | | | 798 | | | | (785 | ) | | | 9,566 | |
| | | | | | | | | | | | | | | | | | | | | |
| Net Income QTD | | $ | 1,146 | | | $ | 715 | | | $ | (533 | ) | | $ | - | | | $ | 1,328 | |
| | | | | | | | | | | | | | | | | | | | | |
| Performance Measures | | | | | | | | | | | | | | | | | | | | |
| Average Assets -QTD | | $ | 596,469 | | | $ | 19,804 | | | $ | 82,775 | | | $ | (92,393 | ) | | $ | 606,655 | |
| | | | | | | | | | | | | | | | | | | | | |
| ROAA | | | 0.77 | % | | | 14.44 | % | | | - | | | | - | | | | 0.88 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Average Equity - QTD | | $ | 63,224 | | | $ | 15,816 | | | $ | 60,686 | | | $ | (79,040 | ) | | $ | 60,686 | |
| | | | | | | | | | | | | | | | | | | | | |
| ROAE | | | 7.25 | % | | | 18.08 | % | | | - | | | | - | | | | 8.75 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Efficiency Ratio - % | | | 73.15 | % | | | - | | | | - | | | | - | | | | 80.93 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Average Loans - QTD | | $ | 412,819 | | | $ | - | | | $ | - | | | $ | (597 | ) | | $ | 412,222 | |
| | | | | | | | | | | | | | | | | | | | | |
| Average Deposits - QTD | | $ | 435,235 | | | $ | - | | | $ | - | | | $ | (4,159 | ) | | $ | 431,076 | |
Rurban Financial Corp.
Segment Reporting
Twelve Months Ended December 31, 2008
($ in Thousands)
| | | Total Banking | | | Data Processing | | | Parent Company and Other | | | Elimination Entries | | | Rurban Financial Corp. | |
| Income Statement Measures | | | | | | | | | | | | | | | |
| Interest Income | | $ | 32,745 | | | $ | 1 | | | $ | 2 | | | $ | (79 | ) | | $ | 32,669 | |
| | | | | | | | | | | | | | | | | | | | | |
| Interest Expense | | | 13,417 | | | | 111 | | | | 1,692 | | | | (79 | ) | | | 15,141 | |
| | | | | | | | | | | | | | | | | | | | | |
| Net Interest Income | | | 19,328 | | | | (110 | ) | | | (1,690 | ) | | | - | | | | 17,528 | |
| | | | | | | | | | | | | | | | | | | | | |
| Provision For Loan Loss | | | 690 | | | | - | | | | - | | | | - | | | | 690 | |
| | | | | | | | | | | | | | | | | | | | | |
| Non-interest Income | | | 7,748 | | | | 21,676 | | | | 1,636 | | | | (2,999 | ) | | | 28,061 | |
| | | | | | | | | | | | | | | | | | | | | |
| Non-interest Expense | | | 20,088 | | | | 17,295 | | | | 3,172 | | | | (2,999 | ) | | | 37,556 | |
| | | | | | | | | | | | | | | | | | | | | |
| Net Income YTD | | $ | 4,513 | | | $ | 2,819 | | | $ | (2,115 | ) | | $ | - | | | $ | 5,217 | |
| | | | | | | | | | | | | | | | | | | | | |
| Performance Measures | | | | | | | | | | | | | | | | | | | | |
| Average Assets -YTD | | $ | 565,395 | | | $ | 20,060 | | | $ | 82,030 | | | $ | (91,994 | ) | | $ | 575,491 | |
| | | | | | | | | | | | | | | | | | | | | |
| ROAA | | | 0.80 | % | | | 14.05 | % | | | - | | | | - | | | | 0.91 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Average Equity - YTD | | $ | 60,396 | | | $ | 15,797 | | | $ | 59,964 | | | $ | (76,193 | ) | | $ | 59,964 | |
| | | | | | | | | | | | | | | | | | | | | |
| ROAE | | | 7.47 | % | | | 17.85 | % | | | - | | | | - | | | | 8.70 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Efficiency Ratio - % | | | 72.48 | % | | | - | | | | - | | | | - | | | | 80.82 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Average Loans - YTD | | $ | 403,302 | | | $ | - | | | $ | - | | | $ | (1,532 | ) | | $ | 401,770 | |
| | | | | | | | | | | | | | | | | | | | | |
| Average Deposits - YTD | | $ | 422,311 | | | $ | - | | | $ | - | | | $ | (14,269 | ) | | $ | 408,042 | |
Rurban Financial Corp.
Proforma Performance Measurement
Quarterly Comparison - Fourth Quarter 2008
($ in Thousands)
| | | Total Banking | | | Data Processing | | | Parent Company and Other | | | Elimination Entries | | | Rurban Financial Corp. | |
| Revenue | | | | | | | | | | | | | | | |
| 4Q08 | | $ | 7,007 | | | $ | 5,381 | | | $ | (18 | ) | | $ | (785 | ) | | $ | 11,585 | |
| 3Q08 | | $ | 6,877 | | | $ | 5,294 | | | $ | 5 | | | $ | (738 | ) | | $ | 11,438 | |
| 2Q08 | | $ | 6,729 | | | $ | 5,285 | | | $ | (15 | ) | | $ | (766 | ) | | $ | 11,233 | |
| 1Q08 | | $ | 6,464 | | | $ | 5,606 | | | $ | (27 | ) | | $ | (710 | ) | | $ | 11,333 | |
| 4Q07 | | $ | 6,232 | | | $ | 5,184 | | | $ | (114 | ) | | $ | (687 | ) | | $ | 10,615 | |
| 4th Quarter Comparison | | $ | 775 | | | $ | 197 | | | $ | 96 | | | $ | - | | | $ | 970 | |
| | | | | | | | | | | | | | | | | | | | | |
| Non-interest Expenses | | | | | | | | | | | | | | | | | | | | |
| 4Q08 | | $ | 5,254 | | | $ | 4,299 | | | $ | 798 | | | $ | (785 | ) | | $ | 9,566 | |
| 3Q08 | | $ | 5,003 | | | $ | 4,286 | | | $ | 728 | | | $ | (738 | ) | | $ | 9,279 | |
| 2Q08 | | $ | 4,812 | | | $ | 4,316 | | | $ | 748 | | | $ | (766 | ) | | $ | 9,110 | |
| 1Q08 | | $ | 5,018 | | | $ | 4,394 | | | $ | 899 | | | $ | (710 | ) | | $ | 9,601 | |
| 4Q07 | | $ | 4,908 | | | $ | 4,202 | | | $ | 742 | | | $ | (687 | ) | | $ | 9,164 | |
| 4th Quarter Comparison | | $ | 346 | | | $ | 97 | | | $ | 56 | | | $ | - | | | $ | 402 | |
| | | | | | | | | | | | | | | | | | | | | |
| Net Income | | | | | | | | | | | | | | | | | | | | |
| 4Q08 | | $ | 1,146 | | | $ | 715 | | | $ | (533 | ) | | $ | - | | | $ | 1,328 | |
| 3Q08 | | $ | 1,233 | | | $ | 664 | | | $ | (473 | ) | | $ | - | | | $ | 1,424 | |
| 2Q08 | | $ | 1,217 | | | $ | 640 | | | $ | (501 | ) | | $ | - | | | $ | 1,356 | |
| 1Q08 | | $ | 917 | | | $ | 800 | | | $ | (608 | ) | | $ | - | | | $ | 1,109 | |
| 4Q07 | | $ | 836 | | | $ | 648 | | | $ | (578 | ) | | $ | - | | | $ | 906 | |
| 4th Quarter Comparison | | $ | 310 | | | $ | 67 | | | $ | 45 | | | $ | - | | | $ | 422 | |
| | | | | | | | | | | | | | | | | | | | | |
| Average Assets | | | | | | | | | | | | | | | | | | | | |
| 4Q08 | | $ | 596,469 | | | $ | 19,804 | | | $ | 82,775 | | | $ | (92,393 | ) | | $ | 606,655 | |
| 3Q08 | | $ | 557,306 | | | $ | 20,344 | | | $ | 81,707 | | | $ | (82,583 | ) | | $ | 576,774 | |
| 2Q08 | | $ | 560,223 | | | $ | 20,214 | | | $ | 81,579 | | | $ | (83,011 | ) | | $ | 579,004 | |
| 1Q08 | | $ | 547,502 | | | $ | 20,103 | | | $ | 81,297 | | | $ | (81,773 | ) | | $ | 567,129 | |
| 4Q07 | | $ | 546,609 | | | $ | 20,014 | | | $ | 80,827 | | | $ | (81,671 | ) | | $ | 565,779 | |
| 4th Quarter Comparison | | $ | 49,860 | | | $ | (210 | ) | | $ | 1,948 | | | $ | - | | | $ | 40,876 | |
| | | | | | | | | | | | | | | | | | | | | |
| ROAA | | | | | | | | | | | | | | | | | | | | |
| 4Q08 | | | 0.77 | % | | | 14.44 | % | | | - | | | | - | | | | 0.88 | % |
| 3Q08 | | | 0.88 | % | | | 13.06 | % | | | - | | | | - | | | | 0.99 | % |
| 2Q08 | | | 0.87 | % | | | 12.66 | % | | | - | | | | - | | | | 0.94 | % |
| 1Q08 | | | 0.67 | % | | | 15.92 | % | | | - | | | | - | | | | 0.78 | % |
| 4Q07 | | | 0.61 | % | | | 12.95 | % | | | - | | | | - | | | | 0.64 | % |
| 4th Quarter Comparison | | | 0.16 | % | | | 1.49 | % | | | - | | | | - | | | | 0.24 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Average Equity | | | | | | | | | | | | | | | | | | | | |
| 4Q08 | | $ | 63,224 | | | $ | 15,816 | | | $ | 60,686 | | | $ | (79,040 | ) | | $ | 60,686 | |
| 3Q08 | | $ | 59,899 | | | $ | 16,063 | | | $ | 59,717 | | | $ | (75,962 | ) | | $ | 59,717 | |
| 2Q08 | | $ | 59,395 | | | $ | 15,861 | | | $ | 59,671 | | | $ | (75,256 | ) | | $ | 59,671 | |
| 1Q08 | | $ | 59,044 | | | $ | 15,282 | | | $ | 59,149 | | | $ | (74,326 | ) | | $ | 59,149 | |
| 4Q07 | | $ | 58,115 | | | $ | 15,222 | | | $ | 58,928 | | | $ | (73,337 | ) | | $ | 58,928 | |
| 4th Quarter Comparison | | $ | 5,109 | | | $ | 594 | | | $ | 1,758 | | | $ | - | | | $ | 1,758 | |
| | | | | | | | | | | | | | | | | | | | | |
| ROAE | | | | | | | | | | | | | | | | | | | | |
| 4Q08 | | | 7.25 | % | | | 18.08 | % | | | - | | | | - | | | | 8.75 | % |
| 3Q08 | | | 8.23 | % | | | 16.53 | % | | | - | | | | - | | | | 9.54 | % |
| 2Q08 | | | 8.20 | % | | | 16.14 | % | | | - | | | | - | | | | 9.09 | % |
| 1Q08 | | | 6.21 | % | | | 20.94 | % | | | - | | | | - | | | | 7.50 | % |
| 4Q07 | | | 5.75 | % | | | 17.03 | % | | | - | | | | - | | | | 6.15 | % |
| 4th Quarter Comparison | | | 1.50 | % | | | 1.05 | % | | | - | | | | - | | | | 2.60 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Efficiency Ratio | | | | | | | | | | | | | | | | | | | | |
| 4Q08 | | | 73.15 | % | | | 73.15 | % | | | - | | | | - | | | | 80.92 | % |
| 3Q08 | | | 71.13 | % | | | 79.79 | % | | | - | | | | - | | | | 79.60 | % |
| 2Q08 | | | 69.85 | % | | | 80.50 | % | | | - | | | | - | | | | 79.56 | % |
| 1Q08 | | | 75.90 | % | | | 77.28 | % | | | - | | | | - | | | | 83.19 | % |
| 4Q07 | | | 76.68 | % | | | 79.77 | % | | | - | | | | - | | | | 84.49 | % |
| 4th Quarter Comparison | | | (3.53 | )% | | | (6.62 | )% | | | - | | | | - | | | | (3.57 | )% |
