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RBNF: Rurban Financial Corp. Reports Third Quarter 2006 Earnings of $814,000, Up 65.3% over Third Quarter 2005
Wednesday October 18, 9:18 pm ET


DEFIANCE, Ohio, Oct. 18 /PRNewswire-FirstCall/ -- Rurban Financial Corp. (Nasdaq: RBNF - News), a diversified provider of full-service community banking, investment management, trust services and bank data processing, today reported third quarter 2006 earnings. Highlights of the quarter include:

- Net income of $814,000, up $322,000 or 65.3 percent, compared with
net income of $492,000 reported for the third quarter of 2005. Diluted
earnings per share were $0.16 for the current quarter, up 45.5 percent
from $0.11 reported for the 2005 third quarter; average diluted shares
outstanding increased 10.0 percent year-over-year.

- Consolidated non-performing assets at 2006 third quarter-end, including
RFCBC, the loan workout subsidiary, were $6.1 million or 1.07 percent
of total assets, compared with $15.0 million or 3.43 percent of assets
for the prior-year third quarter.

- On October 10th, Rurban announced that it filed an application to open
a full-service banking center in Fort Wayne, Indiana where it presently
has a Loan Production Office.

- Since January 1, 2006, Rurban's Banking Group, consisting of The State
Bank and Trust Company and The Exchange Bank, reported organic loan
growth of $37.3 million, or 11.4 percent (15.2 percent annualized).
Deposit growth since year-end 2005 was $27.3 million or 7.1 percent
(9.5 percent annualized).

- The Company's efficiency ratio was 88.15 percent for the consolidated
entity. The efficiency of the Banking Group continues to reduce from
93.53 percent a year-ago to 84.01 percent for the current quarter.

- RDSI, the data processing subsidiary, reported a strong quarter with
revenue of $4.1 million, up 22.3 percent from third quarter last year.
Net income of $478,000 was $187,000 or 64.3 percent higher. RDSI
completed its acquisition of Lansing, Michigan based Diverse Computer
Marketers (DCM) on September 2, 2006. DCM will operate as a subsidiary
of RDSI.

Kenneth A. Joyce, President and Chief Executive Officer, commented, "We continue to make progress as a result of the initiatives we began in 2005. Rurban had solid core earnings for three consecutive quarters and the expense of the expansion initiatives has been moderating throughout 2006. We believe we are now positioned to achieve greater growth and profitability as we take Rurban into new markets and products."


Full read and balance sheets:
http://biz.yahoo.com/prnews/061018/clw043.html?.v=71