Sb Financial Group, Inc. · NASDAQ:SBFG
Sb Financial — Rurban Financial — Investor Presentation (October 2011)
24 slides from Sb Financial's investor presentation, Oct 17, 2011
Slide 1: Slide 1
Slide 2: Building Momentum... Forward-Looking Statements
RURBAN FINANCIAL CORP. Building Momentum... Mark A. Klein President and CEQ October 17, 201 Forward-Looking Statements sntupeted tutte palornanceec forwertlonenroatenentavrin thermore fie Pete cuties agstonSotorm At 396 sed throne encherle anduncartmtrthst could enue raatece Aewloprenst dil oicany f
Slide 3: We Are Here to Talk About... Who We Are
We Are Here to Talk About... * Where we are today ... and how we got here © Where we want to be. and how we plan to get there Who We Are: Rurban Financial Corp. * Headquartered in Defiance, Ohio + $018 milion in assets + Daleverage strategy * Two primary businesses, +The state Bank and Trust Compeny
Slide 4: Our Organization & Our Team
Our Organization & Our Team urban Financial Corp 4+ Mack Gein President ane £0 REN + Tony Cosentino ~ EVP ane CFO + este ile ~5v2 Audit ms The State Bank 4+ Jon Gethman—£0P and Senor Lander + Das Andercon Lima Regional Prescent + Davia Homoete~Columbus Regional Present + Jon Kendzel~ flaca Regional
Slide 5: Our Organization & Our Team; Our Footprint
Our Organization & Our Team ADSL Banking stems, + Gary Seamen ~Fresident + erenat— eve Payment selutions + doe Bucrhe~ SVP, Network Services (7) + amremer—Eve, hie formation omcer + Worne Sweyse VP, DOM Item Processing BBN Our Footprint in NW Ohio... and Beyond past five years: © willams County * Fr
Slide 6: Where We Are Today... and How We Got Here
RFC Netaean Where We Are Today... and How We Got Here
Slide 7: Net Income; Five Years of Market Expansion
Net Income $5,217 2008 2008 2010 dune 2011 YTD, RFC mState Bank Five Years of Market Expansion ‘assets Acquired (Ei sine - 2 branches in Lima $12miion December = Exchange Baneshares 85 mon EBB september - OC verse Copter Marites) (Ei -lenuary — Opened Fort Wayne orice Devernber — Opened Columbus LPO
Slide 8: Efficiency Measures
Efficiency Measures Anruatzes Exoenee Reaucion (6) o<000— cost Hotnd ranch ot Echo Bonk 200 hound March — Consolation of Exchange Bank, Reance Financial Services, NA, and Rurban Operations Corp. nia State Bank romstenet DFT — 51.250 mtn Docambor — Reduction of eta 2F7=) “$a78 moueand BB acn— closed
Slide 9: Loan Portfolio: Signs of Stability
Loan Portfolio: Signs of Stability Peer Group 75 12/20/2010 | 6720/2011 | _ Percentil NPAs +80 PD/ Loans + OREO 309% 230% 319% NPLs +50 PD/ Total Loans pai = LaS% 1.08% Loan Loss Reserve (Total Loans iste Lar 264% Loan Loss Reserve/NPL 54.70% 75.0% 79.61% TM NCOs / Aug. Loans. 249% Los 029% Past Due
Slide 10: Loan Growth
Loan Growth SST BaseLoans me Lima Ac, Exchange Acq, Montpelier Acq. sto = sass MEA g aaa zoos. 2007 2a08 2008.2 20.2011 REC Rae Consumer Loans Closed Consumer Loan approvals Number of Aporovals ees ee ee g more faiity MAUD SOthersecured Unsecured RFCs
Slide 11: Deposit Mix: Strong Local Presence
Deposit Mix: Strong Local Presence othe 1, Deposit Portfolio = copia $496 million oA re en Sevnge, 10% Growth of Local, Low-Cost Deposits eae 7 $518 g99 | mNor-interest Bearing Demand Interest Bearing NOW msevings Money Market wrtal Time Brokered Deposits 202011
Slide 12: Mortgage Banking Activity
Mortgage Banking Activity eer: = LEN ? WN 2 \e an 2009 102010 22010 302010 402010 102011 202011 RFC anaes Mortgage Servicing Portfolio $400,000 $350,000 $300,000 q $250,000 $200,000 = $150,000 $100,000 $71,138 $50,000 | $39.528 so Spans 2325288 $704,830 2007 = 7008-2008 2010 202011 sa serving portol
Slide 13: Reliance Financial Services
RELIANCE FINANGIAL SERVICES Reliance Financial Services Reliance Financial Services Quality Wealth Management in Our Own Backyard * Investment plans — to achieve client objectives * Continuous monitoring and fine-tuning — 6justs to changes in ife events = a0justs to the economy Trust services Retire
Slide 14: Reliance Financial History
Reliance Financial History June 2011 zuvs | aoe | zoe | zo | 200 (3000) Meeene «SHES SONNET $278,003 SO02471 SIIEESI —Si25.000, oD ea leanlaslesles| a= Ceres $237 eT staat Meco rig amas santana Banking Systems RDSI Banking Systems [RFC ete
Slide 15: RDSI Banking Systems - Business Lines
RDSI Banking Systems - Business Lines * Payment Solutions (DCM Item Processing, Image Exchange, and LPS!) * Network Services RDSI Banking Systems 2m 2010- _hoaied — le ausis [svoase | sinsea _ssard Sore ee eee | Netneone Je also | esses) und ‘Apr.2009: Deceion to merge ADS and Nev Care Helingssnnoun
Slide 16: RDSI Year in Review
RDSI Year in Review Reduced FTE by 45 (last 12 months) * Item Processing Clients Retained ~ 28/32 Expenses reduced by $15,856 million (une 2010 June 2011) DP to State Bank REC area RURBAN FINANCIAL CORP. Where We Want to Be... and How We Plan to Get There [RFC Rn
Slide 17: The Rurban Vision for 2014
The Rurban Vision for 2014 To become a high-performing (top-quartile) community-focused, financial services provider ee Strategic Priorities -State Bank ~ One Company ~ One Culture ~ Organic growth in urban markets * Organizational synergies. Growth of fee-based businesses (trust, loan sale gains, i
Slide 18: Strategic Vision - State Bank
Strategic Vision - State Bank * A community-based, integrated financial services company * Led by strong regional presidents who “own” the delivery channels * Supported by product/business line experts and high quality operations [RFC ee State Bank Value Proposition “Your Financial Services Partner
Slide 19: Recent Major Initiatives
Recent Major Initiatives © Flattened the organization * Pay for performance © Referrals / share of wallet * Regional Executives / In-Market Team Leaders * Functional Support © Optimize RDSI RCS Referrals by Year 2300 2000 macros 3500 acosed 3000 500 2007 = 2008 2008 zolo 20201 smuvm —sscaum seca sso
Slide 20: Rurban's Strategic Initiatives
Rurban’s Strategic Initiatives ‘Deliver prudent growth with appropriate net interest margin ‘+ Maintain vigiant oversight of credit underwriting and administration + mass sufficiant ca pital for soundness and growth + Deploy resources to markets with highest potential + Generate higher anc more cive
Slide 21: Benchmarking: Profitability Measures
RURBAN FINANCIAL CORP. Tony Cosentino Chief Financial Officer Benchmarking Profitability Measures “army fatum on Seete © 0» Nommeresthcome/aeases @ 138 os oss ‘pln Meases a ttaency Rao 7388 7230 6595 Nonineses Expense / vg Assets 1s a0 2a Numba of Offeas 0 B 20 Deposit pr OFce yee a3289 55.289 > Tal
Slide 22: Benchmarking
Benchmarking © © Puente 7011 en m7 “Tota Rise Based Capital Ratio Feaeshte gery arpacie ees 0 450 a7 1070 seas |e) | ‘Loan Growth Rate /ann.) © 448 (120) 619 ‘toans/Depesits © 20 ssa jaa, * pajste Hsdng Company crs of Furia FarclO ——— as Benchmarking © 24 quarter 2011 Margin Measures SS barons Yield
Slide 23: Economic Headwinds
Economic Headwinds * GDP 2% 2011; 2% 2012 * Unemployment ~9% Global Economic Slump * Financial Deleveraging * Regulatory Burdens * Political Uncertainties * Domestic Debt 67% of GDP REC Seg Discussion Items Dodd-Frank Act Basel I|| Capital Accord * Small Business Lending Bill * Economic Activity [RF
Slide 24: Thank you for joining us. Any questions?
“Greatness is not a function of circumstance. Greatness, it turns out, is largely a matter of conscious choice, and discipline.” -- Jim Collins Thank you for joining us. Any questions?
Rurban Financial — Investor Presentation (October 2011) on 6ix