Sb Financial Group, Inc. · NASDAQ:SBFG

Sb Financial — Rurban Financial — Shareholder Meeting (April 2007)

39 slides from Sb Financial's shareholder meeting presentation, Apr 19, 2007

  1. Slide 1: Annual Meeting April 19, 2007

    Annual Meeting April 19, 2007

  2. Slide 2: Advisory Board Members – SB&T

    Rurban Financial Corp. Advisory Board Members – SB&T Fulton County Paulding County Jim McDonnall Floyd Furrow Ed Nofziger John Kauser Joe O’Neil Dr. John Saxton William Toedter Ronda Stabler Lima Region Jim Stahl Pat Chaney Rex Williamson Joseph Guagenti Ron Miller Tim Stolly

  3. Slide 3: Steve VanDemark

    STEVE VANDEMARK ¾Chairman, Rurban Financial Corp. ¾Chairman, The State Bank and Trust Company ¾Director, RDSI

  4. Slide 4: Directors

    Rurban Financial Corp. Directors Tom Buis Ken Joyce Tom Callan* Rita Kissner John Compo Tom Sauer John Fahl Steve VanDemark* Bob Fawcett Mike Walz Dick Hardgrove*

  5. Slide 5: Director Committees

    Rurban Financial Corp. Director Committees ¾ Audit Committee Chairman: Bob Fawcett Financial Expert: Dick Hardgrove ¾ Compensation Committee Chairman: John Fahl ¾ Executive Compliance Committee Chairman: Steve VanDemark ¾ Governance and Nominating Committee Chairman: Tom Buis ¾ Loan Review Committee

  6. Slide 6: Directors of Subsidiaries

    Rurban Financial Corp. Directors of Subsidiaries RDSI SB&T Ken Joyce, Chairman RFC Directors Don DeWitt Mark Klein Jeff Sewell John Schock Hank Thiemann Steve VanDemark John Weimerskirk

  7. Slide 7: Annual Meeting Agenda

    Rurban Financial Corp. Annual Meeting Agenda ¾Structure, Strategy, Progress and Future Ken Joyce, President and CEO Duane Sinn, Chief Financial Officer ¾Questions and Answers ¾Adjourn

  8. Slide 8: Ken Joyce and Duane L. Sinn

    Rurban Financial Corp. Ken Joyce President and CEO Duane L. Sinn Chief Financial Officer

  9. Slide 9: Profile

    Rurban Financial Corp. Profile ¾Headquartered in Defiance, Ohio ¾ Two primary business lines • Community banking • Data and item processing for banks ¾$549 million in assets ¾Listed on NASDAQ Global market: RBNF ¾Web Site: www.rurbanfinancial.net

  10. Slide 10: Structure

    Rurban Financial Corp. Structure Rurban Financial Corp. Nasdaq Symbol: RBNF The State Bank RDSI and Trust Company & Reliance Financial Services DCM

  11. Slide 11: Banking Footprint

    Rurban Financial Corp. Banking Footprint ¾ Indiana Counties ¾ Ohio Counties •Allen •Allen •Defiance •Fulton •Lucas •Paulding •Wood

  12. Slide 12: Data and Item Processing Footprint

    Rurban Financial Corp. Data and Item Processing Footprint ● States having a Banking Client of RDSI or DCM

  13. Slide 13: A Successful Banking Turnaround

    Rurban Financial Corp. A Successful Banking Turnaround ¾ The Timeline • 2001 to 2002: The Recognition Phase ƒ Took $36.3 million provision (≈ 5% of assets) • 2003 to 2006: The Restructuring Phase ƒ Sold $305 million bank to recapitalize ƒ Formed workout subsidiary to address problem loans ƒ Restruct

  14. Slide 14: Community Banking Strategy

    Rurban Financial Corp. Community Banking Strategy ¾ Profit Improvement • Loan Growth • Interest Margin Strategies • Non-interest Income Initiatives • Expense Control ¾ Asset quality focus ¾ Asset growth -- Organic & Acquisitions

  15. Slide 15: Community Banking: Loan Growth

    Community Banking: Profit Improvement Loan Growth Loan Growth $400 $370 $373 $360 $364 $360 $338 $327 $320 $272 $271 $266 $280 $240 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr 2005 2006 2007

  16. Slide 16: Loan Growth Strategies

    Community Banking: Profit Improvement Loan Growth ¾Loan Growth Strategies ƒ Geographic expansion to higher-growth potential markets ƒ Purchased two Lima, Ohio branches in June 2005 ƒ Purchased The Exchange Bank in Toledo suburbs on Dec. 31, 2005 ƒ Full Service Branch Opened in January 2007 in Fort W

  17. Slide 17: Loan Growth Strategies

    Community Banking: Profit Improvement Loan Growth ¾Loan Growth Strategies • Management changes ƒ The State Bank and Trust Company: Mark Klein ƒ Lima Region: David Anderson ƒ Fort Wayne Region: David Schnepp • Introduction of a sales culture ƒ 3,900 sales calls in 2006 ƒ Over 300 closed referrals ƒ T

  18. Slide 18: Managing Interest Margin

    Community Banking: Profit Improvement Managing Interest Margin Net Interest Margin 4.00% 3.50% 3.37% 3.00% 3.25% 3.10% 3.04% 2.92% 2.50% 2.00% 1st Qtr 2006 2nd Qtr 2006 3rd Qtr 2006 4th Qtr 2006 1st Qtr 2007

  19. Slide 19: Interest Margin Improvement Strategies

    Community Banking: Profit Improvement Managing Interest Margin ¾ Interest Margin Improvement Strategies • Restructuring of Balance Sheet • Increase core deposits through a program beginning May 1st • Strengthen loan pricing through implementation of a Loan Pricing Model used for pricing commercial c

  20. Slide 20: Expense Reduction

    Community Banking: Profit Improvement Expense Reduction ¾ Expense Reduction • Merger of three charters completed in first quarter ƒ Exchange Bank ƒ Trust Company Merger • Expense Reductions ƒ Target: $1.0 to $1.5 million • Merger-related savings • Staff reductions ƒ Actual Savings • $1.8 million • R

  21. Slide 21: Asset Quality Improvement Strategies

    Community Banking: Profit Improvement Asset Quality Improvement Strategies ¾Asset Quality Improvement Strategies • Ongoing focus on quality loan production • Control mechanisms in place and operating • No significant non-performing assets since 2002 ƒ $100,000 threshold ƒ Over 50% of current NPAs ar

  22. Slide 22: Continued Asset Quality Improvement: Net Charge-Offs

    Community Banking: Profit Improvement Continued Asset Quality Improvement Net Charge-Offs as % of Average Loans 5.00% 3.69% 4.00% 3.06% 3.00% 1.81% 2.00% 1.00% 0.52% 0.33% 0.04% 0.00% 2002 2003 2004 2005 2006 1Q '07

  23. Slide 23: Continued Asset Quality Improvement: Non-Performing Assets

    Community Banking: Profit Improvement Continued Asset Quality Improvement Non-Performing Assets as a % of Total Assets 5.00% 4.10% 4.00% 3.57% 3.43% 3.00% 1.67% 2.00% 1.64% 1.07% 1.07% 0.70% 0.75% 1.00% 0.00% 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2005 2006 2007

  24. Slide 24: Community Banking Summary

    Community Banking: Profit Improvement Summary ¾ Summary: Improving Banking Net Income • Continuing loan growth • Margin improvement • Expense Control • Branch optimization program is continuing • Fee income generation is improving ƒ Guarantee loan sale expertise (SBA, USDA, etc) ƒ Mortgage banking r

  25. Slide 25: Reliance Financial Services Business Unit Profile

    Community Banking: Investment Management Business Unit Profile ¾Reliance Financial Services • Trust Services ƒ Personal trust / estate planning ƒ Employee benefit plans • Investment services • Assets Under Management: $348 Million as of 12/31/06

  26. Slide 26: Investment Management Net Income Growth

    Community Banking: Investment Management Net Income Growth Net Income ($ thousands) $800 ($ thousands) $715 $637 $600 $473 $413 $400 $200 $82 $0 2002 2003 2004 2005 2006

  27. Slide 27: Strategies for Improving Reliance's Net Income

    Community Banking: Investment Management Improving Net Income ¾ Strategies for Improving Reliance’s Net Income • Expand into larger bank footprint ƒ Multi-year effort (long sales cycle) ƒ Lima and Toledo, OH and Ft. Wayne, IN • Maintain strong investment performance ƒ Consistently outperform market

  28. Slide 28: RDSI Company Profile

    Data and Item Processing: RDSI Company Profile ¾Company Profile • Regional processor: 8 states • Data processing: 65 banks • Item Processing: 35 banks • DCM: Subsidiary of RDSI ƒ Acquisition completed: September 2006 ƒ Item Processing Clients: 50 banks

  29. Slide 29: RDSI Revenue Growth

    Data and Item Processing: RDSI Revenue Growth Historic Revenue Growth ($ in millions) ($ millions) $18.00 $16.3 $16.00 5-Year CAGR = 14.4% $13.8 $14.00 $11.8 $12.00 $10.5 $9.6 $10.00 $8.00 2002 2003 2004 2005 2006

  30. Slide 30: RDSI Net Income Growth

    Data and Item Processing: RDSI Net Income Growth Historic Net Income Growth ($ in millions) $2.20 $2.10 5-year CAGR = 13.8% $1.92 0.16 $1.80 $1.72 $1.76 $1.51 $1.50 $.08 $1.40 $1.43 $1.00 2002 2003 2004 2005 2006 Net Income Tax credits

  31. Slide 31: Strategies for Improving RDSI Net Income

    Data and Item Processing: RDSI Improving RDSI Net Income ¾Strategies for Improving RDSI Net Income • Revenue growth ƒ Expansion into additional states ƒ Sales initiatives – new and existing client sales ƒ Acquisitions • Product expansion ƒ In 2000: 23 products ƒ In 2006: 117 products • “Check 21” ef

  32. Slide 32: Quarterly Income

    Rurban Financial Corp. (RBNF) Quarterly Income ($ thousands) RESTRUCTURING PHASE RECOVERY PHASE $814 $714 $710 $702 $638 $523 $492 $(114) $(344) 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07

  33. Slide 33: 2005 – 2006 Financial Highlights

    Rurban Financial Corp. (RBNF) 2005 – 2006 Financial Highlights Year End ($000) 12/31/06 12/31/05 Assets (millions) $556.0 $530.5 Net Interest Income 15,035 12,054 Provision for Loan Losses 178 583 Non-Interest Income 23,755 18,338 Non-Interest Expense 34,904 29,054 Net Income 2,760 673 Diluted EPS $

  34. Slide 34: 2007 1st Quarter Results

    Rurban Financial Corp. (RBNF) 2007 1st Quarter Results ($000) 1Q07 1Q06 Assets (millions) $548.9 $538.2 Net Interest Income 3,593 3,864 Provision for Loan Losses 93 246 Non-Interest Income 6,739 5,008 Non-Interest Expense 9,300 7,950 Net Income 702 523 Diluted EPS $0.14 $0.10

  35. Slide 35: Stock Price History

    Rurban Financial Corp. (RBNF) Stock Price History RECOGNITION RESTRUCTURING RECOVERY $18.00 $16.00 $14.00 $12.00 $10.00 $8.00 1Q'02 2Q'02 3Q'02 4Q'02 1Q'03 2Q'03 3Q'03 4Q'03 1Q'04 2Q04 3Q04 4Q'04 1Q'05 2Q'05 3Q'05 4Q'05 1Q'06 2Q'06 3Q'06 4Q'06 1Q'07 2002 2003 2004 2005 2006 2007

  36. Slide 36: Attractive Valuation

    Rurban Financial Corp. (RBNF) Attractive Valuation 1Q’06 2Q’06 3Q’06 4Q’06 1Q’07 Quarterly Earnings Per $0.10 $0.14 $0.16 $0.14 $0.14 Share (EPS) Last Twelve Months (LTM) $557 $1,385 $1,707 $2,761 $3,052 Earnings ($000) LTM EPS $0.11 $0.28 $0.34 $0.55 $0.61 • Price* to Book = 105% • Price* to Tangib

  37. Slide 37: Investment Considerations

    Rurban Financial Corp. (RBNF) Investment Considerations ¾Credit problems resolved ¾Consistent pattern of earnings growth ¾Fee income stream critical in current rate environment ¾Excess capital supports variety of growth strategies ¾Strong controls in place; recently acquired assets are performing we

  38. Slide 38: Questions And Answers

    Rurban Financial Corp. (RBNF) Questions And Answers

  39. Slide 39: Annual Meeting April 19, 2007

    Annual Meeting April 19, 2007

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