Sb Financial Group, Inc. · NASDAQ:SBFG

Sb Financial — Rurban Financial — Shareholder Meeting (April 2008)

35 slides from Sb Financial's shareholder meeting presentation, Apr 17, 2008

  1. Slide 1: 25th Annual Meeting

    25th Annual Meeting April 17, 2008 Growth and Profitability: Our Passion

  2. Slide 2: Welcome and Call To Order

    Welcome and Call To Order Mark Klein President and CEO The State Bank and Trust Company

  3. Slide 3: SB&T - Advisory Board Members

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

  4. Slide 4: Director Overview and Insight

    Rurban Financial Corp. Director Overview and Insight Steve VanDemark ¾Chairman, Rurban Financial Corp. ¾Chairman, The State Bank and Trust Company ¾Director, RDSI

  5. Slide 5: Holding Company Directors

    Rurban Financial Corp. Holding Company Directors Tom Buis Ken Joyce Tom Callan Rita Kissner * John Compo * Tom Sauer John Fahl * Steve VanDemark Bob Fawcett * Mike Walz Dick Hardgrove * Indicates up for re-election

  6. Slide 6: Director Committees

    Rurban Financial Corp. Director Committees ¾ Audit Committee • Chairman: Rita Kissner • Financial Expert: Dick Hardgrove ¾ Compensation Committee • Chairman: John Fahl ¾ Governance and Nominating Committee • Chairman: Tom Buis ¾ Director Loan Review Committee • Chairman: Tom Callan

  7. Slide 7: Directors of Subsidiaries

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

  8. Slide 8: Annual Meeting Agenda

    Rurban Financial Corp. Annual Meeting Agenda ¾Rurban Overview ¾Banking and Financial Market Overview ¾Progress and Strategy • Ken Joyce, President and CEO • Duane Sinn, Chief Financial Officer ¾Questions and Answers ¾Election & Proposals ¾Adjourn

  9. Slide 9: Profile

    Rurban Financial Corp. Profile ¾Headquartered in Defiance, Ohio ¾ Two primary business lines (% of 2007 Revenue) • Community Banking (53%) • Data and Item Processing for banks (47%) ¾$572 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. RBNF The State Bank and RDSI Trust Company & & Reliance Financial DCM (DBA) Services (DBA)

  11. Slide 11: Improving Profitability

    Rurban Financial Corp. Improving Profitability $1,200 $1,000 $800 $600 $400 $200 $0 5 06 07 6 7 06 06 08 07 07 0 0 0 20 20 20 20 20 20 20 20 20 20 Q Q tr tQ tQ tQ Q Q Q Q Q h h d d d d 1s 1s 1s 4t 4t 2n 3r 2n 3r vg A Banking Group Net Income RDSI Net Income Total Net Income

  12. Slide 12: Peer Comparison

    Rurban Financial Corp. Peer Comparison ¾ Comparison to Average Performance Measures of all Publicly Traded Banks* in Ohio: Performance 1st Q 08 Avg. of LTM Measurement Rurban OH Banks* ƒ ROA .78% .70% ƒ ROE 7.50% 7.05% ƒ NPA to Total Assets 1.22% 0.94% ƒ Net Interest Margin 3.45% 3.75% ƒ Efficiency

  13. Slide 13: RBNF: Stock Price History

    Rurban Financial Corp. RBNF: Stock Price History Rurban Stock (RBNF) vs. Nasdaq Bank Index Source: Yahoo Finance

  14. Slide 14: Banking Environment

    Banking Environment ¾ Sub Prime Mortgage Crisis ƒ Foreclosures ƒ Decline in Housing Values ¾ Liquidity Crisis ƒ Bear Stearns Debacle ¾ Escalating Commodity Prices ƒ Oil ƒ Food ¾ Economic Challenge ƒ Recession ƒ Inflation

  15. Slide 15: The State Bank and Trust Company

    The State Bank and Trust Company ¾ Company Profile ƒ Operate Seventeen Branches in: • Six Ohio Counties • One Indiana County ƒ Columbus Loan Production Office (LPO) ƒ $551 Million in Assets • $395 Million in Loans • $94 Million in Investments • $423 Million in Deposits ƒ Employs 158 People ƒ 104 Yea

  16. Slide 16: Banking Footprint

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

  17. Slide 17: Think Globally, Act Locally

    The State Bank and Trust Company Think Globally, Act Locally ¾ Value Proposition “Your financial services partner delivering proactive and innovative solutions locally through employees with a passion for service.” ¾ Banking Strategy ƒ Prudent Loan Growth ƒ Monitor and Maintain Asset Quality ƒ Manag

  18. Slide 18: Banking Strategy: Prudent Loan Growth

    Banking Strategy: Prudent Loan Growth ¾Loan Growth Strategies ƒ Market Expansion • Previous Acquisitions • Columbus LPO ƒ Building a sales culture • 4,900 sales calls in 2007 • Over 289 closed referrals • Targeted incentive program ƒ Results: 5.2% organic loan growth in 2007

  19. Slide 19: Banking Strategy: Monitor and Maintain Asset Quality

    Banking Strategy: Monitor and Maintain Asset Quality ¾Non-Performing Assets as a % of Total Assets 2.00% 1.67% 1.64% 1.09% 1.14% 1.22% 1.07% 1.07% 1.10% 1.00% 0.75% 0.70% 0.00% 05 07 06 06 06 07 07 07 06 08 20 4Q 4Q 1Q 1Q 3Q 2Q 2Q 1Q 3Q YE

  20. Slide 20: Banking Strategy: Core Deposit Growth

    Banking Strategy: Core Deposit Growth ¾Deposit Growth Initiatives ƒ Private Client Group Success ƒ Remote Merchant Deposit Capture ƒ Cross-Selling Improving ƒ Electronic Transactions ƒ High Performance Checking ƒ CDARS

  21. Slide 21: Banking Strategies: Retail Deposit Growth

    Banking Strategies: Retail Deposit Growth ¾High Performance Checking: Net Retail Checking Accounts 826 900 641 700 500 378 300 100 (100) -26 -127 -46 (300) -127 -175 -299 (500) Avg 1Q 06 2Q 06 3Q 06 4Q 06 1Q 07 2Q 07 3Q 07 4Q 07 2005 Q

  22. Slide 22: Banking Strategy: Control Expenses

    Banking Strategy: Control Expenses ¾Expense Control – Action and Results ƒ Merger of three charters completed in first quarter of 2007 • Exchange Bank • Trust Company Merger ƒ Expense Reductions • $1.8 million Expense Reductions in 2007 • Staff reductions of 25 FTE in 2007

  23. Slide 23: RDSI

    RDSI

  24. Slide 24: RDSI: Data and Item Processing

    RDSI: Data and Item Processing ¾Company Profile (Including DCM) ƒ Regional processor: 10 states ƒ Data processing: 76 banks ƒ Item Processing: 92 banks ƒ Employs 99 People

  25. Slide 25: RDSI: Think Globally, Act Nationally

    RDSI: Think Globally, Act Nationally ¾ Value Proposition “A technology leader, secure provider and trusted advisor providing the best overall value and outstanding service to the financial community” ¾ RDSI Strategy ¾ Grow the Business ¾ Operate Efficiently ¾ Manage the Risk

  26. Slide 26: RDSI: Data and Item Processing Footprint

    RDSI: Data and Item Processing Footprint

  27. Slide 27: RDSI: Growth Strategies

    RDSI: Growth Strategies ¾Revenue and Net Income Growth Strategies ƒ Geographic expansion ƒ Sales initiatives – new and existing client sales ƒ Acquisitions ƒ Product expansion 9In 2000: 23 products 9In 2007: 130 products ƒ “Check 21” efficiencies

  28. Slide 28: RDSI: Revenue Growth

    RDSI: Revenue Growth ¾Historic RDSI Revenue Growth $22 $20.6 5 Year CAGR: 15.8% $20 $16.3 ($ in millions) $18 $16 $13.0 $14 $11.6 $12 $10.3 $10 $8 2003 2004 2005 2006 2007

  29. Slide 29: RDSI: Net Income Growth

    RDSI: Net Income Growth ¾Historic Net Income Growth ($ in millions) $2.60 5 Year CAGR = 10.0% $2.50 $2.10 $2.20 $1.92 $1.72 0.16 $1.80 $1.50 $1.76 $1.40 $1.00 2003 2004 2005 2006 2007 Net Income Tax credits

  30. Slide 30: 2007 – 2006 Financial Highlights

    Rurban Financial Corp. 2007 – 2006 Financial Highlights ($000) 12/31/07 12/31/06 % Change Assets (millions) $556.5 $554.0 Net Interest Income 14,788 15,035 (2%) Provision for Loan Losses 521 178 192% Non-Interest Income 26,861 23,755 13% Non-Interest Expense 36,637 34,904 5% Net Income 3,257 2,760 1

  31. Slide 31: 2008 1st Quarter Results

    Rurban Financial Corp. 2008 1st Quarter Results ($000) 1Q08 1Q07 % Change Assets (millions) $571.7 $548.9 4% Net Interest Income 3,817 3,593 6% Provision for Loan Losses 192 93 106% Non-Interest Income 7,515 6,739 12% Non-Interest Expense 9,601 9,300 3% Net Income 1,109 702 58% Diluted EPS $0.22 $0.

  32. Slide 32: Return to a Normalized Valuation

    Return to a Normalized Valuation LTM EPS P/E LTM $0.80 40 $0.60 30 $0.40 20 $0.20 10 $0.00 0 1Q 06 2Q 06 3Q 06 4Q 06 1Q 07 2Q 07 3Q 07 4Q 07 1Q 08

  33. Slide 33: Investment Considerations

    Rurban Financial Corp. Investment Considerations ¾ Credit problems resolved ¾ Consistent pattern of earnings growth ¾ Strong fee income stream critical in current rate environment ¾ Strong controls in place; recently acquired assets performing well ¾ Excess capital supports variety of growth strateg

  34. Slide 34: Questions?

    Rurban Financial Corp. (RBNF) Questions?

  35. Slide 35: 25th Annual Meeting

    25th Annual Meeting April 17, 2008 Growth and Profitability: Our Passion

Rurban Financial — Shareholder Meeting (April 2008) on 6ix