Sb Financial Group, Inc. · NASDAQ:SBFG
Sb Financial — Rurban Financial — Shareholder Meeting (April 2009)
42 slides from Sb Financial's shareholder meeting presentation, Apr 16, 2009
Slide 1: 26th Annual Meeting of Shareholders
26TH ANNUAL MEETING OF SHAREHOLDERS APRIL 16, 2009
Slide 2: Welcome and Call To Order
Welcome and Call To Order Mark Klein President and CEO The State Bank and Trust Company
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 Bill Toedter Ronda Stabler Joe Short Jim Stahl Rex Williamson Lima Region Pat Chaney Joe Guagenti Ron Miller Tim Stolly
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
Slide 5: Holding Company Directors
Rurban Financial Corp. Holding Company Directors Tom Buis * Ken Joyce * Tom Callan Rita Kissner John Compo Tom Sauer * Bob Fawcett Steve VanDemark Dick Hardgrove Dr. Michael Walz * * Indicates director up for re‐election
Slide 6: Director Committees
Rurban Financial Corp. Director Committees ¾ Audit Committee • Chairman: Rita Kissner • Financial Expert: Dick Hardgrove ¾ Compensation Committee • Chairman: Dr. Michael Walz ¾ Governance and Nominating Committee • Chairman: Tom Buis ¾ Director Loan Review Committee • Chairman: Tom Callan
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 Dr. Michael Walz
Slide 8: Annual Meeting Agenda
Rurban Financial Corp. Annual Meeting Agenda ¾Rurban Overview ¾Rurban’s Progress and Strategy ¾Questions ¾Election Results ¾Adjournment
Slide 9: Rurban Financial Corp. Profile
Rurban Financial Corp. Profile ¾ Headquartered in Defiance, Ohio ¾ $658 million in assets at December 31, 2008 ¾ Acquired National Bank of Montpelier on December 1, 2008 ¾ 22 banking centers in eight counties in Ohio and Indiana ¾ Listed on NASDAQ Global Market: RBNF ¾ Two wholly‐owned subsidiaries:
Slide 10: Rurban Financial Corp. Structure
Rurban Financial Corp. Structure Rurban Financial Corp. RBNF The State Bank and RDSI Trust Company & & Reliance Financial DCM (DBA) Services (DBA)
Slide 11: Rurban's Strategy
Rurban’s Strategy ¾ Growth through strong community presence in established markets ¾ Growth through acquisition and in‐market de novo expansion ¾ Profitability enhanced through margin expansion and non‐interest income growth ¾ Profitability improved by cost controls and leveraging infrastructure th
Slide 12: 2008 Versus 2007 Earnings Growth
2008 Versus 2007 Earnings Growth: 60 % Annual Earnings Thousands Earnings EPS Per Share $5,500 $1.20 $5,217 $5,000 $4,500 $1.00 $4,000 $1.06 $3,257 $0.80 $3,500 $2,734 $2,780 $3,000 $0.60 $2,500 $0.65 $2,000 $0.60 $0.55 $0.40 $1,500 $673 $1,000 $0.20 $500 $0.15 $0 $0.00 2004 2005 2006 2007 2008
Slide 13: Relative Profitability Improvement: ROAA
Relative Profitability Improvement: ROAA RBNF Peer Group ROAA 1.25% 0.99% 1.00% 0.94% 0.88% 0.83% 0.82% 0.80% 0.78% 0.72% 0.75% 0.64% 0.67% 0.50% 0.25% 0.00% 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 * Peer group = Median of all publically traded banks in Ohio per KBW report.
Slide 14: Strong Regulatory Capital: 30% over Well Capitalized
Strong Regulatory Capital: 30% over “Well Capitalized” Risk‐based Capital RBNF Peer Group 20.00% 16.00% 15.80% 15.70% 16.20% 16.00% 12.59% 13.20% 11.67% 11.96% 11.33% 12.00% 8.00% 4.00% 0.00% 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 * Peer group = All banks nationwide with assets between $500 million
Slide 15: The State Bank and Trust Company
The State Bank and Trust Company
Slide 16: The State Bank and Trust Company Profile
The State Bank and Trust Company Profile ¾ Founded in 1902 (Survived the “First Depression”) ¾ $637 million in assets at 12/31/2008 ¾ Recent Acquisitions and De Novo Operations: Columbus, Ohio Loan Production Office (12/07) National Bank of Montpelier (12/01/08) ¾ Trust and financial services pr
Slide 17: Foot Print and Recent Acquisition
Foot Print and Recent Acquisition New Williams County Banking Centers
Slide 18: Banking Strategy
Banking Strategy ¾ Grow Loans through market expansion and sales activity ¾ Grow Deposits by targeting unique markets and growing electronic client access ¾ Profitability improvement through net interest margin expansion: Asset Liability Management Core Deposit Growth ¾ Profitability improvement
Slide 19: Loan Growth Strategies
Loan Growth Strategies Commercial RE C&I ¾ Market expansion Res. Mtg. Consumer ($MM) $500 Through acquisitions (Exchange $450 Bank, Lima branches, Montpelier) $389 $400 $370 LPOs in higher growth areas $327 (Columbus and Fort Wayne) $265 $300 ¾ Building a sales culture 4,900 sales calls in 200
Slide 20: Create, Monitor & Maintain Sound Asset Quality
Create, Monitor & Maintain Sound Asset Quality NPAs / Assets NCO / Avg. Loans Loan Loss Reserve / Loans 4.00% 3.71% 3.50% 3.00% 2.50% 1.85% 2.00% 1.81% 1.67% 1.44% 1.50% 1.00% 1.10% 1.03% 1.12% 1.00% 1.00% 0.70% 0.63% 0.33% 0.50% 0.19% 0.07% 0.00% 2004 2005 2006 2007 2008
Slide 21: Deposit Growth Strategies
Deposit Growth Strategies ¾ High Performance Checking 12/31/08 Deposits $484.2 MM ¾ Growth of Private Client Group CDs, $242.5 MM ¾ Improved cross‐selling ¾ Remote merchant deposit capture DDA, $52.2 MM ¾ Growth of Electronic Transactions: 30% Y‐O‐Y ¾ Results: Transaction Accounts NOW, MMDA, $73.1 M
Slide 22: Net Interest Margin Expansion Strategies
Net Interest Margin Expansion Strategies 5.00% 4.06% 3.59% 3.70% 3.83% 3.84% 4.00% 3.59% 3.66% 3.43% 3.45% 3.58% 3.00% 2.00% 1.00% 0.00% 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 Bank Only Peer Group
Slide 23: RDSI Banking Services
RDSI Banking Services Banking Systems
Slide 24: RDSI Data and Item Processing Footprint
RDSI Data and Item Processing Footprint Operating in Eleven States Data Processing for 73 Banks Item Processing for 90 Banks
Slide 25: RDSI Strategy
RDSI Strategy ¾Strategic Themes Expand revenues Improve efficiencies Manage the risk
Slide 26: RDSI Initiatives to Expand Revenues
RDSI Initiatives to Expand Revenues ¾ Geographic expansion: Added new state in 2008 Added Southeast Sales Representative in 2008 ¾ Sales initiatives Added six new client banks in 2008 Six conversions completed or scheduled for 2009 Product sales to existing banks: $1 million in 2008 ¾ Acqu
Slide 27: RDSI Revenue Growth
RDSI Revenue Growth Revenue $25.0 5 Year CAGR: 16.1% $20.6 $21.7 $20.0 $16.3 ($ in millions) $13.0 $15.0 $11.6 $10.3 $10.0 $5.0 $0.0 2003 2004 2005 2006 2007 2008
Slide 28: RDSI Initiatives to Increase Efficiencies
RDSI Initiatives to Increase Efficiencies ¾ “Check 21” Accelerates Electronic Transition 100% of checks are processed using electronic image instead of paper Staffing Down by 5.5 FTE Year‐Over‐Year “Image Exchange Program” kicks off in 2nd Quarter ¾ Technology Improvements More Efficient Pro
Slide 29: RDSI Earnings Growth
RDSI Earnings Growth Net Income $3.00 $2.82 5 Year CAGR = 13.5% $2.47 $2.50 ($ in millions) $2.10 $2.00 $1.92 $0.16 $1.72 $1.50 $1.76 $1.50 $1.00 2003 2004 2005 2006 2007 2008 Tax credits Net Income
Slide 30: RDSI Initiatives to Manage Risk
RDSI Initiatives to Manage Risk ¾ Enterprise Risk Management ¾ Internal Audit Performed by Plante & Moran General Controls Internal Penetration Reviews External Penetration Reviews ¾ External Audit Performed by BKD ¾ SAS 70’s Performed by Clifton Gunderson ¾ Examination Process FDIC OCC
Slide 31: Consolidated Financial Performance
Duane L. Sinn Chief Financial Officer Consolidated Financial Performance Rurban Financial Corp.
Slide 32: 2008 Versus 2007 Financial Highlights
2008 Versus 2007 Financial Highlights ($000) 12/31/2008 12/31/2007 %Δ Assets (millions) $657.6 $561.2 +17% Net Interest Income 17,528 14,787 + 19% Provision for Loan Losses 690 521 + 32% Non-Interest Income 28,061 26,861 + 5% Non-Interest Expense 37,557 36,637 + 3% Net Income 5,217 3,257 + 60% Dilut
Slide 33: First Quarter 2009 Financial Highlights
First Quarter 2009 Financial Highlights ($000) 3/31/2009 3/31/2008 %Δ Assets (millions) $665.8 $571.7 +17% Net Interest Income 5,015 3,817 + 31% Provision for Loan Losses 495 192 158% Non-Interest Income 7,448 7,516 -1% Non-Interest Expense 10,475 9,601 + 9% Net Income 1,103 1,109 -1% Diluted EPS $0
Slide 34: First Quarter 2009 Asset Quality Metrics
First Quarter 2009 Asset Quality Metrics ($000) 03/31/09 03/31/08 Non-Performing Assets Dollar Amount $10,589 $6,967 % of Total Assets 1.59% 1.22% Net Charge-offs Dollar Amount $167 $166 % of Loans (Annualized) 0.15% 0.17% Reserve For Loan Losses Dollar Amount $5,349 $4,016 % of Total Loans 1.23% 1.
Slide 35: First Quarter 2009 Asset Quality
First Quarter 2009 Asset Quality ¾ Approximately $1.8 Million of NPA’s results from National Bank of Montpelier Acquisition Aggressive identification of Problem Loans Initial reserve to cover loss set at $1.2 million in fourth quarter 2008 Prudent coverage of anticipated losses Problem Asset
Slide 36: Dividend Maintained
Dividend Maintained Annualized Dividend Yield 6.0% 5.0% 4.7% 4.6% 4.0% 4.0% 3.4% 3.1% 3.0% 2.2% 2.0% 1.0% 0.0% 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 * Based Upon Stock Prices as of quarter end
Slide 37: RBNF Stock Price: One Year
RBNF Stock Price: One Year Rurban Financial Corp. NASDAQ Bank Index
Slide 38: RBNF Stock Price: Year-To-Date
RBNF Stock Price: Year‐To‐Date Rurban Financial Corp. NASDAQ Bank Index
Slide 39: Improving Valuation Metrics
Improving Valuation Metrics Per Share Quaterly EPS LTM EPS $1.20 $1.06 $1.07 $1.00 $0.97 $0.85 $0.80 $0.73 $0.65 $0.60 $0.40 $0.28 $0.29 $0.27 $0.22 $0.23 $0.18 $0.20 $0.00 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009
Slide 40: Investment Considerations
Rurban Financial Corp. Investment Considerations ¾ Strong fee income stream contributes additional earnings stability ¾ Strong Operational and Financial Controls in place ¾ Excess capital supports variety of growth strategies ¾ Experienced management team executing a well defined vision and implemen
Slide 41: Questions?
PNANCIAN CORP Questions? ANANGAN Cone
Slide 42: 26th Annual Meeting of Shareholders
TH 26 ANNUAL MEETING OF SHAREHOLDERS APRIL 16, 2009