Sb Financial Group, Inc. · NASDAQ:SBFG
Sb Financial — Rurban Financial — Shareholder Meeting (April 2006)
47 slides from Sb Financial's shareholder meeting presentation, Apr 20, 2006
Slide 1: Annual Meeting April 20, 2006
Annual Meeting April 20, 2006
Slide 2: Steve VanDemark, Chairman
STEVE VANDEMARK Chairman, Rurban Financial Corp. Chairman, State Bank and Trust Company Director, RDSI
Slide 3: Forward-Looking Statements
Forward-Looking Statements Rurban would like to remind everyone that comments made during this presentation regarding Rurban's anticipated future performance are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and, therefore, involve risks and un
Slide 4: Steve VanDemark, Chairman
STEVE VANDEMARK Chairman, Rurban Financial Corp. Chairman, State Bank and Trust Company Director, RDSI
Slide 5: Rurban Financial Corp. Directors
Rurban Financial Corp. Directors Tom Buis Dick Hardgrove Tom Callan Ken Joyce John Compo Rita Kissner John Fahl Tom Sauer Bob Fawcett Mike Walz State Bank and Trust Mark Klein, CEO
Slide 6: Directors of Subsidiaries
Rurban Financial Corp. Directors Of Subsidiaries Exchange Bank RDSI Mike Walz, Chairman Ken Joyce, Chairman Joe Hirzel Don DeWitt Ken Joyce Gary Koester Marion Layman John Schock David Marsh Jeff Sewell Hank Thiemann, CEO Steve VanDemark John Weimerskirk
Slide 7: Election of Directors
Rurban Financial Corp. Election of Directors Thomas A. Buis Kenneth A. Joyce Thomas L. Sauer J. Michael Walz
Slide 8: Annual Meeting Agenda
Rurban Financial Corp. Annual Meeting Agenda ¾Company Structure, Strategy, Progress and Future Ken Joyce, President and CEO ¾Financial Review Duane Sinn, Chief Financial Officer ¾Question and Answers ¾Adjourn
Slide 9: Ken Joyce, President and CEO
KEN JOYCE President and CEO Rurban Financial Corp.
Slide 10: Corporate Structure
Rurban Financial Corp. Corporate Structure Rurban Financial Corp. Nasdaq Symbol: RBNF The State Bank The RFCBC, and Exchange RDSI Inc. Trust Company Bank Reliance Financial Services, N.A.
Slide 11: Strategies
Rurban Financial Corp. Strategies ¾Return Community Banking Group to Peer Group Profitability ¾Position for Growth ¾Improve and Promote our “Differentiating” Strategies ¾Continuous Profit Improvement
Slide 12: Strategy: Return Community Banking Group to Peer Group Profitability
Rurban Financial Corp. Strategies ¾Strategy: Return Community Banking Group to Peer Group Profitability Released from Written Agreement February, 2005 Thirty-seven months Structure for Quality Loan Growth
Slide 13: Community Banking Group: Loan Balances Improving
Community Banking Group: Loan Balances Improving State Bank RFCBC Exchange Bank 700 $601 600 500 $488 ($ Millions) 400 $327 $338 300 $284 $264 200 100 0 2001 2002 2003 2004 2005 1Q 2006
Slide 14: Strategy: Improve and Maintain Banking Asset Quality
Rurban Financial Corp. Strategies ¾Strategy: Return Community Banking Group to Peer Group Profitability Released from Written Agreement February, 2005 Thirty-seven months Structure for Quality Loan Growth Improve and Maintain Banking Asset Quality Cautious but creative lending Nominal
Slide 15: Non-Performing Assets (NPA's)
Rurban Financial Corp. Non-Performing Assets (NPA’s) State Bank RFCBC Exchange Bank $24.0 $20.8 $19.9 $20.0 $15.0 $15.4 $16.0 ($ Millions) $11.2 $11.7 $12.0 $6.1 $8.8 $10.0 $8.9 $8.4 $8.0 $1.7 $1.5 $4.9 $8.9 $9.6 $4.4 $3.8 $4.0 $8.2 $5.4 $3.9 $2.8 $3.1 $0.0 2000 2001 2002 2003 2004 2005 1st Qtr. 200
Slide 16: Non-Performing Assets/Total Assets
Rurban Financial Corp. Non-Performing Assets/Total Assets 6.00% 5.00% 4.57% 3.71% 4.00% 2.80% 3.00% 2.00% 2.00% 1.67% 1.27% 1.56% 1.00% 0.00% 2000 2001 2002 2003 2004 2005 1st Qtr. 2006 The Banking Group (Includes Exchange Bank)
Slide 17: NPA's: Actions and Plans
Rurban Financial Corp. NPA’s: Actions and Plans ¾2005 Actions Aggressive workouts Problem loan sale in December ¾2006 Initiatives $2.1 Million commercial building contracted Exchange Bank NPA’s aggressively worked Objective: Below 1% by Year-End 2006
Slide 18: Strategy: Position for Growth - Right People
Rurban Financial Corp. Strategies ¾Strategy: Position for Growth Right People in the Right Places Mark Klein – State Bank and Trust, CEO David Anderson – Lima Region, President Hank Thiemann – Exchange Bank, CEO Jeff Sewell – Rurban Operations Corp., CEO John Weimerskirk – RDSI, President Cra
Slide 19: Strategy: Position for Growth
Rurban Financial Corp. Strategies ¾Strategy: Position for Growth Diversify Geographical Markets Lima Branches Acquisition Exchange Bank Acquisition of Greater Toledo market Fort Wayne LPO
Slide 20: Community Banking Group Northwest Ohio and Northeast Indiana
Community Banking Group Northwest Ohio and Northeast Indiana State Bank & Trust Co: • 13 branches • 1 LPO The Exchange Bank The Exchange Bank: • 5 branches
Slide 21: Differentiating Strategies: Banking
Rurban Financial Corp. ¾Strategy: Improve and Promote our “Differentiating” Strategies Banking – “We Know the Way” Customer service Levels Objective: Every Customer is called by their name Objective: Exceptional Customer Experience Knowledgeable Bankers Add value Get the deal done Ri
Slide 22: Differentiating Strategies: Investment and Trust
Rurban Financial Corp. ¾Strategy: Improve and Promote our “Differentiating” Strategies Investment and Trust – “Growing and Preserving your Wealth” Exceptional Customer Service Level Knowledgeable staff Superior investment performance
Slide 23: Differentiating Strategies: Data Processing
Rurban Financial Corp. ¾Strategy: Improve and Promote our “Differentiating” Strategies Data Processing – “Resources. Relationships. Results.” Exceptional Customer Service Level Operational Excellence
Slide 24: Strategy: Continuous Profit Improvement
Rurban Financial Corp. ¾Strategy: Continuous Profit Improvement Allow banking acquisitions to reach contribution and target profit points Improve banking efficiency
Slide 25: Improve Banking Efficiency
Improve Banking Efficiency State Bank and Trust Company 110% 100% 90% 90% 86% 82% 81% 80% 78% 80% 70% 60% 50% 4Q'04 1Q'05 2Q'05 3Q'05 4Q'05 1Q'06 State Bank
Slide 26: Improve Banking Efficiency Actions and Plans
Improve Banking Efficiency Actions and Plans ¾2006 Initiatives Organic loan growth accelerating Expense controls continue Centralized operations group Savings resulting from decline of NPA’s
Slide 27: Strategy: Profit Improvement
Rurban Financial Corp. Strategies ¾Strategy: Profit Improvement Allow banking acquisitions to reach contribution and target profit points Improve banking efficiency Data Processing
Slide 28: RDSI New Banks: Data Processing
RDSI New Banks: Data Processing Benchmark Bank Gahanna, OH Cooper State Bank Columbus, OH Citizens National Bank Chillicothe, OH Commodore Bank Somerset, OH Commercial Alliance Troy, MI NStar Community Bank Bingham Farms, MI Bank of Birmingham Birmingham, MI Insight Bank Columbus, OH Bay Port State
Slide 29: RDSI New Item/Image Processing Clients
RDSI New Item/Image Processing Clients First Citizens National Bank Upper Sandusky, OH Arlington Bank Arlington, OH Exchange Bank Luckey, OH First Independence Bank Detroit, MI Benchmark Bank Gahanna, OH Cooper State Bank Columbus, OH Commodore Bank Somerset, OH Bank of Birmingham Birmingham, MI Som
Slide 30: RDSI Data Processing
RDSI Data Processing 5 Year Net Income CAGR 27% ($ Millions) Revenue Expenses $15.0 $13.0 $11.0 $9.0 $7.0 $5.0 2000 2001 2002 2003 2004 2005
Slide 31: RDSI Improve Profitability
RDSI Improve Profitability ¾ 2005 Actions Ten new data processing clients Product growth Item processing remote center growth Twelve new item processing clients Five-year revenue CAGR: 15% ¾ 2006 Initiatives Item processing line-of-business achieved profitability in 4th quarter 2005 Co
Slide 32: Strategy: Profit Improvement - Investments and Trust
Rurban Financial Corp. Strategies ¾Strategy: Profit Improvement Allow banking acquisitions to reach contribution and target profit points Improve banking efficiency Data Processing Investments and Trust
Slide 33: Reliance Financial Services Investments and Trust
Reliance Financial Services Investments and Trust: 5 Year Net Income CAGR: 39% ($ Millions) Revenue Expenses $3.5 $3.0 $2.5 $2.0 $1.5 $1.0 2000 2001 2002 2003 2004 2005
Slide 34: Reliance Financial Services Improve Profitability
Reliance Financial Services Improve Profitability ¾2005 Actions Cost containment 2004 product introductions successful Investment Performance continues better than indices ¾2006 Initiatives Expansion into banking footprint Increased sales emphasis
Slide 35: Duane L. Sinn, Chief Financial Officer
DUANE L. SINN Chief Financial Officer
Slide 36: Consolidated Net Income
Rurban Financial Corp. Consolidated Net Income $15.0 $12.3 $10.0 $6.1 $5.0 $2.3 $2.7 ($ Millions) $0.7 $0.52 $0.0 -$5.0 -$10.0 ($13.4) -$15.0 2000 2001 2002 2003 2004 2005 1Q 2006
Slide 37: 2004 - 2005 Financial Highlights
Rurban Financial Corp. 2004 - 2005 Financial Highlights Year End ($000) 12/31/04 12/31/05 Assets (millions) $415.3 $530.5 Net Interest Income 12,077 12,054 Provision For Loan Losses (399) 583 Non-Interest Income 16,691 17,471 Non-Interest Expense 25,324 28,187 Net Income 2,734 673 Diluted EPS $0.60
Slide 38: Segment Reporting: Net Income
Rurban Financial Corp. Segment Reporting: Net Income 2004 2005 $3,000 $2,500 $2,000 ($ Thousands) $1,500 $2,734 $1,000 $1,921 $1,743 $1,717 $500 $575 $637 $673 $133 $0 Banking Group* Data Processing Trust RBNF
Slide 39: RFCBC, Inc. Impact of the Workout Company
RFCBC, Inc. Impact of the Workout Company RFCBC RFCBC Net Income Year-End Assets ($ Millions) ($ Millions) $0.5 $30.0 $0.30 $25.0 $0.0 Other $20.0 $16.2 -$0.5 $15.0 Other ($1.26) $7.4 -$1.0 $10.0 NPA Other NPA $5.0 $11.7 $2.3 $10.0 -$1.5 NPA $4.4 2004 2005 $0.0 2003 2004 2005
Slide 40: State Bank and Trust Company: Revenue Versus Expenses
State Bank and Trust Company: Revenue Versus Expenses Total Revenue Non-Interest Expense ($ Millions) $5.00 $4.50 $4.00 $3.50 $4.38 $4.29 $4.12 $4.09 $3.7 $3.7 $3.6 $3.00 $3.3 $2.50 1Q 05 2Q 05 3Q 05 4Q 05
Slide 41: Quarterly Financial Highlights
Rurban Financial Corp. Quarterly Financial Highlights Quarter Ended ($000) 3/31/06 12/31/05 3/31/05 Assets (millions) $538.2 $530.5 $414.5 Net Interest Income 3,864 3,147 2,997 Provision For Loan Losses 246 613 -0- Non-Interest Income 5,008 4,477 4,612 Non-Interest Expense 7,950 7,632 6,722 Net Inco
Slide 42: Total Revenue
Rurban Financial Corp. Total Revenue Net Interest Income Non-Interest Income ($ Millions) $10.0 $9.0 $8.9 $7.6 $7.5 $7.6 $7.6 $8.0 $7.0 $5.0 $6.0 $4.6 $4.6 $4.6 $4.5 $5.0 $4.0 $3.0 $2.0 $3.9 $3.0 $2.9 $3.0 $3.1 $1.0 $0.0 1Q'05 2Q'05 3Q'05 4Q'05 1Q'06
Slide 43: Stock Price Analysis
Rurban Financial Corp. Stock Price Analysis Stock Price Price/Book $ 20 KBW Peer Group*: 180% 162% of book: $17.40 * 16 $13.68 $13.90 $13.85 160% $12.42 Price/Book Stock Price $11.63 12 $11.78 $9.28 131% 140% 8 123% 126% 116% 116% 120% 4 101% 109% 0 100% 2000 2001 2002 2003 2004 2005 1Q 2006 *KBW Pe
Slide 44: Profitability Targets
Rurban Financial Corp. Profitability Targets Year End Target: Ohio Peer Group Profitability, Return On Assets Bench Mark*: 89 Basis Points, Return on Assets First Quarter 2006: 39 Basis Points, Return On Assets *KBW Performance Review, Median for Ohio Banking Institutions, February, 2006
Slide 45: 2006 Initiatives
Rurban Financial Corp. 2006 Initiatives ¾ The Banking Group Integration of acquisitions Loan growth targets - $30 to $40 Million Efficiency improvement Liquidate the workout company (RFCBC) Reduce consolidated non-performing assets ~ Target: <1.0% target ¾ Non-Banking Entities Expand tru
Slide 46: Questions and Answers?
”n = O - ~ a =) O CG: V) —_ a e & c <x FINANCIAL CORP. RURBAN
Slide 47: Steve VanDemark, Chairman
STEVE VANDEMARK Chairman, Rurban Financial Corp. Chairman, State Bank and Trust Company Director, RDSI