Sb Financial Group, Inc. · NASDAQ:SBFG
Sb Financial — Rurban Financial — Investor Presentation (November 2007)
17 slides from Sb Financial's investor presentation, Nov 5, 2007
Slide 1: Forward-Looking Statements
Forward-Looking Statements. ‘Rurban would like to remind everyone that comments made during this presentation regarding Rurban's anticioate formance ae fo these statements. These risks and uncertainties inclU Asis ang uncertainties inherent in the national and regional banking, n ‘and mortgage indus
Slide 2: RBNF: Organization Chart
RBNF: Organization Chart Rurban Financial Corp. RBNF ‘The State Bank and Trust Company & Reliance Financial Services (DBA) RFC ™ 2003 to 2006: The Restructuring Phase Sold $305 million bank Y Formed workout subsidiary (RFCBC) to address prob! Y Restructured trust company ] Y Made banking acquisition
Slide 3: Asset and Net Income Growth Strategies
Community Banking: Asset and Net Income Growth Strategies > Asset growth from: a ™ Acquisitions bringing Geographic i ® Organic Growth through Key Initiatives— > Improving profitability from ™ The Best of Both Worlds — Regional and Community Banking ™ Revenue Initiatives ® Sales Culture Development
Slide 4: Asset Growth
Community Banking: Asset Growth > Expanded Banking Footprint Community Banking: Deposit Growth > Market Share Growth Potential Deposits | Market Share | jarket a (thousands) % ‘Share Rank $185,052 23.8% 2 $46,663 $56,793
Slide 5: Deposit Growth Initiatives
Community Banking: Deposit Growth Initiatives 7 Deposit Growth Initiatives _ ™ Chief Deposit Officer- So Focused on Funds Generation === = Private Client Group Success ™ Remote Merchant Deposit Capture Growing Rapidly ™ High Performance Checking Implemented ™ Cross-Selling Improving Community Bankin
Slide 6: Growth Strategies
Community Banking: Growth Strategies > Building Revenue through Sales ™ Best of Both Worlds : ™ Sales and Service Culture ¥ Planned and focused sales calls © 2006 Sales Calls: 3,620 © 2007 YTD Sales Calis: 5,251 Y Referrals Made Closed © 2006 431 134 © 2007 YTD 691 207 Community Banking: Growth Stra
Slide 7: Net Interest Margin
Community Banking: Net Interest Margin > Net Interest Margin Management ™ Restructuring of balance Sheat Y $17.5 milion of securities sold ee year-end 2006 —— ¥ Reinvestment and liability offset improving net income ¥ Continuing process of conversion — investments to loans ® Rigorous use of loan pri
Slide 8: Margin Management
Community Banking: Margin Management > Banking Revenue — Net Interest Income ($ in Millions) $7.0 $6.0 $5.0 $4.0 $3.0 $2.0 $1.0 $0.0 AvgQ 1006 2006 3006 4006 1007 2007 3007 2005 [INet Interest Income| Community Banking: Fee Income Strategies > Banking Revenue — Non-Interest Income ($ in Millions) $7
Slide 9: Expense Control
Community Banking: Expense Control > Banking Group Quarterly Operating Expenses $6,500 $6,000 $5,500 $5,000 (Sin thousands) $4,500 4,000 28? $5,194 $6,131 $5188 $4,845 $4,873 1006 2006 3006 4005 1Q07 2Q07 3007 Community Banking: Net Income (Sin thousands) > Banking Group Quarterly Net Income 2005 10
Slide 10: Asset Quality
Community Banking: Asset Quality > Ongoing Focus on Quality Loan Production ® Control mechanisms in mS Zz and effective : : ™ Generally positive trend for non-performing assets since 2002 ¥ Recent minor move up No negative trend reflected in delinquencies No “subprime” lending or securities: ™ Conti
Slide 11: Asset Quality
Community Banking: Asset Quality > Net Charge-Offs (Annualized) as % of Average Loans Community Banking: Net Income Improvement Strategies > Improving Banking Net Income * Reduction of loan workout & —-sA ™ Fee income generation is improving === v Guarantee loan sale expertise (SBA, USDA, FSA) Y Mor
Slide 12: RDSI: Data and Item Process
RDSI: Data and Item Process I bor Omo,Mienean, DIANA, UNOS -16-
Slide 13: RDSI: Revenue
RDSI: Revenue | Al
Slide 14: RDSI: Net Income
RDSI: Net Income | $5.2 million $6.0 million
Slide 15: Rurban: Improving Profitability
Rurban: Improving Profitability | > Business Unit Profitability ma | 2a | 3°Q vq | 2q 2006 | 2006 | 2006 2007 | 2007 ‘Banking $344 $460 $779 $790 $480 $571 $830 Net = $420 $548 S451 $478 $605 $890 $476 HE q Expense $605 ($485 $516 $454 $378 $559 $521 “otal Net income S168 $523. «$714 $814. $710 $702
Slide 16: RBNF: Normalizing Valuation
RBNF: Normalizing Valuation Q 06 3Q06 4Q0 0 EPS $0.10 | $0.14 | so.16 | $0.14 | $0.14 | so.16 | $0.17 LIMEPS $038 | soso | S055 | sos | sose | soso | $0.61 Price /LTM EPS Stock Price @ ‘Quarter End Dividend Vield Nae aE ese @ Quarier-ena | 151% | 1.82% | 1.08% | 2.29% | 2.03% | 1.87% | 2.21% ‘$32.68
Slide 17: Rurban: Investment Considerations
Rurban: Investment Consider. 5 > Stock price beginning to reflect improving B earnings and earings consistency > Stock price does not appear to properly value RI > EPS valuation becoming a relevant metric > Positive absolute performance and positive performance to Nasdaq Bank Index RURBAN FINANCIAL
Rurban Financial — Investor Presentation (November 2007) on 6ix