Rurban Financial Corp (RBNF, Financial) filed Quarterly Report for the period ended 2012-06-30.
Rurban Financial Corporation has a market cap of $34.2 million; its shares were traded at around $7.05 with a P/E ratio of 9.3 and P/S ratio of 0.8.
Net interest income was $10.1 million, which is flat from the prior year. The Company had a $5.0 million reduction in earning assets, which was offset by a 27 basis point reduction in the rate paid on interest bearing liabilities. The net interest margin was 3.70 percent, which was flat compared to the prior year.
Noninterest income was $6.8 million for the six months ended June 30, 2012 compared to $8.0 million for the prior year period. Mortgage refinancing has provided Rurban with a sizable opportunity for diversification and growth of fee income. State Bank originated $148.2 million of mortgage loans in the first six months of 2012. These originations and subsequent sales resulted in $2.6 million of gains, which compares to gains of $0.99 million for the first six months of 2011. The 160 percent increase in gains from mortgage sales in 2012 reflect the combined impact of a 132 percent increase in mortgages sold and a 20 basis point, or 12.1 percent, increase in the spread to 1.85 percent, compared to the year-earlier period. The prior year was impacted by a $1.9 million gain from the sale of securities.
Total deposits at June 30, 2012 were $518.7 million, flat as compared to December 2011 balances. Borrowed funds, (notes payable, FHLB advances, Fed Funds purchased and REPOs) totaled $35.6 million at June 30, 2012. This is up slightly from the prior year end when borrowed funds totaled $34.3 million. Total equity for the Company now stands at 7.95 percent of total assets, which is up 4.3 percent from the prior year level of 7.62 percent. Retained earnings have grown by $1.99 million from year end due to net income growth.
The Company experienced negative cash flows from investing activities for the six months ended June 30, 2012 and positive cash flows for the six months ended June 30, 2011. Net cash flows used in investing activities was $1.1 million for the six months ended June 30, 2012 and cash provided was $16.1 million for the six months ended June 30, 2011. Highlights for the current period include $17.9 million in purchases of available-for-sale securities, which is down $9.8 million from the prior year. These cash payments were offset by $27.1 million in proceeds from maturities of securities, which is an increase of $16.0 million from the prior year. The prior year cash flow was driven by the investment sales related to the Company’s deleveraging of the balance sheet in June of 2011. During the first quarter of 2011, the Company terminated several life insurance policies on retired executives and realized a cash inflow of $1.4 million. The Company experienced a $10.3 million increase in loans, which is down $3.4 million from the prior year change. Sales of foreclosed assets provided cash of $1.2 million for the prior year second quarter.
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Rurban Financial Corporation has a market cap of $34.2 million; its shares were traded at around $7.05 with a P/E ratio of 9.3 and P/S ratio of 0.8.
Highlight of Business Operations:
Consolidated Revenue: Total revenue, consisting of net interest income and noninterest income, was $16.9 million for the six months ended June 30, 2012, a decrease of $1.07 million, or 6.0 percent, from the $18.0 million generated during the first six months of 2011.Net interest income was $10.1 million, which is flat from the prior year. The Company had a $5.0 million reduction in earning assets, which was offset by a 27 basis point reduction in the rate paid on interest bearing liabilities. The net interest margin was 3.70 percent, which was flat compared to the prior year.
Noninterest income was $6.8 million for the six months ended June 30, 2012 compared to $8.0 million for the prior year period. Mortgage refinancing has provided Rurban with a sizable opportunity for diversification and growth of fee income. State Bank originated $148.2 million of mortgage loans in the first six months of 2012. These originations and subsequent sales resulted in $2.6 million of gains, which compares to gains of $0.99 million for the first six months of 2011. The 160 percent increase in gains from mortgage sales in 2012 reflect the combined impact of a 132 percent increase in mortgages sold and a 20 basis point, or 12.1 percent, increase in the spread to 1.85 percent, compared to the year-earlier period. The prior year was impacted by a $1.9 million gain from the sale of securities.
Total deposits at June 30, 2012 were $518.7 million, flat as compared to December 2011 balances. Borrowed funds, (notes payable, FHLB advances, Fed Funds purchased and REPOs) totaled $35.6 million at June 30, 2012. This is up slightly from the prior year end when borrowed funds totaled $34.3 million. Total equity for the Company now stands at 7.95 percent of total assets, which is up 4.3 percent from the prior year level of 7.62 percent. Retained earnings have grown by $1.99 million from year end due to net income growth.
The Company experienced negative cash flows from investing activities for the six months ended June 30, 2012 and positive cash flows for the six months ended June 30, 2011. Net cash flows used in investing activities was $1.1 million for the six months ended June 30, 2012 and cash provided was $16.1 million for the six months ended June 30, 2011. Highlights for the current period include $17.9 million in purchases of available-for-sale securities, which is down $9.8 million from the prior year. These cash payments were offset by $27.1 million in proceeds from maturities of securities, which is an increase of $16.0 million from the prior year. The prior year cash flow was driven by the investment sales related to the Company’s deleveraging of the balance sheet in June of 2011. During the first quarter of 2011, the Company terminated several life insurance policies on retired executives and realized a cash inflow of $1.4 million. The Company experienced a $10.3 million increase in loans, which is down $3.4 million from the prior year change. Sales of foreclosed assets provided cash of $1.2 million for the prior year second quarter.
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