Rurban and Rurbanc freed from Fed’s consent order
2/16/2013Rurban Financial Corp. and one of its subsidiaries, Rurbanc Data Services Inc. (RDSI), are no longer under a regulatory consent order issued by the Federal Reserve Board of Governors.
The consent order, issued March 9, 2011, required Rurban and RDSI to strengthen the financial condition and operations of the data-services subsidiary.
“The removal of the regulatory order is the final milestone in the successful completion of RDSI’s transition to a smaller, more focused provider of item-processing and network services,” Mark Klein, Rurban’s president and CEO, said in a statement. “Over the past two years, Rurban has redeployed its resources to enhance efficiencies and expand additional sources of revenue.
“As a result, Rurban has just completed the most profitable quarter in its history. ... We believe that the disciplines acquired during this transition process will continue to enhance our performance going forward.”
Rurban’s stock, which was trading at $3.50 a share before the consent order and dropped below $3 after that, climbed to the $7 neighborhood last summer and rose 24 cents (3 percent) Thursday to close at $7.98.
Rurban was planning to spin off RDSI in 2010 but canceled that plan because a unique “single platform” software package that the spun-off firm was to use did not work properly. Clients were forced to turn to other providers for data services.
The consent order did not include Rurban’s banking subsidiary, State Bank and Trust Co.