Rurban adds to bad-loan reserves, reports $1.1M profit

4/16/2009

DEFIANCE Rurban Financial Corp. has reported first quarter profits of $1.1 million, or 23 cents a share, about even with the $1.11 million, or 22 cents a share, reported in the year-earlier period.

"We are pleased we were able to report consistent earnings despite an increase in our provision for loan losses as compared to the year-ago quarter," Chief Executive Kenneth Joyce said in written comments.

Rurban boosted money set aside to cover bad loans by $300,000 to $495,000, mainly to deal with an overdue loan by a large commercial customer.

The firm, which operates as State Bank & Trust Co., said Wednesday that customer deposits rose by $12.8 million, or 5 percent, during the three-month period ended March 31. Officials attribute that, in part, to a decision not to accept funds from the federal government s Troubled Asset Relief Program.