DEFIANCE - Rurban Financial Corp., said this week that it significantly boosted its loan loss reserves, continued to suspend its dividend, and reported a first-quarter loss of $848,000.
The quarterly loss equaled 17 cents a share, and compared to a profit of $1.1 million, or 23 cents a share, for the same period a year ago, the company said. Rurban owns State Bank & Trust Co. and a data processing business. RDSI Banking Systems. Charges related to the planned spinoff of RDSI contributed to the loss, it said.
A key banking revenue category, net interest income, fell to $4.9 million from $5 million a year ago. But its loan loss provisions rose to $1.4 million for the quarter from $495,000 a year ago. Net charge-offs, which are poor credit-quality loans not worth keeping on the books, totaled $2.3 million, up from $167,000 a year ago.
Mark Klein, president and CEO, said Rurban is moving aggressively to classify and deal with problem loans. The company kept in place for the second quarter the suspension of its 9 cents a share dividend payout.