Rurban Financial Corp. Announces Second Quarter 2010 Results
DEFIANCE, Ohio, July 29, 2010 (GLOBE NEWSWIRE) -- Rurban Financial Corp. (Nasdaq:RBNF) ("Rurban" or the "Company"), a diversified financial services company providing full-service community banking, wealth management, and data/item processing services, reported a second quarter 2010 loss of $8.1 million, or ($1.67) per diluted share, compared to a net loss of $0.85 million, or ($0.17) per diluted share, for the first quarter of 2010 (the "linked quarter"), and net income of $1.0 million, or $0.20 per diluted share, for the 2009 second quarter. The Company recorded a net loss of $8.9 million, or ($1.84) per diluted share, for the first six months of 2010, compared to net income of $2.1 million, or $0.43 per diluted share, for the first six months of 2009.
Mark A. Klein, President and CEO of Rurban, commented, "Results for the second quarter signal an important shift in strategic direction for one of our units, Rurbanc Data Services, Inc. dba RDSI Banking Systems ("RDSI"). We have determined that the planned spin-off of RDSI and the merger with New Core Holdings, Inc. ("New Core") cannot be successfully completed, and we are working with New Core to address a wind-down of our relationships to enable both companies to pursue their separate strategic directions. As a result of this determination, together with the loss of RDSI's data processing client base and associated revenue, we took a sizeable write-down of hardware, software and developmental costs this quarter. However, this move does not signal the end of our involvement in the bank technology sector. It is more of a time to take stock of our strengths, and also market opportunities. Management of RDSI has changed over completely this past quarter, and the Boards of Directors of Rurban and RDSI have been significantly restructured.
"We are currently reviewing RDSI's four business lines – data processing, item processing, network services and consulting -- talking to our customers and evaluating their needs. We already have strong indications that RDSI has been doing an excellent job in many important areas, and it appears that we have a viable, profitable business without the inclusion of a data processing product at the present time.
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