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<SEC-DOCUMENT>0000950152-06-010405.txt : 20061226
<SEC-HEADER>0000950152-06-010405.hdr.sgml : 20061225
<ACCEPTANCE-DATETIME>20061226160245
ACCESSION NUMBER:		0000950152-06-010405
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20061221
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20061226
DATE AS OF CHANGE:		20061226

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			RURBAN FINANCIAL CORP
		CENTRAL INDEX KEY:			0000767405
		STANDARD INDUSTRIAL CLASSIFICATION:	STATE COMMERCIAL BANKS [6022]
		IRS NUMBER:				341395608
		STATE OF INCORPORATION:			OH
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-13507
		FILM NUMBER:		061299000

	BUSINESS ADDRESS:	
		STREET 1:		401 CLINTON ST
		CITY:			DEFIANCE
		STATE:			OH
		ZIP:			43512
		BUSINESS PHONE:		4197838930

	MAIL ADDRESS:	
		STREET 1:		401 CLINTON STREET
		STREET 2:		PO BOX 467
		CITY:			DEFIANCE
		STATE:			OH
		ZIP:			43512
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>l23860ae8vk.htm
<DESCRIPTION>RURBAN FINANCIAL CORP.    8-K
<TEXT>
<HTML>
<HEAD>
<TITLE>RURBAN FINANCIAL CORP.    8-K</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>






<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 8-K</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>CURRENT REPORT<BR>
Pursuant to Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Date of Report (Date of earliest event reported): <U>December&nbsp;26, 2006 (December&nbsp;21, 2006)</U>
</DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>RURBAN FINANCIAL CORP.</B>
</DIV>


<DIV align="center">
<DIV style="font-size: 3pt; width: 60%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>



<DIV align="center" style="font-size: 10pt">(Exact name of registrant as specified in its charter)
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top">Ohio
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">0-13507
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">34-1395608</TD>
</TR>
<TR style="font-size: 1px">
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(State or other jurisdiction <BR>
of incorporation or organization)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Commission File<BR>
Number)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(IRS Employer<BR>
Identification No.)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">401 Clinton Street, Defiance, Ohio 43512
</DIV>


<DIV align="center">
<DIV style="font-size: 3pt; width: 40%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>




<DIV align="center" style="font-size: 10pt">(Address of principal executive offices) (Zip Code)
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">(419)&nbsp;783-8950
</DIV>


<DIV align="center">
<DIV style="font-size: 3pt; width: 50%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>




<DIV align="center" style="font-size: 10pt">(Registrant&#146;s telephone number, including area code)
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Not Applicable
</DIV>


<DIV align="center">
<DIV style="font-size: 3pt; width: 55%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>




<DIV align="center" style="font-size: 10pt">(Former name or former address, if changed since last report.)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 18pt">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#111;</FONT> Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#111;</FONT> Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
</DIV>


<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>








</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Item&nbsp;8.01. Other Events.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On December&nbsp;21, 2006, Rurban Financial Corp. (the &#147;Company&#148;) issued a news release announcing
that the Company took the following actions during the fourth quarter to restructure the Company&#146;s
balance sheet:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company sold approximately $17.5&nbsp;million of investment securities, which
represented approximately 13% of the Company&#146;s investment portfolio;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company&#146;s Board of Directors approved the consolidation of the Company&#146;s two
banking units, The State Bank and Trust Company and The Exchange Bank, and the
Company&#146;s investment and trust company, Reliance Financial Services, N.A., into a
single banking unit, which will operate as The State Bank and Trust Company. Subject
to obtaining regulatory approval, this consolidation is expected to be completed by the
end of the first quarter of 2007;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company and its subsidiary banks, The State Bank and Trust Company and The
Exchange Bank, entered into an agreement to sell their $3.6&nbsp;million credit card
portfolio to a third party; and</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company completed a sale of $1.4&nbsp;million of non-performing assets.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company also announced that it has recovered $888,000 with respect to WorldCom Bonds which
were previously charged-off by the Company in 2002. The $888,000 recovery will be reported as
income in the fourth quarter of 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A copy of the December&nbsp;21, 2006 news release is included with this Current Report on Form 8-K
as Exhibit&nbsp;99.1 and incorporated herein by reference.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;9.01. Financial Statements and Exhibits.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(a)&nbsp;Not Applicable
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(b)&nbsp;Not Applicable
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(c)&nbsp;Not Applicable
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(d)&nbsp;Exhibits
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="85%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV align="center" style="margin-left:0px; text-indent:-0px"><U>Exhibit&nbsp;No.</U>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><U> Description</U></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV align="center" style="margin-left:0px; text-indent:-0px">99.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">News release issued by Rurban Financial Corp. on December&nbsp;21, 2006</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->-2-<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">SIGNATURE
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="26%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">RURBAN FINANCIAL CORP.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Dated: December&nbsp;26, 2006
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Duane L. Sinn</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" valign="top">Duane L. Sinn<BR>
Executive Vice President and<BR>
Chief Financial Officer</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->-3-<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">INDEX TO EXHIBITS
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Current Report on Form&nbsp;8-K<BR>
Dated December&nbsp;26, 2006
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Rurban Financial Corp.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="85%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV align="center" style="margin-left:0px; text-indent:-0px"><U>Exhibit&nbsp;No.</U>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><U> Description</U></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV align="center" style="margin-left:0px; text-indent:-0px">99.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">News release issued by Rurban Financial Corp. on December&nbsp;21, 2006</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->-4-<!-- /Folio -->
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>l23860aexv99w1.htm
<DESCRIPTION>EX-99.1
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-99.1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;99.1</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Investor
Contact: </I></B>Valda Colbart, 419-784-2759, <U>rfcinv@rurban.net</U>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Rurban Financial Corp. Announces Fourth Quarter Balance Sheet Restructuring Actions<BR>
and Plans to Consolidate its Banking and Trust Subsidiaries</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Defiance, Ohio &#151; December&nbsp;21, 2006 &#151; Rurban Financial Corp. (Nasdaq: RBNF), a leading provider of
full-service community banking, investment management, trust services and bank data and item
processing, today announced that its Board of Directors approved the following actions designed to
improve the profitability of the banking group and that the company received a significant recovery
from a bond loss charged-off in 2002:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The sale of $17.5&nbsp;million, or approximately 13% of Rurban&#146;s investment portfolio and
subsequent deleveraging, resulting in net pre-tax charge of $710,000;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The consolidation of Reliance Financial Services, Rurban&#146;s trust and investment
subsidiary, and The Exchange Bank, its recently acquired community bank, into the lead
bank, The State Bank and Trust Company, subject to regulatory approval;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The sale of Rurban&#146;s $3.6&nbsp;million credit card portfolio, which should generate a
gain of approximately $700,000 in the fourth quarter;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Completion of the sale of $1.4&nbsp;million of non-performing assets; the pre-tax loss
should be approximately $135,000;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Recovery of $888,000 from previously charged off WorldCom Bond losses.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>Investment Portfolio Restructuring</U><BR>
During the fourth quarter of 2006, the Company restructured its balance sheet by selling
approximately $17.5&nbsp;million of investment securities. These securities had an average yield of
3.89% and represent approximately 13% of the investment portfolio. Approximately $12&nbsp;million of the
proceeds will be used to payoff FHLB and other borrowings that have a cost in excess of 5.25%. The
remaining $5.5&nbsp;million will be used to fund the company&#146;s growing commercial loan portfolio. The
one-time restructuring will result in a one-time charge to earnings in the fourth quarter of 2006
of approximately $710,000.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Kenneth A. Joyce, President and Chief Executive Officer of Rurban commented, &#147;These restructuring
actions should create a stronger, more efficient balance sheet that will generate higher returns
for our shareholders going forward. While the immediate result will be to reduce assets by $12
million, we also plan to reinvest a portion of the proceeds and commercial loans to benefit
customers in our markets.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>Consolidation of Banking and Trust Operations</U><BR>
The Board also approved the merging of Rurban&#146;s two banking units, The State Bank and Trust Company
and The Exchange Bank, and its investment and trust company, Reliance Financial Services, into a
single banking unit, which will operate as The State Bank and Trust Company (&#147;The Bank&#148;). Reliance
will retain its name and continue operating with no changes other than the charter change. The
restructuring changes are all subject to obtaining regulatory approval. Subject to obtaining that
approval, these restructuring changes should be completed by the end of the first quarter, 2007.
</DIV>



</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Mr.&nbsp;Joyce added, &#147;Mark Klein has demonstrated the leadership ability to manage the combined
operations and will remain the President and CEO of The State Bank and Trust Company, where he will
drive the sales and lending efforts supported by a talented management team. This merger will
create accounting, staffing and operating efficiencies by combining the three subsidiaries into one
banking unit.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Mark A. Klein, President and Chief Executive Officer of The State Bank and Trust Company added, &#147;I
am excited about the expanding footprint of The Bank. This move will offer customers the ability to
do their banking easily in Northwest Ohio, Fort Wayne, Indiana and the Toledo metropolitan area.&#148;
Mr.&nbsp;Klein continued, &#147;Reliance will not change its name nor will its delivery of great service
change. Reliance Financial Services will continue to be led by Craig Kuhlman, President.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>Credit Card Portfolio Sale</U><BR>
Rurban and its banks have entered into an agreement to sell its credit card portfolio to a third
party. The portfolio is approximately $3.6&nbsp;million which will result in a one-time gain in the
fourth quarter of 2006 of approximately $700,000. The buyer will service the credit card portfolio
and provide our clients with credit cards branded with the State Bank and Trust name. A revenue
sharing arrangement and reinvestment of the sale proceeds should result in little change to future
net income streams. The end result is that this sale is not expected to negatively affect earnings,
but it eliminates a specialty business which is outside of our core expertise, and it provides our
clients with an improved product. New cards will be reissued which will carry a very attractive
points program, and the current credit card holders will retain any earned points and shift them to
the new awards program.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>Non-Performing Loan Sale</U><BR>
During December, Rurban completed a sale of $1.4&nbsp;million of non-performing assets. The loss
associated with the sale will be approximately $135,000. The result of this sale is that
non-performing loans to total assets will be below 1% at year-end based upon current projections.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>Bond Loss Recovery</U><BR>
In 2002 Rurban Financial Corp. charged-off a significant portion of its holdings in WorldCom bonds
and subsequently sold the bonds. Rurban has followed the bankruptcy hearings and has filed all
required claims and notices. As a result, Rurban was awarded its claim and received $888,000 as a
recovery of the amount previously charged-off, which will be reported as income in the fourth
quarter of 2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Joyce continued, &#147;We are pleased to bring all these actions to closure in this fourth quarter. The
impact of these events will be positive for our earnings in 2007, and we look forward to continued
improvement next year.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>About Rurban Financial Corp.</B></U><BR>
Rurban Financial Corp. is a publicly-held financial services holding company based in Defiance,
Ohio. Rurban&#146;s wholly-owned subsidiaries are The State Bank and Trust Company, The Exchange Bank,
Reliance Financial Services, N.A., Rurbanc Data Services, Inc. (RDSI), DCM and RFCBC, Inc. The two
community banks, State Bank and Exchange Bank, offer a full range of financial services through 18
offices in Allen, Defiance, Fulton, Lucas, Paulding and Wood Counties in Ohio
</DIV>




</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">and Allen County in Indiana. Reliance Financial Services offers a diversified array of trust and
financial services to customers throughout the Midwest. RDSI and DCM provide data and item
processing services to community banks in Arkansas, Florida, Illinois, Indiana, Michigan, Missouri,
Ohio and Wisconsin. Rurban&#146;s common stock is quoted on the Nasdaq Global Market under the symbol
RBNF. The Company currently has 10,000,000 shares of stock authorized and 5,027,433 shares
outstanding. The Company&#146;s website is
<U>http://www.rurbanfinancial.net</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Forward-Looking Statements</B></U><BR>
Certain statements within this document, which are not statements of historical fact, constitute
forward-looking statements within the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements involve risks and uncertainties and actual results may differ
materially from those predicted by the forward-looking statements. These risks and uncertainties
include, but are not limited to, risks and uncertainties inherent in the national and regional
banking, insurance and mortgage industries, competitive factors specific to markets in which Rurban
and its subsidiaries operate, future interest rate levels, legislative and regulatory actions,
capital market conditions, general economic conditions, geopolitical events, the loss of key
personnel and other factors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Forward-looking statements speak only as of the date on which they are made, and Rurban undertakes
no obligation to update any forward-looking statement to reflect events or circumstances after the
date on which the statement is made. All subsequent written and oral forward-looking statements
attributable to Rurban or any person acting on our behalf are qualified by these cautionary
statements.
</DIV>




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