RURBAN FINANCIAL CORP
10-K, 1996-03-26
STATE COMMERCIAL BANKS
Previous: DEFINED ASSET FUNDS MUNICIPAL INVT TR FD NEW YORK SER 97, 485BPOS, 1996-03-26
Next: SUBURBAN BANCSHARES INC, 10-K, 1996-03-26




                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549

                                  FORM 10-K
(Mark One)

[X]  ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES  EXCHANGE
     ACT of 1934 [FEE REQUIRED]
     For the fiscal year ended December 31, 1995

                               OR

[ ]  TRANSITION  REPORT  PURSUANT  TO  SECTION  13 OR 15(d) OF THE  SECURITIES
     EXCHANGE ACT OF 1934 [NO FEE  REQUIRED]
     For the  transition  period from ___________ to ____________

Commission File Number 0-13507

                            RURBAN FINANCIAL CORP.
            (Exact name of Registrant as specified in its charter)


             Ohio                                              34-1395608
- --------------------------------                           -------------------
(State or other jurisdiction of                             (I.R.S. Employer
 incorporation or organization)                            Identification No.)

401 Clinton Street, Defiance, Ohio                                43512
- ----------------------------------                              ----------
(Address of principal executive offices)                        (Zip Code)

Registrant's telephone number, including area code:           (419) 783-8950

         Securities registered pursuant to Section 12(b) of the Act:
                                     None

Securities registered pursuant to Section 12(g) of the Act:
   Common Shares, Without Par Value (2,184,378 outstanding at March 1, 1996)
                               (Title of Class)

Indicate  by check  mark  whether  the  Registrant  (1) has filed all  reports
required to be filed by Section 13 or 15(d) of the Securities  Exchange Act of
1934  during the  preceding  12 months (or for such  shorter  period  that the
Registrant  was  required to file such  reports),  and (2) has been subject to
such filing requirements for the past 90 days. Yes X      No ___

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein,  and will not be contained,  to the
best of Registrant's  knowledge, in definitive proxy or information statements
incorporated  by reference  in Part III of this Form 10-K or any  amendment to
this Form 10-K. [ ]

Based  upon the  average  bid and  asked  prices of the  Common  Shares of the
Registrant on March 1, 1996,  the aggregate  market value of the Common Shares
of the Registrant held by non-affiliates on that date was $68,222,050.

Documents Incorporated by Reference:

      Portions of the  Registrant's  definitive Proxy Statement for its Annual
Meeting  of  Shareholders  to be held on April 22,  1996 are  incorporated  by
reference into Part III of this Annual Report on Form 10-K.

                           Exhibit Index on Page 74
                             Page 1 of 108 Pages.


<PAGE>
                                    PART I

Item 1.  Business.

                                   General

      Rurban Financial Corp., an Ohio  corporation (the  "Corporation"),  is a
bank holding  company under the Bank Holding  Company Act of 1956, as amended,
and is subject to regulation by the Board of Governors of the Federal  Reserve
System  (the  "Federal  Reserve  Board").   The  executive   officers  of  the
Corporation are located at 401 Clinton Street, Defiance, Ohio 43512.

      Through its  subsidiaries,  The State Bank and Trust Company,  Defiance,
Ohio ("State Bank"),  The Peoples  Banking  Company,  Findlay,  Ohio ("Peoples
Bank"),  The First  National Bank of Ottawa  ("First  National  Bank") and The
Citizens  Savings Bank  Company,  Pemberville,  Ohio  ("Citizens  Bank"),  the
Corporation   is  engaged  in  the  business  of   commercial   banking.   The
Corporation's subsidiary, Rurbanc Data Services, Inc. ("Rurbanc"),  is engaged
in the related business of providing data processing services,  principally to
banks. The  Corporation's  subsidiary,  Rurban Life Insurance Company ("Rurban
Life"),  is engaged in the related  business of accepting  life and disability
reinsurance ceded in part by USLIFE Credit Life Insurance  Company  ("USLIFE")
from the credit life and disability  insurance purchased by customers of State
Bank,  Peoples  Bank,  First  National  Bank and Citizens  Bank from USLIFE in
connection  with revolving  credit loans secured by mortgages and with certain
installment  loans made to such customers by State Bank,  Peoples Bank,  First
National Bank and Citizens Bank.

                 General Description of Holding Company Group

State Bank

      State  Bank  is an  Ohio  state-chartered  bank.  State  Bank  presently
operates  seven branch  offices in Defiance  County,  Ohio (six in the city of
Defiance and one in Ney), one branch office in adjacent Paulding County,  Ohio
and three branch offices in Fulton County,  Ohio (one in each of Delta,  Lyons
and Wauseon).  At December 31, 1995,  State Bank had 119 full-time  equivalent
employees.

      State Bank offers a full range of commercial banking services, including
checking  and NOW  accounts;  passbook  savings  and  money  market  accounts;
automatic  teller   machines;   commercial,   installment,   agricultural  and
residential  mortgage  loans  (including  "Home Value  Equity"  line of credit
loans); personal and corporate trust services; commercial leasing; bank credit
card services;  safe deposit rentals; and other personalized banking services.
In addition, State Bank serves as a correspondent (federal funds investing and
check  clearing  purposes)  for  five  financial  institutions  in the  region
(including Peoples Bank and First National Bank).


<PAGE>

Peoples Bank

      Peoples Bank is an Ohio state-chartered bank. The main office of Peoples
Bank is located in Findlay,  Ohio.  Peoples  Bank  provides  checking  and NOW
accounts;  passbook  savings and money market accounts;  time  certificates of
deposit; commercial loans, student loans and real estate mortgage loans; trust
services;  and safe deposit  rental  facilities.  Peoples  Bank also  operates
full-service  branches in Findlay  and McComb,  Ohio.  At December  31,  1995,
Peoples Bank had 24 full-time equivalent employees.

First National Bank

      First  National Bank is a national  banking  association.  The executive
offices of First  National  Bank are located at 405 East Main Street,  Ottawa,
Ohio.  At its present  location on Main Street,  First  National Bank operates
four drive-in teller lanes and an automatic  teller machine with a traditional
banking lobby on the first floor.  First National Bank  presently  operates no
branch  offices.  At December 31, 1995,  First  National Bank had 15 full-time
equivalent employees.

      First National Bank offers a full range of commercial  banking services,
including  checking  and NOW  accounts;  passbook  savings  and  money  market
accounts; automatic teller machines; commercial, installment, agricultural and
residential mortgage loans; personal and corporate trust services;  commercial
leasing;   bank  credit  card  services;   safe  deposit  rentals;  and  other
personalized banking services.

Citizens Bank

      Citizens  Bank is an Ohio  state-chartered  bank.  The  main  office  of
Citizens Bank is located in Pemberville, Ohio. Citizens Bank provides checking
and  NOW  accounts;   passbook  savings  and  money  market   accounts;   time
certificates of deposit; commercial, installment, agricultural and residential
loans; personal and corporate trust services;  commercial leasing; bank credit
card services;  safe deposit rentals; and other personalized banking services.
Citizens  Bank also operates a  full-service  branch in  Gibsonburg,  Ohio. At
December 31, 1995, Citizens Bank had 28 full-time equivalent employees.

Rurbanc

      Substantially  all of Rurbanc's  business is comprised of providing data
processing  services to 32 financial  institutions  primarily in the northwest
area of Ohio  (including  State Bank,  Peoples Bank,  First  National Bank and
Citizens Bank),  including  information  processing for financial  institution
customer services, deposit account information and data analysis. Rurbanc also
provides payroll services for customers which are not financial  institutions.
At December 31, 1995, Rurbanc had 18 full-time equivalent employees.



<PAGE>


Rurban Life

      Rurban Life  commenced  its  business  of  transacting  insurance  as an
Arizona life and disability reinsurer in January, 1988. Rurban Life may accept
life and disability  reinsurance  ceded to Rurban Life by an insurance company
authorized to write life and  disability  insurance,  provided that the amount
accepted does not exceed certain limitations imposed under Arizona law. Rurban
Life is not currently  authorized to write life and disability  insurance on a
direct basis. Rurban Life accepts reinsurance ceded in part by USLIFE from the
credit life and  disability  insurance  purchased  by customers of State Bank,
Peoples Bank,  First National Bank and Citizens Bank from USLIFE in connection
with revolving credit loans secured by mortgages and with certain  installment
loans made to such customers by State Bank,  Peoples Bank, First National Bank
and Citizens Bank. The operations of Rurban Life do not materially  impact the
consolidated  results of  operations  of the  Corporation.  As of December 31,
1995, Rurban Life has not accepted any other reinsurance. Rurban Life does not
currently intend to accept any other  reinsurance in the immediate  future. At
December 31, 1995, Rurban Life had no employees.

                                 Competition

      State  Bank,  Peoples  Bank,  First  National  Bank  and  Citizens  Bank
experience  significant  competition  in attracting  depositors and borrowers.
Competition in lending  activities  comes  principally  from other  commercial
banks in the lending areas of State Bank,  Peoples Bank,  First  National Bank
and  Citizens  Bank,  and,  to a lesser  extent,  from  savings  associations,
insurance  companies,   governmental  agencies,   credit  unions,   securities
brokerage firms and pension funds.  The primary factors in competing for loans
are interest rates charged and overall banking services.

      Competition  for deposits  comes from other  commercial  banks,  savings
associations,  money market funds and credit unions as well as from  insurance
companies and securities brokerage firms. The primary factors in competing for
deposits  are  interest  rates  paid  on  deposits,   account   liquidity  and
convenience of office location.

      Rurbanc also operates in a highly  competitive  field.  Rurbanc competes
primarily  on the  basis of the  value  and  quality  of its  data  processing
services, and service and convenience to its customers.

      Rurban Life operates in the highly  competitive  industry of credit life
and  disability  insurance.  A large  number  of stock  and  mutual  insurance
companies  also  operating in this  industry have been in existence for longer
periods of time and have substantially  greater financial  resources than does
Rurban  Life.  The  principal  methods of  competition  in the credit life and
disability insurance industry are the availability of coverages, premium rates
and  quality of  service.  The  Corporation  believes  that  Rurban Life has a
competitive  advantage  due to the fact that the  business  of Rurban  Life is
limited to the accepting of life and disability  reinsurance  ceded in part by
USLIFE  from  the  credit  life and  disability  insurance  purchased  by loan
customers of State Bank, Peoples Bank, First National Bank and Citizens Bank.

                          Supervision and Regulation

      The following is a summary of certain statutes and regulations affecting
the Corporation and its subsidiaries. The summary is qualified in its entirety
by reference to such statutes and regulations.

      The Corporation is a bank holding company under the Bank Holding Company
Act of 1956, as amended, which restricts the activities of the Corporation and
the  acquisition  by the  Corporation  of voting shares or assets of any bank,
savings  association or other company.  The Corporation is also subject to the
reporting  requirements  of, and  examination  and  regulation by, the Federal
Reserve  Board.  Subsidiary  banks of a bank  holding  company  are subject to
certain  restrictions  imposed by the Federal Reserve Act on transactions with
affiliates,  including  any loans or  extensions of credit to the bank holding
company  or  any of its  subsidiaries,  investments  in  the  stock  or  other
securities  thereof and the taking of such stock or  securities  as collateral
for loans or extensions of credit to any borrower; the issuance of guarantees,
acceptances or letters of credit on behalf of the bank holding company and its
subsidiaries;  purchases  or sales of  securities  or  other  assets;  and the
payment of money or  furnishing  of services to the bank  holding  company and
other subsidiaries. A bank holding company and its subsidiaries are prohibited
from engaging in certain tying  arrangements  in connection with extensions of
credit and/or the provision of other property or services to a customer by the
bank holding company or its subsidiaries.

      Bank holding  companies are prohibited from acquiring direct or indirect
control of more than 5% of any class of voting stock or  substantially  all of
the assets of any bank  holding  company  without  the prior  approval  of the
Federal  Reserve  Board.  In  addition,  acquisitions  across  state lines are
limited to  acquiring  banks in those  states  specifically  authorizing  such
interstate  acquisitions.  However,  since  September  1995,  federal  law has
permitted  interstate  acquisitions of banks, if the bank acquired retains its
separate charter.

      As a national  bank,  First National Bank is supervised and regulated by
the Comptroller of the Currency.  As Ohio  state-chartered  banks, State Bank,
Peoples  Bank and  Citizens  Bank are  supervised  and  regulated  by the Ohio
Division of Banks and the Federal Deposit Insurance Corporation ("FDIC").  The
deposits of State Bank,  Peoples Bank,  First  National Bank and Citizens Bank
are  insured by the FDIC and those  entities  are  subject  to the  applicable
provisions  of the  Federal  Deposit  Insurance  Act. A  subsidiary  of a bank
holding  company  can be liable to  reimburse  the FDIC if the FDIC  incurs or
anticipates a loss because of a default of another FDIC-insured  subsidiary of
the bank holding  company or in connection  with FDIC  assistance  provided to
such subsidiary in danger of default. In addition,  the holding company of any
insured  financial  institution  that submits a capital plan under the federal
banking agencies' regulations on prompt corrective action guarantees a portion
of the institution's capital shortfall, as discussed below.

      Various  requirements  and  restrictions  under  the laws of the  United
States and the State of Ohio  affect the  operations  of State  Bank,  Peoples
Bank, First National Bank and Citizens Bank including requirements to maintain
reserves  against  deposits,  restrictions  on the  nature and amount of loans
which may be made and the interest that may be charged  thereon,  restrictions
relating to investments

<PAGE>


      and other  activities,  limitations on credit exposure to  correspondent
banks, limitations on activities based on capital and surplus,  limitations on
payment of dividends, and limitations on branching. Pursuant to recent federal
legislation,  First National Bank may branch across state lines,  if permitted
by the  law of the  other  state.  In  addition,  effective  June  1997,  such
interstate branching by First National Bank will be authorized, unless the law
of the other state specifically  prohibits the interstate  branching authority
granted by federal law.

      The Federal Reserve Board has adopted  risk-based capital guidelines for
bank  holding  companies  and for state member  banks,  such as State Bank and
Citizens Bank. The risk-based  capital guidelines include both a definition of
capital and a framework  for  calculating  weighted  risk assets by  assigning
assets and off-balance sheet items to broad risk categories. The minimum ratio
of total capital to weighted risk assets (including certain  off-balance sheet
items,  such as standby  letters  of  credit)  is 8%. At least 4.0  percentage
points is to be comprised of common  stockholders'  equity (including retained
earnings but excluding  treasury  stock),  noncumulative  perpetual  preferred
stock, a limited amount of cumulative  perpetual preferred stock, and minority
interests in equity accounts of consolidated  subsidiaries,  less goodwill and
certain other  intangible  assets ("Tier 1 capital").  The remainder  ("Tier 2
capital")  may consist,  among other  things,  of mandatory  convertible  debt
securities, a limited amount of subordinated debt, other preferred stock and a
limited  amount of allowance  for loan and lease losses.  The Federal  Reserve
Board also imposes a minimum  leverage  ratio (Tier 1 capital to total assets)
of 4% for bank  holding  companies  and state  member  banks that meet certain
specified  conditions,  including no  operational,  financial  or  supervisory
deficiencies,  and including having the highest regulatory rating. The minimum
leverage ratio is 1.0-2.0%  higher for other bank holding  companies and state
member banks based on their  particular  circumstances  and risk  profiles and
those  experiencing  or  anticipating   significant   growth.   National  bank
subsidiaries,  such as First  National  Bank,  are subject to similar  capital
requirements adopted by the Comptroller of the Currency,  and state non-member
bank  subsidiaries,  such as Peoples  Bank,  are  subject  to similar  capital
requirements  adopted  by the  FDIC.  Under  an  outstanding  proposal  of the
Comptroller and the FDIC to establish an interest rate risk  component,  First
National Bank,  State Bank,  Peoples Bank and Citizens Bank may be required to
have  additional   capital  if  their  interest  rate  risk  exposure  exceeds
acceptable levels provided for in the regulation when adopted.

      The  Corporation  and its  subsidiaries  currently  satisfy  all capital
requirements.  Failure to meet applicable  capital  guidelines could subject a
banking institution to a variety of enforcement  remedies available to federal
and  state  regulatory  authorities,  including  the  termination  of  deposit
insurance by the FDIC.

      The federal banking  regulators have established  regulations  governing
prompt  corrective  action to resolve  capital  deficient  banks.  Under these
regulations,  institutions  which become  undercapitalized  become  subject to
mandatory  regulatory  scrutiny  and  limitations,  which  increase as capital
continues to decrease.  Such  institutions  are also  required to file capital
plans with their primary federal  regulator,  and their holding companies must
guarantee  the  capital  shortfall  up to 5% of  the  assets  of  the  capital
deficient institution at the time it becomes undercapitalized.



<PAGE>


      The ability of a bank holding company to obtain funds for the payment of
dividends and for other cash  requirements is largely  dependent on the amount
of  dividends  which  may  be  declared  by its  subsidiary  banks  and  other
subsidiaries.  However,  the Federal  Reserve Board expects the Corporation to
serve as a source of strength to its subsidiary banks, which may require it to
retain  capital for further  investment in the  subsidiaries,  rather than for
dividends for shareholders of the Corporation. State Bank, Peoples Bank, First
National Bank and Citizens Bank may not pay dividends to the  Corporation  if,
after  paying such  dividends,  they would fail to meet the  required  minimum
levels under the risk-based  capital guidelines and the minimum leverage ratio
requirements.  State Bank, Peoples Bank, First National Bank and Citizens Bank
must  have  the  approval  of their  respective  regulatory  authorities  if a
dividend in any year would cause the total  dividends  for that year to exceed
the sum of the current year's net profits and the retained net profits for the
preceding two years, less required transfers to surplus.  Payment of dividends
by the bank  subsidiaries  may be restricted at any time at the  discretion of
the  regulatory  authorities,  if they deem such  dividends to  constitute  an
unsafe and/or unsound banking practice. These provisions could have the effect
of limiting the  Corporation's  ability to pay  dividends  on its  outstanding
common shares.

      Rurban  Life is  chartered  by the State of  Arizona  and is  subject to
regulation,   supervision,  and  examination  by  the  Arizona  Department  of
Insurance.  The powers of regulation and supervision of the Arizona Department
of Insurance relate generally to such matters as minimum  capitalization,  the
grant and revocation of  certificates of authority to transact  business,  the
nature of and  limitations on investments,  the  maintenance of reserves,  the
form and content of required financial statements,  reporting requirements and
other matters pertaining to life and disability insurance companies.

                   Monetary Policy and Economic Conditions

      The commercial banking business is affected not only by general economic
conditions,  but  also by the  policies  of  various  governmental  regulatory
authorities,  including the Federal  Reserve Board.  The Federal Reserve Board
regulates money and credit conditions and interest rates in order to influence
general economic  conditions  primarily through open market operations in U.S.
Government  securities,  changes in the discount rate on bank  borrowings  and
changes in reserve  requirements  against bank  deposits.  These  policies and
regulations  significantly  affect the overall growth and distribution of bank
loans,  investments  and deposits,  and the interest rates charged on loans as
well as the interest rates paid on deposits and accounts.

      The  monetary   policies  of  the  Federal  Reserve  Board  have  had  a
significant  effect on the operating  results of commercial  banks in the past
and are  expected to continue to have  significant  effects in the future.  In
view of the  changing  conditions  in the economy and the money market and the
activities of monetary and fiscal authorities,  no definitive  predictions can
be made as to future changes in interest rates, credit availability or deposit
levels.

         Statistical Financial Information Regarding the Corporation

      The  following  schedules  and tables  analyze  certain  elements of the
consolidated  balance sheets and statements of income of the  Corporation  and
its subsidiaries,  as required under Exchange Act Industry Guide 3 promulgated
by the Securities and Exchange  Commission,  and should be read in conjunction
with the narrative analysis  presented in Item 7. Management's  Discussion and
Analysis of Financial  Condition and Results of Operation and the Consolidated
Financial Statements of the Corporation and its subsidiaries included at pages
46 through 73 of this Annual Report on Form 10-K.

<PAGE>

I.   DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY;
     INTEREST RATES AND INTEREST DIFFERENTIAL

A.    The following are the average balance sheets for the years ending
      December 31:


                                          1995          1994          1993
                                          ----          ----          ----
ASSETS
Interest-earning assets
   Securities available-for-sale(1)
      Taxable                          $64,643,230   $51,347,311   $         -
      Non-taxable                           25,869             -             -
   Securities held-to-maturity
      Taxable                            1,485,961       370,644             -
      Non-taxable                        9,416,228     7,584,860             -
   Investment securities
      Taxable                                    -             -    55,916,157
      Non-taxable                                -             -     8,518,053
   Federal funds sold                   10,145,738     5,162,152     3,047,975
   Loans, net of unearned income
     and deferred loan fees(2)         282,864,867   249,993,210   225,013,808
                                       -----------   -----------   -----------
      Total interest-earning assets    368,581,893   314,458,177   292,495,993
   Allowance for loan losses            (4,606,629)   (4,089,404)   (3,461,056)
                                       -----------   -----------   -----------
                                       363,975,264   310,368,773   289,034,937
Noninterest-earning assets
   Cash and due from banks              17,670,513    11,613,379    13,090,931
   Premises and equipment, net           8,857,350     7,766,744     7,031,156
   Accrued interest receivable   
     and other assets                    8,056,940     5,368,618     5,072,715
                                       -----------   -----------   -----------

                                      $398,560,067  $335,117,514  $314,229,739

LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities
   Deposits
      Savings and interest-bearing
        demand deposits                $83,243,571   $70,551,648   $63,445,763
      Time deposits                    231,640,466   191,533,849   183,162,012
   Federal funds purchased and
     securities sold under agree-
     ments to repurchase                   684,484     2,488,229     1,567,400
                                       -----------   -----------   -----------
      Total interest-bearing
        liabilities                    315,568,521   264,573,726   248,175,175

Noninterest-bearing liabilities
   Demand deposits                      41,427,007    37,778,969    33,874,124
   Accrued interest payable and
     other liabilities                   3,687,999     2,150,694     2,214,232
                                       -----------   -----------   -----------
                                       360,683,527   304,503,389   284,263,531

Shareholders' equity(3)(4)              37,876,540    30,614,125    29,966,208
                                       -----------   -----------   -----------

                                      $398,560,067  $335,117,514  $314,229,739

__________________________

(1)  Securities  available-for-sale  are  carried at fair  value.  The average
     balance  includes   quarterly   average  balances  of  the  market  value
     adjustments  and  daily  average  balances  for  the  amortized  cost  of
     securities.
(2)  Loan balances include principal balances of nonaccrual loans.
(3)  Shown  net of  average  net  unrealized  appreciation  (depreciation)  on
     securities available-for-sale, net of tax.
(4)  Includes common stock subject to repurchase obligation in ESOP.
<PAGE>

I.   DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY;
     INTEREST RATES AND INTEREST DIFFERENTIAL (Continued)

B.    The following tables set forth,  for the years indicated,  the condensed
      average  balances  of  interest-earning   assets  and   interest-bearing
      liabilities,  the  interest  earned  or paid on  such  amounts,  and the
      average interest rates earned or paid thereon.


                                    --------------------1995-------------------
                                       Average                        Average
                                       Balance        Interest         Rate
                                       -------        --------        -------
INTEREST-EARNING ASSETS
   Securities(1)
      Taxable                       $66,675,224      $3,756,764        5.63%
      Non-taxable                     9,442,097         645,724(2)     6.84(2)
   Federal funds sold                10,145,738         707,596        6.97
   Loans, net of unearned income
     and deferred loan fees         282,864,867(3)   26,539,689(4)     9.38
                                    -----------      ----------       --------

      Total interest-earning
        assets                     $369,127,926      31,649,773(2)     8.57%(2)
                                   ============


INTEREST-BEARING LIABILITIES
   Deposits
      Savings and interest-bearing
        demand deposits             $83,243,571       2,088,899        2.51
      Time deposits                 231,640,466      12,109,099        5.23
   Federal funds purchased and
     securities sold under agree-
     ments to repurchase                684,484          40,050        5.85
                                    -----------      ----------

      Total interest-bearing
        liabilities               $ 315,568,521      14,238,048        4.51%
                                  =============      -------------

Net interest income                                 $17,411,725(2)
                                                    ==============

Net interest income as a percent
  of average interest-earning assets                                   4.72%(2)
                                                                       ========
_________________________

(1)  Securities  balances  represent daily average  balances for the amortized
     cost of securities.
(2)  Computed  on  tax  equivalent  basis  for  non-taxable   securities  (34%
     statutory tax rate in 1995).
(3)  Loan balances include principal balances of nonaccrual loans.
(4)  Includes fees on loans of $967,504 in 1995.
<PAGE>

I.   DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY;
     INTEREST RATES AND INTEREST DIFFERENTIAL (Continued)


                                    --------------------1994-----------------
                                       Average                        Average
                                       Balance        Interest         Rate
INTEREST-EARNING ASSETS
   Securities(1)
      Taxable                       $52,307,884      $2,485,695       4.75%
      Non-taxable                     7,584,860         524,977(2)    6.92(2)
   Federal funds sold                 5,162,152         220,244       4.27
   Loans, net of unearned income
     and deferred loan fees         249,993,210(3)   20,421,474(4)    8.17
                                    -----------      ----------

      Total interest-earning
        assets                     $315,048,106      23,652,390(2)    7.51%(2)
                                   ============


INTEREST-BEARING LIABILITIES
   Deposits
      Savings and interest-bearing
        demand deposits             $70,551,648       1,900,683       2.69
      Time deposits                 191,533,849       7,586,023       3.96
   Federal funds purchased and
     securities sold under agree-
     ments to repurchase              2,488,229         125,647       5.05
                                    -----------      ----------

      Total interest-bearing
        liabilities               $ 264,573,726       9,612,353       3.63%
                                  =============      ------------


Net interest income                                 $14,040,037(2)
                                                    ===========
Net interest income as a percent
  of average interest-earning assets                                  4.46%(2)
                                                                      =====


_________________________

(1)  Securities  balances  represent daily average  balances for the amortized
     cost of securities.
(2)  Computed  on  tax  equivalent  basis  for  non-taxable   securities  (34%
     statutory tax rate in 1994).
(3)  Loan balances include principal balances of nonaccrual loans.
(4)  Includes fees on loans of $797,957 in 1994.

<PAGE>

I.   DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY;
     INTEREST RATES AND INTEREST DIFFERENTIAL (Continued)


                                    ---------------------1993----------------
                                       Average                         Average
                                       Balance        Interest          Rate
INTEREST-EARNING ASSETS
   Securities(1)
      Taxable                       $55,916,157      $2,989,616        5.35%
      Non-taxable                     8,518,053         675,121(2)     7.93(2)
   Federal funds sold                 3,047,975          94,625        3.10
   Loans, net of unearned income
     and deferred loan fees         225,013,808(3)   17,948,466(4)     7.98
                                    -----------      ----------

      Total interest-earning
        assets                     $292,495,993      21,707,828(2)     7.42%(2)
                                   ============


INTEREST-BEARING LIABILITIES
   Deposits
      Savings and interest-bearing
        demand deposits             $63,445,763       1,778,120        2.80%
      Time deposits                 183,162,012       7,078,584        3.86
   Federal funds purchased and
     securities sold under agree-
     ments to repurchase              1,567,400          52,406        3.34
                                    -----------      ----------

      Total interest-bearing
        liabilities               $ 248,175,175       8,909,110        3.59%
                                  =============     -----------

Net interest income                                 $12,798,718 (2)
                                                    ===========

Net interest income as a percent
  of average interest-earning assets                                   4.38%(2)
                                                                       =====
_________________________

(1)  Securities  balances  represent daily average  balances for the amortized
     cost of securities.
(2)  Computed  on  tax  equivalent  basis  for  non-taxable   securities  (34%
     statutory tax rate in 1993).
(3)  Loan balances include principal balances of nonaccrual loans.
(4)  Includes fees on loans of $705,978 in 1993.

<PAGE>

I.   DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY;
     INTEREST RATES AND INTEREST DIFFERENTIAL (Continued)

C.   The following tables set forth the effect of volume and rate changes on
     interest income and expense for the periods indicated.  For purposes of
     these tables, changes in interest due to volume and rate were determined
     as follows:
     Volume Variance - change in volume multiplied by the previous year's
     rate.
     Rate Variance - change in rate multiplied by the previous year's volume.
     Rate/Volume Variance - change in volume multiplied by the change in
     rate.  This variance was allocated to volume variance and rate variance
     in proportion to the relationship of the absolute dollar amount of the
     change in each.
     Interest on non-taxable securities has been adjusted to a fully tax
     equivalent basis using a statutory tax rate of 34% in 1995, 1994 and
     1993.


                                              Total
                                             Variance   Variance Attributable To
                                            1995/1994     Volume         Rate
                                            ---------     ------       -------
Interest income
   Securities
      Taxable                             $1,271,069   $  758,382   $  512,687
      Non-taxable                            120,747      127,084       (6,337)
   Federal funds sold                        487,352      294,045      193,307
   Loans, net of unearned income
     and deferred loan fees                6,118,215    2,872,531    3,245,684
                                          ----------   ----------   ----------
                                           7,997,383    4,052,042    3,945,341

Interest expense
   Deposits
      Savings and interest-bearing
        demand deposits                      188,216      324,954     (136,738)
      Time deposits                        4,523,076    1,789,516    2,733,560
   Federal funds purchased and
     securities sold under agreements
     to repurchase                           (85,597)    (102,943)      17,346
                                          ----------   ----------   ----------
                                           4,625,695    2,011,527    2,614,168
                                          ----------   ----------   ----------

Net interest income                       $3,371,688   $2,040,515   $1,331,173
                                          ==========   ==========   ==========

<PAGE>
I.   DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY;
     INTEREST RATES AND INTEREST DIFFERENTIAL (Continued)



                                              Total
                                            Variance    Variance Attributable To
                                           1994/1993      Volume         Rate
                                           ---------      ------        ------
Interest income
   Securities
      Taxable                             $ (503,921)  $ (185,042)  $ (318,879)
      Non-taxable                           (150,144)     (69,617)     (80,527)
   Federal funds sold                        125,619       81,591       44,028
   Loans, net of unearned income
     and deferred loan fees                2,473,008    2,031,958      441,050
                                          ----------   ----------   ----------
                                           1,944,562    1,858,890       85,672

Interest expense
   Deposits
      Savings and interest-bearing
        demand deposits                      122,563      193,417      (70,854)
      Time deposits                          507,439      328,750      178,689
   Federal funds purchased and
     securities sold under agreements
     to repurchase                            73,241       39,196       34,045
                                          ----------   ----------   ----------
                                             703,243      561,363      141,880
                                          ----------   ----------   ----------

Net interest income                       $1,241,319   $1,297,527   $  (56,208)
                                          ==========   ==========   ==========

<PAGE>
II.  INVESTMENT PORTFOLIO


     A. The book value of securities available-for-sale as of December 31 are
        summarized as follows:
                                            1995          1994         1993
                                            ----          ----         ----
     U.S. Treasury and U.S. Government
       agency securities                $74,251,501   $50,533,082   $        -
     Obligations of states and
       political subdivisions             9,543,395             -            -
     Mortgage-backed securities           5,345,748     8,402,970            -
     Marketable equity securities         1,189,222       875,803            -
                                         ----------   -----------   ----------

                                        $90,329,866   $59,811,855   $        -
                                        ===========   ===========   ==========


     The book  value of  securities  held-to-maturity  as of  December  31 are
     summarized as follows:

                                            1995          1994        1993
                                            ----          ----        ----
     U.S. Treasury and U.S. Government
       agency securities                 $        -   $ 1,482,576   $        -
     Obligations of states and
       political subdivisions                     -     8,888,336            -
                                         ----------   -----------   ----------

                                         $        -   $10,370,912   $        -
                                         ==========   ===========   ==========


     The book value of investment  securities as of December 31 are summarized
     as follows:

                                            1995          1994        1993
                                            ----          ----        ----
     U.S. Treasury and U.S. Government
       agency securities                 $        -   $         -  $32,059,109
     Obligations of states and
       political subdivisions                     -             -    6,527,912
     Federal Reserve Bank stock                   -             -      240,000
                                         ----------   -----------   ----------

                                         $        -   $         -  $38,827,021
                                         ==========   ===========  ===========


     The  book  value  of  securities  held  for  sale as of  December  31 are
     summarized as follows:

                                            1995          1994         1993
                                            ----          ----         ----
     U.S. Treasury and U.S. Government
       agency securities                 $        -   $         -  $16,424,157
     Mortgage-backed securities                   -             -    3,340,691
     Marketable equity securities                 -             -      322,292
                                         ----------   -----------   ----------

                                         $        -   $         -   $20,087,140
                                         ==========   ===========   ===========

<PAGE>
II.  INVESTMENT PORTFOLIO (Continued)
- ------------------------------------------------------------------------------

     B. The maturity distribution and weighted average interest rates of
        securities available-for-sale at December 31, 1995 are as follows:

                                   ------------------Maturing-----------------
                                                              After One Year
                                          Within                But Within
                                         One Year               Five Years
                                         --------             --------------
                                     Amount      Rate        Amount       Rate
                                     ------     ------       ------      ------
U.S. Treasury and U.S. Government
  agency securities                $25,523,007   5.43%    $48,682,150     6.37%
Mortgage-backed securities(1)              -       -        5,345,748     6.61
Obligations of state and
  political subdivisions(2)          3,958,600   6.13       3,207,024     7.81
                                    ----------            -----------
                                   $29,481,607   5.52%    $57,234,922     6.47%
                                   ===========  ======    ===========    ======


                                   ------------------Maturing-----------------
                                     After Five Years
                                        But Within               After
                                        Ten Years              Ten Years
                                     ----------------          ---------
                                     Amount      Rate        Amount       Rate
U.S. Treasury and U.S. Government
  agency securities                $   10,067    7.05%       $ 36,277     6.04%
Obligations of state and
  political subdivisions(2)         2,377,771    8.24             -       -
     Marketable Equity Securities           -      -       1,189,222     6.00
                                   ----------            -----------
                                   $2,387,838    8.23%   $ 1,225,499     6.00%
                                   ==========     ====   ===========    ======


     (1)  Maturity based upon estimated weighted-average life.
     (2)  Yields are presented on a tax-equivalent basis (34% statutory rate).

     The  weighted  average  interest  rates  are  based on  coupon  rates for
     securities  purchased  at par  value  and  on  effective  interest  rates
     considering amortization or accretion if the securities were purchased at
     a premium or discount.

     C. Excluding those holdings of the investment portfolio in U.S. Treasury
        securities and other agencies of the U.S. Government, there were no
        securities of any one issuer which exceeded 10% of the shareholders'
        equity of the Corporation at December 31, 1995.

<PAGE>
III.  LOAN PORTFOLIO

<TABLE>
      A.  Types of Loans - Total loans on the balance sheet are comprised of
          the following classifications at December 31 for the years
          indicated:

                      1995            1994            1993            1992          1991
                      ----            ----            ----            ----          ----
<S>              <C>             <C>             <C>             <C>             <C>        
Commercial,
  financial and
  agricultural   $ 63,444,036    $ 62,866,040    $ 51,078,815    $ 43,003,215    $38,417,355

Real estate
  mortgage        152,555,540     152,136,086     122,313,826     114,584,845     99,163,541

Installment
  loans to
  individuals      61,600,664      65,676,876      54,420,469      53,326,547     43,818,794

Lease
  financing              -             -            -                   7,689         60,954
                   ----------     -----------     -----------     -----------    -----------

                 $277,600,240    $280,679,002    $227,813,110    $210,922,296   $181,460,644
                 ============    ============    ============    ============   ============
Real estate
  mortgage
  loans held
  for resale       $2,949,293     $ 4,689,611     $ 4,669,580     $ 1,447,050   $  2,916,590
                   ==========     ===========     ===========    ============   ============

</TABLE>

      B.  Maturities and Sensitivities of Loans to Changes in Interest Rates
          - The following table shows the amounts of commercial, financial
          and agricultural loans outstanding as of December 31, 1995 which,
          based on remaining scheduled repayments of principal, are due in
          the periods indicated.  Also, the amounts have been classified
          according to sensitivity to changes in interest rates for loans due
          after one year.  (Variable-rate loans are those loans with floating
          or adjustable interest rates.)

                                                                Commercial,
                                                               Financial and
                             Maturing                          Agricultural
                         ----------------                      -------------

              Within one year                                   $38,324,128
              After one year but within five years               17,123,093
              After five years                                    7,996,815
                                                                -----------
                                                                $63,444,036


                    Commercial, Financial and Agricultural

                                       Interest Sensitivity
                                       --------------------
                                        Fixed        Variable
                                        Rate           Rate          Total
                                        -----        --------       -------
              Due after one year but
                 within five years    $6,281,947    $10,841,146   $17,123,093
              Due after five years     1,853,492      6,143,323     7,996,815
                                      ----------     ----------    ----------

                                      $8,135,439    $16,984,469   $25,119,908
                                      ==========    ===========   ===========

<PAGE>
III.  LOAN PORTFOLIO (Continued)


      C.   Risk Elements

           1.  Nonaccrual,  Past Due and  Restructured  Loans - The  following
               schedule summarizes nonaccrual, past due and restructured loans
               at December 31.
<TABLE>
                                   1995       1994       1993       1992       1991
                                   ----       ----       ----       ----      ----
                                                  (In thousands)
<S>                              <C>        <C>        <C>       <C>        <C>    
(a)  Loans accounted for on a
       nonaccrual basis          $2,403(1)  $ 3,538    $ 3,621   $ 1,239    $ 1,284

(b)  Accruing loans which
       are contractually
       past due 90 days or
       more as to interest
       or principal payments        711       1,198       200        105        452

(c)  Loans not included in (a)
       or (b) which are
       "Troubled Debt Restruc-
       turings" as defined by
       Statement of Financial
       Accounting Standards
       No. 15                         -          -          -          -          -
                                 ------    -------     ------     ------    -------
 
                                 $3,114    $ 4,736     $3,821     $1,344    $ 1,736
                                 ======    =======     ======     ======    =======
</TABLE>
(1)  Includes loans defined as "impaired" under SFAS No. 114.

Management believes the allowance for loan losses balance at December 31, 1995
is  adequate to absorb any losses on  nonperforming  loans,  as the  allowance
balance is maintained by  management at a level  considered  adequate to cover
losses that are currently  anticipated based on past loss experience,  general
economic conditions,  information about specific borrower situations including
their  financial  position  and  collateral  values,  and  other  factors  and
estimates which are subject to change over time.

                                                                  1995
                                                             (In thousands)

Gross interest income that would have
been recorded in 1995 on nonaccrual loans
outstanding at December 31, 1995 if the
loans had been current, in accordance
with their original terms and had been
outstanding throughout the period or
since origination if held for part
of the period ................................................... $ 332

Interest income actually recorded on
nonaccrual loans and included in net
income for the period ...........................................   (41)
                                                                 -------
Interest income not recognized during
the period ...................................................... $ 291
                                                                 =======

<PAGE>
III.  LOAN PORTFOLIO (Continued)


           1.  Discussion of the Nonaccrual Policy

               The  accrual  of  interest  income  is  discontinued  when  the
               collection  of a loan or  interest,  in whole  or in  part,  is
               doubtful.  When interest  accruals are  discontinued,  interest
               income accrued in the current  period is reversed.  While loans
               which are past due 90 days or more as to interest or  principal
               payments are considered for nonaccrual  status,  management may
               elect to continue  the accrual of interest  when the  estimated
               net realizable value of collateral,  in management's  judgment,
               is  sufficient  to cover  the  principal  balance  and  accrued
               interest.

           2.  Potential Problem Loans

               As of December 31, 1995, there are approximately  $3,815,000 in
               outstanding loans where known information about possible credit
               problems of the  borrowers  causes  management  to have serious
               doubts as to the ability of such  borrowers  to comply with the
               present loan repayment terms and which may result in disclosure
               of such loans  pursuant  to Item III.  C.1.  Consideration  was
               given to loans  classified  for  regulatory  purposes  as loss,
               doubtful,  substandard,  or special  mention that have not been
               disclosed  in Section 1 above.  To the extent  that these loans
               are not  included in the  $3,815,000  potential  problem  loans
               described  above,  management  believes that these loans do not
               represent  or  result  from  trends  or   uncertainties   which
               management  reasonably  expects will  materially  impact future
               operating  results,   liquidity,   or  capital  resources,   or
               management  believes that these loans do not represent material
               credits  about  which  management  is aware of any  information
               which  causes  management  to  have  serious  doubts  as to the
               ability  of such  borrowers  to comply  with the  present  loan
               repayment terms.

           3.  Foreign Outstandings

               None

           4.  Loan Concentrations

               At December 31, 1995, loans outstanding related to agricultural
               operations  or   collateralized  by  agricultural  real  estate
               aggregated  approximately  $39,695,000.  At December  31, 1995,
               there were no  agriculture  loans which were accounted for on a
               nonaccrual  basis;  and there  are  approximately  $190,000  of
               accruing  agriculture  loans which are  contractually  past due
               ninety days or more as to interest or principal payments.

      D.   Other Interest-Bearing Assets

           Other than approximately  $320,000 held as other real estate owned,
           there are no other interest-bearing  assets as of December 31, 1995
           which would be required to be disclosed under Item III. C.1 or 2 if
           such assets were loans.

<PAGE>
IV. SUMMARY OF LOAN LOSS EXPERIENCE


A.   The  following  schedule  presents an analysis of the  allowance for loan
     losses, average loan data and related ratios for the years ended December
     31:

<TABLE>
                                                       1995           1994          1993           1992          1991
                                                       ----           ----          ----           ----          ----
     Loans
<S>                                                <C>           <C>           <C>           <C>            <C>                    
              Loans outstanding at end of
                period(1)                          $280,314,137  $285,106,409  $232,317,346  $212,173,944   $184,247,730           
                                                   ============  ============  ============  ============   ============
              Average loans outstanding during
                period(1)                          $282,864,867  $249,993,210  $225,013,808  $197,052,054   $167,909,156
                                                   ============  ============  ============  ============   ============
           
           Allowance for loan losses
              Balance at beginning of period       $  4,770,000  $  3,390,000  $  3,086,443  $  2,701,835   $  2,150,100
              Allowance of acquired Bank                   -        1,100,000          -              -          210,000

              Loans charged off
                 Commercial, financial and
                   agricultural loans                (1,267,028)     (275,543)     (139,250)     (185,084)       (99,535)
                 Real estate mortgage                  (509,108)      (66,531)     (118,054)      (80,949)       (89,014)
                 Installment loans                     (874,690)     (408,879)     (676,436)     (504,107)      (560,499)
                                                   ------------   -----------   -----------   ------------    -----------
                                                     (2,650,826)     (750,953)     (933,740)     (770,140)      (749,048)

              Recoveries of loans previously
                charged off
                Commercial, financial and
                  agricultural loans                    497,437        85,052        89,832        92,388         86,638
                 Real estate mortgage                    23,432        56,809       114,156        42,195         43,209
                 Installment loans                      178,059       187,602       237,823       251,827        150,664
                                                   ------------   -----------   -----------   ------------   -----------
                                                        698,928       329,463       441,811        386,410       280,511
                                                   ------------   -----------   -----------   ------------   -----------

           Net loans charged off                     (1,951,898)     (421,490)     (491,929)      (383,730)     (468,537)

           Provision charged to operating
             expense                                  1,451,898       701,490       795,486        768,338       810,272
                                                   ------------   -----------   -----------   ------------   -----------

           Balance at end of period                $  4,270,000   $ 4,770,000   $ 3,390,000   $  3,086,443   $ 2,701,835
                                                   ============   ===========   ===========   ============   ===========

           Ratio of net charge-offs to average
             loans outstanding for period                  .69%          .17%          .22%           .19%          .28%
                                                           ===           ===           ===            ===           ===
</TABLE>

          (1) Net of unearned income and deferred loan fees

           The allowance for loan losses balance and the provision  charged to
           expense  are  judgmentally  determined  by  management  based  upon
           periodic  reviews of the loan  portfolio.  In addition,  management
           considered  the  level  of  charge-offs  on  loans  as  well as the
           fluctuations  of charge-offs  and recoveries on loans including the
           factors which caused these changes. Estimating the risk of loss and
           the  amount of loss is  necessarily  subjective.  Accordingly,  the
           allowance  is  maintained  by  management  at  a  level  considered
           adequate to cover losses that are  currently  anticipated  based on
           past loss  experience,  general  economic  conditions,  information
           about  specific  borrower  situations   including  their  financial
           position  and  collateral  values and other  factors and  estimates
           which are  subject  to change  over  time.  The  increase  in loans
           charged  off in 1995 as  compared  to  1994 is due  largely  to the
           charge off of certain credits which were  previously  reported on a
           nonaccrual basis.

<PAGE>
IV.  SUMMARY OF LOAN LOSS EXPERIENCE (Continued)


     B.  The following schedule is a breakdown of the allowance for loan losses
         allocated by type of loan and related ratios.

                                    Allocation of the Allowance for Loan Losses
                                    -------------------------------------------
                                              Percentage             Percentage
                                               of Loans               of Loans
                                                In Each                In Each
                                              Category to            Category To
                                   Allowance     Total     Allowance    Total
                                    Amount       Loans      Amount      Loans
                                   ---------  -----------  ---------  ---------
                                    December 31, 1995       December 31, 1994
         Commercial, financial
           and agricultural       $1,665,000     22.9%    $1,764,900    22.4%
         Real estate mortgage        512,000     54.9        572,400    54.2
         Installment loans         1,452,000     22.2      1,621,800    23.4
         Lease financing                   -      -                -     -
         Unallocated                 641,000     N/A         810,900     N/A
                                  ----------     ---      ----------     ---

                                  $4,270,000    100.0%    $4,770,000   100.0%
                                  ==========    =====     ==========   =====


                                    December 31, 1993       December 31, 1992
         Commercial, financial
           and agricultural       $1,220,400     22.4%    $1,072,000    20.4%
         Real estate mortgage        372,900     53.7        343,000    54.3
         Installment loans         1,084,800     23.9      1,020,443    25.2
         Lease financing                   -      -            1,000      .1
         Unallocated                 711,900     N/A         650,000     N/A
                                  ----------     ---      ----------     ---

                                  $3,390,000    100.0%    $3,086,443   100.0%
                                  ==========    =====     ==========   =====

                                    December 31, 1991
                                   -------------------
         Commercial, financial
           and agricultural       $  835,000     21.2%
         Real estate mortgage        300,000     54.6
         Installment loans           951,835     24.1
         Lease financing              15,000       .1
         Unallocated                 600,000      N/A
                                  ----------      ---

                                  $2,701,835    100.0%
                                  ==========    ======

         While management's periodic analysis of the adequacy of the allowance
         for loan losses may allocate  portions of the  allowance for specific
         problem loan  situations,  the entire  allowance is available for any
         loan charge-offs that occur.


<PAGE>
V.   DEPOSITS


     The average  amount of deposits and average rates paid are  summarized as
follows for the years ended December 31:

<TABLE>
                                                         1 9 9 5                   1 9 9 4                  1 9 9 3
                                                         -------                   -------                  -------
                                                   Average      Average      Average      Average     Average      Average
                                                   Amount        Rate        Amount        Rate       Amount        Rate
                                                  ---------    ---------    ---------    ---------   ---------
<S>                                             <C>              <C>     <C>               <C>    <C>               <C>  
Savings and interest-bearing demand deposits    $ 83,243,571     2.51%   $ 70,551,648      2.69%  $ 63,445,763      2.80%
Time deposits                                    231,640,466     5.23     191,533,849      3.96    183,162,012      3.86
Demand deposits (noninterest-bearing)             41,427,007               37,778,969               33,874,124
                                                ------------             ------------              -----------

                                                $356,311,044             $299,864,466             $280,481,899
                                                ============             ============             ============
</TABLE>

    Maturities  of time  certificates  of deposit  and other time  deposits of
    $100,000 or more  outstanding  at  December  31,  1995 are  summarized  as
    follows:

                                                                       Amount
                                                                      --------
     Three months or less ......................................... $14,772,940
     Over three months and through six months .....................   7,529,668
     Over six months and through twelve months ....................   6,500,836
     Over twelve months ...........................................   4,622,089
                                                                     ----------
                                                                    $33,425,533
                                                                    ===========



<PAGE>
VI.   RETURN ON EQUITY AND ASSETS


      The ratio of net income to  average  shareholders'  equity  and  average
      total assets and certain other ratios are as follows:

                                      1995            1994           1993
                                      ----            ----           ----

     Average total assets         $398,560,067    $335,117,514   $314,229,739
                                  ============    ============   ============

     Average shareholders'
       equity (1) (2)             $ 37,876,540    $ 30,614,125   $ 29,966,208
                                  ============    ============   ============

     Average shareholders'
       equity (1) (3)             $ 29,792,748    $ 24,588,737   $ 25,412,300
                                  ============    ============   ============

     Net income                   $  4,094,813    $  3,910,374   $  3,874,981
                                  ============    ============   ============

     Cash dividends declared      $  1,310,627    $  1,264,128   $  1,221,980
                                  ============    ============   ============

     Return on average total
       assets                            1.03%           1.17%          1.23%
                                         ====            ====           ====

     Return on average share-
       holders' equity (2)              10.81%          12.77%         12.93%
                                        =====           =====          =====

     Return on average share-
       holders' equity (3)              13.74%          15.90%         15.25%
                                        =====           =====          =====

     Dividend payout percentage (4)     32.01%          32.33%         31.54%
                                        =====           =====          =====

     Average shareholders'
       equity (2) to average total
       assets                            9.50%           9.14%          9.54%
                                         ====            ====           ====

     Average shareholders'
       equity (3) to average total
       assets                            7.48%           7.34%          8.09%
                                         ====            ====           ====

     (1) Net of average unrealized  appreciation or depreciation on securities
         available-for-sale.
     (2) Includes common stock subject to repurchase obligation in ESOP.
     (3) Excludes common stock subject to repurchase obligation in ESOP.
     (4) Dividends declared divided by net income.


VII.  SHORT-TERM BORROWINGS

      The Corporation  did not have any category of short-term  borrowings for
      which the average balance outstanding during the reported periods was 30
      percent  or  more of  shareholders'  equity  at the end of the  reported
      periods.

<PAGE>
                      Effect of Environmental Regulation

      Compliance  with  federal,  state and local  provisions  regulating  the
discharge  of materials  into the  environment,  or otherwise  relating to the
protection of the environment,  has not had a material effect upon the capital
expenditures,  earnings or  competitive  position of the  Corporation  and its
subsidiaries.  The  Corporation  believes that the nature of the operations of
its subsidiaries has little, if any,  environmental  impact.  The Corporation,
therefore,  anticipates no material  capital  expenditures  for  environmental
control facilities for its current fiscal year or for the foreseeable  future.
The  Corporation's  subsidiaries may be required to make capital  expenditures
for  environmental  control  facilities  related to properties  which they may
acquire through foreclosure  proceedings in the future; however, the amount of
such capital expenditures, if any, is not currently determinable.

Item 2.      Properties.

      The following is a listing and brief description of the properties owned
or leased by State Bank and used in its business:

                        1. Its  main  office  is a  two-story  brick  building
                  located at 401 Clinton  Street,  Defiance,  Ohio,  which was
                  built in 1971.  Including a basement addition built in 1991,
                  it contains 33,400 square feet of floor space. Approximately
                  1,100 square feet on the second floor and 1,900 on the lower
                  level presently are leased to Rurbanc.

                        2. A branch office located in downtown Defiance,  Ohio
                  containing  3,600  square  feet of floor  space was built in
                  1961.  It contains a three-bay  drive-in,  two inside teller
                  locations and a night deposit unit.

                        3. A full service branch office located on Main Street
                  in Ney, Ohio containing 1,536 square feet of floor space was
                  opened in 1968.

                        4. A full service  branch office located at 1796 North
                  Clinton Street,  Defiance, Ohio containing 2,120 square feet
                  of floor  space was  opened in 1968.  It is a free  standing
                  structure located in front of a shopping center.

                        5. A full service  branch office  located at 1856 East
                  Second Street,  Defiance,  Ohio containing 2,160 square feet
                  of floor  space was  opened in 1972.  It is a free  standing
                  structure located in front of a shopping center.

                        6.    A full  service  branch  office  located at 2010
                  South  Jefferson,  Defiance,  Ohio  containing  2,160 square
                  feet of floor  space was opened in 1979.  It is located in a
                  primarily residential area.

                        7. A full service  branch office  located at 220 North
                  Main Street,  Paulding, Ohio containing 6,200 square feet of
                  floor space was opened in 1980.

                        8. A full service  branch  office  located at 312 Main
                  Street,  Delta,  Ohio containing  3,470 square feet of floor
                  space was acquired from Society Bank & Trust
                  ("Society") in 1992.

                        9. A full  service  branch  office  located  at 133 E.
                  Morenci Street,  Lyons, Ohio containing 2,578 square feet of
                  floor space was acquired from Society in 1992.

                        10.  A  full  service  branch  office  located  at 515
                  Parkview,  Wauseon,  Ohio  containing  3,850  square feet of
                  floor space was acquired from Society in 1992.

                        11. A full service  branch located in the Chief Market
                  Square  supermarket at 705 Deatrick Street,  Defiance,  Ohio
                  and  containing  425 square  feet was opened in 1993.  State
                  Bank  leases  the  space in which  this  branch  is  located
                  pursuant to a 15-year lease.

      The following is a listing and brief description of the properties owned
by Peoples Bank and used in its business:

                        1. The full service  main office  located at 301 South
                  Main Street,  Findlay,  Ohio was opened in 1990. It contains
                  approximately  30,000  square feet of floor space,  of which
                  12,000 is used by an unrelated law firm.

                        2. A full service  branch  office  located at 124 East
                  Main Street,  McComb,  Ohio was opened in 1990.  It contains
                  approximately 3,600 square feet of floor space.

                        3. A full service  branch office located at 1330 North
                  Main Street,  Findlay, Ohio, was opened in 1979. It contains
                  approximately 1,500 square feet of floor space.

      The only real property  owned by First  National Bank is the location of
the Bank at 405 East Main Street, Ottawa, Ohio. First National Bank's facility
is a two-story brick and steel building containing  approximately 7,100 square
feet of space.  The first floor is a traditional  banking lobby and the second
floor contains proof/bookkeeping and office space.

      The following is a listing and brief description of the properties owned
by Citizens Bank and used in its business:

                        1. The full service main office is located at 132 East
                  Front Street,  Pemberville,  Ohio and contains  6,389 square
                  feet.  It was  built  near the turn of the  century  and was
                  completely remodeled and added on to in 1992.

                        2.    A full  service  branch  office  located  at 230
                  West Madison Street, Gibsonburg,  Ohio occupies 2,520 square
                  feet and was built in 1988.

Item 3.      Legal Proceedings.

      There are no pending legal  proceedings to which the  Corporation or any
of its  subsidiaries  is a party or to which any of their property is subject,
except  routine  legal  proceedings  to which  the  Corporation  or any of its
subsidiaries  is a party  incidental  to its  banking  business.  None of such
proceedings are considered by the Corporation to be material.

Item 4.      Submission of Matters to a Vote of Security Holders.

      Not applicable.

Executive Officers of the Registrant.

      The following  table lists the names and ages of the executive  officers
of the  Corporation  as of the date of this  Annual  Report on Form 10-K,  the
positions  presently  held by each such  executive  officer  and the  business
experience of each such executive  officer during the past five years.  Unless
otherwise indicated, each person has held his principal occupation(s) for more
than five years. All executive  officers serve at the pleasure of the Board of
Directors of the Corporation.


                                    Position(s) Held with the
                                    Corporation and its Subsidiaries
      Name              Age         and Principal Occupation(s)
     ------            -----        -----------------------------------

Thomas C. Williams      47          President and Chief Executive Officer of
                                    the Corporation and of State Bank since
                                    June 1995; President of FirstMerit Bank,
                                    FSB, Clearwater, Florida, from 1994 to
                                    June, 1995; Senior Vice President and
                                    Managing Officer of the Northern Region 
                                    of The First National Bank of Ohio,
                                    Cleveland, Ohio, from 1990 to 1994;
                                    Director of the Corporation, State Bank
                                    and Rurbanc.

David E. Manz           46          Executive Vice President, Secretary and
                                    Treasurer since 1992, Chief Financial 
                                    Officer since 1990, and Vice President 
                                    from 1990 to 1992, of the Corporation;
                                    President and Chief Executive Officer 
                                    of Rurbanc since 1988; Executive Vice
                                    President since 1992, Senior Vice Presi-
                                    dent from 1991 to 1992, and Vice President
                                    from 1983 to 1991, of State Bank; Director
                                    of the Corporation and Rurbanc.

<PAGE>


Edward L. Yoder         50          Vice President of the Corporation since
                                    1992; Executive Vice President since 1992,
                                    Senior Vice President from 1991 to 1992,
                                    and Vice President from 1981 to 1991, of
                                    State Bank; President and Chief Executive
                                    Officer of Rurban Life since 1992;
                                    Director of Rurban Life.

Robert W. Constien      43          Vice President of the Corporation since
                                    1994; Executive Vice President since 1994, 
                                    Senior Vice President from 1991 to 1993,
                                    Vice President from 1987 to 1991, and a
                                    Trust Officer since 1987, of State Bank.


                                   PART II

Item 5.  Market for  Registrant's  Common  Equity  and  Related  Stockholder
Matters.

      The common  shares of the  Corporation  are traded on a limited basis in
the  over-the-counter  market. The table below sets forth the high and low bid
quotations  for, and the cash  dividends  declared with respect to, the common
shares of the Corporation,  for the indicated periods. The bid quotations were
obtained  from  one of the  securities  dealers  who  makes  a  market  in the
Corporation's  common  shares (the  Corporation  is aware of three  securities
dealers who make a market in its common  shares).  The bid quotations  reflect
the prices at which  purchases  and sales of the  Corporation's  common shares
could  be made  during  each  period  and  not  inter-dealer  prices.  The bid
quotations reflect retail mark-ups,  but not commissions or retail mark-downs.
The bid quotations  represent actual transactions in the Corporation's  common
shares.  The per share  amounts have been restated for the  two-for-one  stock
split in January 1994.

                                             Per Share          Per Share
                                            Bid Prices          Dividends
        1994                              High       Low        Declared
        ----                              ----       ---        --------

First Quarter                           $ 21.00   $ 18.25        $  .15
Second Quarter                            23.00     20.00           .15
Third Quarter                             24.00     22.00           .15
Fourth Quarter                            25.50     24.00           .15

        1995

First Quarter                           $ 25.50   $ 23.75        $  .15
Second Quarter                            27.75     25.13           .15
Third Quarter                             30.50     27.75           .15
Fourth Quarter                            32.38     29.38           .15


<PAGE>


      There can be no assurance  as to the amount of  dividends  which will be
declared with respect to the common shares of the  Corporation  in the future,
since such dividends are subject to the discretion of the Corporation's  Board
of Directors,  cash needs,  general  business  conditions,  dividends from the
subsidiaries and applicable governmental regulations and policies. See Item 7.
Management's  Discussion  and Analysis of Financial  Condition  and Results of
Operations - Capital  Resources and Note 1 of Notes to Consolidated  Financial
Statements.

      The  approximate  number of holders of outstanding  common shares of the
Corporation,  based upon the number of record holders as of December 31, 1995,
is 1,056.

Item 6.  Selected Financial Data.

<TABLE>
SUMMARY OF SELECTED FINANCIAL DATA

                               (Dollars in thousands except per share data)
Year Ended December 31,          1995        1994        1993        1992        1991
                                 ----        ----        ----        ----        ----
EARNINGS
<S>                           <C>         <C>         <C>         <C>         <C>     
 Total interest income ....   $ 31,430    $ 23,474    $ 21,478    $ 22,716    $ 23,757
 Total interest expense ...     14,238       9,612       8,909      10,754      12,817
 Net interest income ......     17,192      13,862      12,569      11,962      10,940
 Provision for loan losses       1,452         701         795         768         810
 Total noninterest income .      5,753       5,312       5,434       5,124       3,996
 Total noninterest expense      15,272      12,664      11,510      10,813       9,848
 Income tax expense .......      2,127       1,899       1,823       1,766       1,272
 Net income ...............      4,095       3,910       3,875       3,739       3,006

- -----------------------------------------------------------------------------------------

PER SHARE DATA (1)
 Net income ...............   $   1.87    $   1.89    $   1.91    $   1.84    $   1.50
 Cash dividends declared ..       0.60        0.60        0.60        0.59        0.60

 Average shareholders' ....     37,877      30,614      29,966      27,374      23,761
   equity (2)
 Average total assets .....    398,560     335,118     314,230     297,720     259,843

- -----------------------------------------------------------------------------------------

RATIOS
 Return on average total ..       1.03%       1.17%       1.23%       1.26%       1.16%
   assets
 Average shareholders'
   equity(2)
   to average total assets        9.50        9.14        9.54        9.19        9.14
 Return on average
   shareholders'
   equity(2) ..............      10.81       12.77       12.93       13.66       12.65
 Dividend payout ratio
   (dividends
   divided by net income)        32.01       32.33       31.54       32.10       39.93

- -----------------------------------------------------------------------------------------

PERIOD END TOTALS
 Total assets .............   $411,226    $393,547    $317,845    $310,143    $274,851
 Total loans and leases ...    277,600     280,679     227,813     210,922     181,461
 Total deposits ...........    367,797     354,646     283,603     279,696     241,843
 Shareholders' equity(2) ..     40,078      35,675      31,293      28,640      26,107
 Book value per common ....      18.35       16.33       15.42       14.11       12.86
   share (1)(2)

</TABLE>
- --------------------------------------------------------------------------------

(1)  Per share data  restated  for 1994  two-for-one  stock split and 1992 15%
     stock dividend.
(2)  Includes common shares subject to repurchase obligation in ESOP.


Item 7.  Management's  Discussion  and  Analysis of Financial  Condition  and
Results of Operation.

                               Earnings Summary

      Consolidated net income for the Corporation for 1995 was $4,095,000,  up
from $3,910,000 in 1994 and $3,875,000 in 1993. Net income per share was $1.87
in 1995,  a decrease  of 1% from $1.89 in 1994.  The 1994 net income per share
results  represented a 1% decrease from $1.91 in 1993. Cash dividends declared
per share  amounted  to $.60 in 1995,  1994 and 1993.  Per share data has been
adjusted to reflect the two-for-one stock split paid in January of 1994.

                            Results Of Operations

1995 Compared With 1994

      Net interest income for 1995 was $17,192,000,  an increase of $3,331,000
(24%) over 1994.  The increase is primarily due to the additional net interest
income  resulting  from a 13% increase in the average  balance of total loans,
net of  unearned  income and  deferred  loan  fees.  Net  interest  income was
significantly impacted by the acquisition of Citizens Bank in October of 1994.
For the year  ended  December  31,  1994,  approximately  three  months of net
interest   income  was  recorded  for  Citizens  Bank  in  the   Corporation's
consolidated  net  interest  income as compared to a full year of net interest
income for December 31, 1995. Net interest income was also favorably  impacted
by a 121 basis  point  increase  in the  average  yield on loans due to higher
average rates charged on loans  resulting from an upward  movement of interest
rates during 1995.  This  contributed  to a 26 basis point increase in average
tax  equivalent  net interest  margin from 4.46% in 1994 to 4.72% in 1995. The
tax equivalent yield on average balances of interest-earning  assets increased
from 7.51% for 1994 to 8.57% in 1995 due to the upward  movement  of  interest
rates during 1995.

      The average rate on interest-bearing  liabilities for 1995 was 4.51%, an
increase of 88 basis points from 3.63% for 1994.  This  increase was primarily
the result of an  increase in interest  rates paid on time  deposits  when the
interest rates were rising during the early part of 1995.

      At December 31, 1995, net loans amounted to $273,095,000,  a decrease of
1% over net loans of  $275,647,000  at December  31,  1994.  This  decrease is
primarily due to the lower demand for consumer loans in 1995 compared to 1994.
With the recent  decrease  in interest  rates,  management  expects  increased
refinancing  activity may lead to net mortgage loan growth if the  Corporation
is able to refinance  loans  currently held by other  financial  institutions.
Lower rates are expected to boost the growth of small  businesses  by lowering
borrowing  costs.  Management  expects  this to lead to  increased  demand for
commercial, financial and agricultural loans.

      At December 31, 1995, approximately $2.9 million of real estate mortgage
loans were held for sale in the secondary market.  During 1995,  approximately
$10.4  million of real  estate  mortgage  loans were  originated  for sale and
approximately $12.2 million were sold in the secondary market. This represents
a  decrease  of  $325,000  (3%) in  loans  sold in 1995 as  compared  to 1994.
Mortgage loans originated for sale decreased $2.1 million in 1995, as compared
to 1994,  primarily due to increasing interest rates in the early part of 1995
which  slowed the demand for  mortgage  loan  refinancings.  Net gains on loan
sales for 1995  totaled  $84,000,  a decrease of $28,000  (25%) as compared to
1994.  The  Corporation  continues to retain the servicing of these loans as a
fee generating  service.  Primarily,  loans originated for sale are fixed rate
mortgage  loans.  Management  anticipates  an  increase in the volume of loans
originated  for sale in 1996 as  compared  to 1995  based on the  lowering  of
interest rates in the first quarter of 1996.

      Securities totaled $90,330,000 at December 31, 1995 which represented an
increase of $20,147,000 (29%) from total securities of $70,183,000 at December
31, 1994.  The increase in securities  is primarily  due to a growing  deposit
base,  outpacing  loan  demand,  as  customers  take  advantage of the deposit
services  being offered by the  Corporation.  In November  1995, the Financial
Accounting  Standards  Board ("FASB")  issued its Special  Report,  A Guide to
Implementation  of SFAS No. 115 on Accounting for Certain  Investments in Debt
and Equity  Securities  ("Guide").  As permitted by the Guide, on December 31,
1995, the Corporation made a one-time reassessment and transferred  securities
from the held-to-maturity  portfolio to the available-for-sale  portfolio.  At
the date of transfer,  these  securities  had an amortized cost of $10,854,000
and   the   transfer    increased   the   unrealized    gain   on   securities
available-for-sale  by $211,000 and shareholders'  equity by $139,000,  net of
tax of $72,000.  As of December 31, 1995,  all  securities of the  Corporation
consisted of available-for-sale  securities. The available-for-sale securities
represent  those  securities the  Corporation may decide to sell if needed for
liquidity,  asset/liability  management or other reasons. These securities are
reported at fair value with unrealized gains and losses included as a separate
component of shareholders' equity, net of tax. This resulted in a net addition
to shareholders' equity of approximately $449,000 at December 31, 1995.

      Total  deposits  at  December  31, 1995  amounted  to  $367,797,000,  an
increase of $13,151,000  (4%) over total deposits of  $354,646,000 at December
31, 1994. The increase of deposits is believed to have occurred as a result of
increased  deposit  services and flexibility of products  offered.  Management
believes  that  customers  continue to place a value on federal  insurance  on
deposit  accounts  and that,  to the extent the  Corporation  continues to pay
competitive rates on deposits and continues to provide  flexibility of deposit
products, the Corporation will be able to maintain its deposit levels.

      The provision for loan losses which was charged to operations  was based
on the amount of net losses  incurred and  management's  estimation  of future
losses based on an  evaluation  of portfolio  risk and economic  factors.  The
provision for loan losses was $1,452,000 in 1995 compared to $701,000 in 1994.
The  increased  provision and decrease in the allowance in 1995 as compared to
1994 is due largely to the charge off of certain credits which were previously
reported on a nonaccrual  basis. The amount of allowance  acquired through the
acquisition  of  Citizens  Bank in 1994 was $1.1  million.  The  allowance  at
December 31, 1995 was $4,270,000 or 1.54% of total loans, net of deferred loan
fees,  compared to  $4,770,000  or 1.70% of total loans,  net of deferred loan
fees, at December 31, 1994.

      Management  adopted Statement of Financial  Accounting  Standards (SFAS)
No. 114,  Accounting by Creditors for Impairment of a Loan, as amended by SFAS
No.  118,  effective  January  1, 1995,  which  requires  recognition  of loan
impairment.  Loans are  considered  impaired  if full  principal  or  interest
payments are not anticipated in accordance  with the  contractual  loan terms.
Impaired loans are carried at the present value of expected  future cash flows
discounted at the loan's  effective  interest rate or at the fair value of the
collateral  if the loan is  collateral  dependent.  Under this  guidance,  the
carrying  value of impaired  loans is  periodically  adjusted to reflect  cash
payments,  revised estimates of future cash flows and increases in the present
value of  expected  cash flows due to the  passage  of time.  A portion of the
allowance  for loan  losses is  allocated  to  impaired  loans.  The effect of
adopting these standards in 1995 was not material.

      Smaller-balance homogeneous loans are evaluated for impairment in total.
Such loans include  residential  first  mortgage  loans secured by one-to-four
family residences, residential construction loans, and automobile, home equity
and second  mortgage  loans.  Commercial  loans and mortgage  loans secured by
other properties are evaluated  individually for impairment.  When analysis of
borrower operating results and financial  condition  indicates that underlying
cash  flows  of the  borrower's  business  are not  adequate  to meet its debt
service  requirements,  the loan is evaluated  for  impairment.  Often this is
associated  with a  delay  or  shortfall  in  payments  of 30  days  or  more.
Commercial loans are rated on a scale of 1 to 5, with 1 being satisfactory,  2
watch,  3 substandard,  4 doubtful,  and 5 as loss which are then charged off.
Loans graded a 4 or worse are considered for  impairment.  Loans are generally
moved to  nonaccrual  status  when 90 days or more past due.  These  loans are
often considered  impaired.  Impaired loans, or portions thereof,  are charged
off when deemed uncollectible. This typically occurs when the loan is 120 days
or more past due. At December 31, 1995, the  Corporation  classified four loan
relationships as impaired, totaling $1,835,000.  Management allocated $643,000
of the allowance for loan losses to impaired loans at December 31, 1995.

      Management allocated  approximately 39% of the allowance for loan losses
to commercial, financial and agricultural loans; 34% to installment loans; and
12% to real estate  mortgage loans at December 31, 1995,  leaving a balance of
15% unallocated.  Nonperforming  loans decreased to $3,114,000 at December 31,
1995 from $4,736,000 at December 31, 1994. The decrease in nonperforming loans
relates  primarily to the charge off of certain  nonperforming  loans in 1995.
Management believes the allowance for loan losses balance at December 31, 1995
is  adequate  to absorb  losses on these and  other  loans,  as the  allowance
balance is maintained by  management at a level  considered  adequate to cover
losses that are currently  anticipated based on past loss experience,  general
economic conditions,  information about specific borrower situations including
their  financial  position  and  collateral  values,  and  other  factors  and
estimates which are subject to change over time.

      Total noninterest  income increased  $440,000 (8%) to $5,753,000 in 1995
from  $5,313,000  in 1994,  primarily  due to increases  in three  areas.  The
Corporation's   service  charges  on  deposits  increased  $163,000  (16%)  to
$1,185,000 in 1995 compared to $1,022,000  in 1994,  trust  department  income
increased $161,000 (9%) to $1,946,000 in 1995 from $1,785,000 in 1994 and data
processing  fees  increased  $107,000  (6%) to  $2,039,000 in 1995 compared to
$1,932,000 in 1994. A significant factor in the increase in noninterest income
was the addition of Citizens Bank in the fourth quarter of 1994,  resulting in
a full year of  noninterest  income for  Citizens  Bank in 1995 as compared to
approximately three months of noninterest income in 1994.

      Total noninterest  expense increased  $2,608,000 (21%) to $15,272,000 in
1995,  from  $12,664,000  in 1994,  primarily  due to the  following  factors.
Salaries and employee  benefits  increased  $1,173,000  (20%) to $6,909,000 in
1995  compared to  $5,736,000  in 1994.  This increase is due to normal annual
salary  increases  and the  inclusion  of Citizen  Bank's  salary and employee
benefits for the entire year for 1995 compared to  approximately  three months
in 1994.  Equipment rentals,  depreciation and maintenance  expenses increased
$638,000  (51%) to $1,890,000  in 1995  compared to  $1,252,000 in 1994.  This
increase is largely due to depreciation  on the new data processing  equipment
at Rurbanc, which was placed in service in the last quarter of 1994, resulting
in a full year of  depreciation  in 1995.  Other expenses  increased  $716,000
(15%) primarily due to increases in professional  fees of $244,000,  increases
in the amortization of intangible assets of $417,000 and a general increase in
all  operating  expenses,  partially  offset by a decrease  in FDIC  insurance
expense.  Another significant factor in the increase in other expenses was the
addition of Citizens Bank in the fourth  quarter of 1994,  resulting in a full
year of other expenses for Citizens Bank in 1995 as compared to  approximately
three months of other expenses in 1994.

      Income tax expense for the year ended December 31, 1995 was  $2,127,000,
an  increase  of  $228,000  (12%)  from  1994.  This  increase  was  primarily
attributable to an increase in income before income tax expense.

      Several new accounting  standards have been issued by the FASB that will
apply in 1996.  SFAS No. 121,  "Accounting  for the  Impairment  of Long-Lived
Assets  and  Long-Lived  Assets  To Be  Disposed  Of",  requires  a review  of
long-term assets for impairment of recorded value and resulting write-downs if
the value is  impaired.  SFAS No.  122,  "Accounting  for  Mortgage  Servicing
Rights",  requires  recognition of an asset when servicing rights are retained
on in-house  originated loans that are sold. These statements are not expected
to have a material effect on the Corporation's consolidated financial position
or results of operations.

1994 Compared With 1993

      Net interest income for 1994 was $13,862,000,  an increase of $1,292,000
(10%) over 1993. The increase was primarily due to the additional net interest
income  resulting from an 11% increase in the average  balance of total loans,
net of unearned income and deferred loan fees. Approximately one-third of this
increase was  attributable  to the  acquisition of Citizens  Bank,  located in
Pemberville,  Ohio, in October of 1994. Net interest income was also favorably
impacted by a 19 basis point  increase  in the  average  yield on loans.  This
contributed  to an 8 basis  point  increase  in  average  tax  equivalent  net
interest margin from 4.38% in 1993 to 4.46% in 1994. The tax equivalent  yield
on average balances of  interest-earning  assets increased from 7.42% for 1993
to 7.51% in 1994 due to increasing interest rates during most of 1994.

      The average rate on interest-bearing  liabilities for 1994 was 3.63%, an
increase of 4 basis points from 3.59% for 1993.  This  increase was  primarily
the result of an increase in interest rates paid on time deposits.

      At December 31, 1994, net loans amounted to $275,647,000, an increase of
23% over net loans of $224,258,000 at December 31, 1993. The increase in loans
was  primarily  funded by an  increase of 25% in total  deposits  from 1993 to
1994. Of the $51,389,000 increase in net loans,  approximately $35 million was
attributable to the acquisition of Citizens Bank.

      At December 31, 1993, approximately $4.7 million of real estate mortgage
loans were held for sale.  During 1994,  approximately  $12.5  million of real
estate mortgage loans were originated for sale and approximately $12.5 million
were sold in the  secondary  market.  This  represented  a  decrease  of $28.9
million (70%) in loans sold in 1994 as compared to 1993. Net gains realized on
loan sales for 1994 totaled $112,000, a decrease of $318,000 (74%) as compared
to 1993. The Corporation continued to retain the servicing of these loans as a
fee generating  service.  As of December 31, 1994,  loans held for sale in the
secondary market totaled approximately $4.7 million. Mortgage loans originated
for sale decreased  $32.1 million in 1994, as compared to 1993,  primarily due
to  increasing   interest  rates  and  the  resulting   decrease  in  customer
refinancings  throughout most of 1994.  Primarily,  loans  originated for sale
were fixed rate mortgage loans.

      Securities totaled $70,183,000 at December 31, 1994 which represented an
increase of $11,269,000 (19%) from total securities of $58,914,000 at December
31, 1993. The increase in securities was primarily due to securities  acquired
in the  acquisition  of Citizens  Bank.  On January 1, 1994,  the  Corporation
adopted SFAS No. 115,  "Accounting for Certain  Investments in Debt and Equity
Securities". As a result, the Corporation classified $59,812,000 of securities
as  available-for-sale  and $10,371,000 of securities as  held-to-maturity  at
December  31,  1994.  The   available-for-sale   securities   represent  those
securities the Corporation  may decide to sell if needed for liquidity,  asset
liability  management or other reasons.  These securities are reported at fair
value with  unrealized  gains and losses  included as a separate  component of
shareholders'  equity,  net  of  tax.  This  resulted  in a net  reduction  to
shareholders'  equity of $1,170,000 at December 31, 1994. The held-to-maturity
securities  represent those  securities which the Corporation has the positive
intent and ability to hold to maturity, and are reported at amortized cost.

      Total  deposits  at  December  31, 1994  amounted  to  $354,646,000,  an
increase of $71,043,000  (25%) over total deposits of $283,603,000 at December
31,  1993.  The  acquisition  of Citizens  Bank brought in  approximately  $56
million in deposits.  The additional increase of deposits was believed to have
occurred as a result of increased deposit services and flexibility of products
offered.

      The provision for loan losses which was charged to operations  was based
on the growth of the loan  portfolio,  the amount of net losses  incurred  and
management's  estimation  of future losses based on an evaluation of portfolio
risk and economic factors.  The provision for loan losses was $701,000 in 1994
compared to $795,000 in 1993. The amount of allowance for loan losses acquired
through the  acquisition  of Citizens Bank was $1.1 million.  The allowance at
December 31, 1994 was $4,770,000 or 1.70% of total loans, net of deferred loan
fees,  compared to  $3,390,000  or 1.49% of total loans,  net of deferred loan
fees, at December 31, 1993.

      Management allocated  approximately 37% of the allowance for loan losses
to commercial, financial and agricultural loans; 34% to installment loans; and
12% to real estate  mortgage loans at December 31, 1994,  leaving a balance of
17% unallocated.  Nonperforming  loans increased to $4,736,000 at December 31,
1994 from $3,821,000 at December 31, 1993. The increase in nonperforming loans
was  primarily due to one large  commercial  borrower  totaling  approximately
$832,000 at December 31, 1994 being 90 days or more past due.

      Total noninterest  income decreased  $121,000 (2%) to $5,313,000 in 1994
primarily  due to  decreases  in two areas.  Data  processing  fees  decreased
$51,000 (3%) to $1,932,000  in 1994  compared to $1,983,000 in 1993.  Also, as
discussed  above,  the Corporation did not sell as many loans in the secondary
market in 1994  resulting  in a decline in net gains on loan sales of $318,000
(74%)  from  $430,000  in 1993 to  $112,000  in  1994.  These  decreases  were
partially offset by increases in service charges on deposits, trust department
income and other noninterest income.

      Total noninterest  expense increased  $1,154,000 (10%) to $12,664,000 in
1994,  primarily due to the following factors.  Salaries and employee benefits
increased  $461,000  (9%) due in part to the  acquisition  of Citizens Bank as
well as normal annual salary increases.  Equipment  rentals,  depreciation and
maintenance  increased  $190,000  (18%)  of  which  $54,000  was  due  to  the
acquisition  of  Citizens  Bank.  Other  expenses   increased  $534,000  (12%)
primarily due to increases in professional fees of $121,000 (17%), advertising
expense of $72,000  (45%),  state,  local and other taxes of $82,000 (16%) and
other operating expenses of $225,000 (25%). The most significant factor in the
increase in other expenses of $534,000 was the addition of Citizens Bank.

      Income tax expense for the year ended December 31, 1994 was  $1,899,000,
an  increase  of  $76,000  (4%)  from  1994.   This   increase  was  primarily
attributable  to an  increase  in  income  before  income  tax  expense  and a
reduction in the level of tax-exempt income in 1994 as compared to 1993.

                                  Liquidity

      Liquidity relates  primarily to the  Corporation's  ability to fund loan
demand,  meet  deposit  customers'  withdrawal  requirements  and  provide for
operating  expenses.  Assets  used to  satisfy  these  needs  consist of cash,
deposits in other financial  institutions,  federal funds sold, securities and
loans held for sale.  These assets are commonly  referred to as liquid assets.
Liquid assets were  $121,839,000 at December 31, 1995 compared to $100,397,000
at December 31, 1994 and  $82,100,000 at December 31, 1993.  Liquidity  levels
increased  $21,442,000 from 1994 to 1995 primarily due to the increase in cash
and cash equivalents and securities available-for-sale.  Management recognizes
that  securities  may need to be sold in the  future to help fund loan  demand
and,  accordingly,  as of December 31, 1995,  $90,330,000  of securities  were
classified as  available-for-sale.  Management  believes its current liquidity
level is sufficient to meet anticipated future growth.

      The cash flow statements for the periods presented provide an indication
of the Corporation's  sources and uses of cash as well as an indication of the
ability of the  Corporation  to  maintain an adequate  level of  liquidity.  A
discussion of the cash flow statements for 1995, 1994 and 1993 follows.

      For all periods presented, the Corporation experienced a net increase in
cash  from  operating  activities.  Net cash  from  operating  activities  was
$8,033,000,  $6,856,000  and $2,681,000 for the years ended December 31, 1995,
1994  and  1993,  respectively.  The  increase  in  net  cash  from  operating
activities of $1,177,000  for 1995 as compared to 1994 was primarily due to an
increase in interest  received on  interest-earning  assets which  outpaced an
increase  in  interest  paid on  interest-bearing  liabilities.  Net cash from
operating  activities  increased  $4,175,000  in  1994  as  compared  to  1993
primarily due to changes in activity  related to loans originated for sale and
an increase in interest  received on  interest-earning  assets  outpacing  the
increase  in  interest  paid  on  interest-bearing   liabilities  due  to  the
acquisition of Citizens Bank in October of 1994 and rising interest rates.

      Net cash flow from investing activities was $(16,672,000), $(13,086,000)
and  $(9,212,000)  for the  years  ended  December  31,  1995,  1994 and 1993,
respectively.  The changes in net cash from investing  activities  include the
result  of  normal  maturities  and  reinvestments  of  securities  as well as
financing  loan growth and premises and equipment  expenditures.  In 1995, the
Corporation  received  $2,263,000 from sales of securities  available-for-sale
and $25,509,000 from principal repayments, maturities and calls of securities,
and had a cash outflow of $45,462,000 for the purchase of securities. In 1994,
the Corporation received $3,266,000 in net cash as a result of the acquisition
of Citizens Bank.

      Net cash flow from financing activities was $11,840,000, $13,071,000 and
$3,685,000 for the years ended December 31, 1995, 1994 and 1993, respectively.
The net cash increase was primarily  attributable  to growth in total deposits
of   $13,151,000,   $15,335,000   and  $3,907,000  in  1995,  1994  and  1993,
respectively.

      Management  of interest  sensitivity  is  accomplished  by matching  the
maturities of interest-earning  assets and interest-bearing  liabilities.  The
following table  illustrates the asset  (liability)  funding gaps for selected
maturity periods as of December 31, 1995.


                                   INTEREST SENSITIVITY GAP ANALYSIS

                         ------------Repricable or Maturing Within-------------
                              0-6       6-12     Total 1    Over 1       Total
                             Months    Months      yr.        yr.
                             (000)     (000)      (000)      (000)       (000)
                             -----     -----      -----     -----       -----
ASSETS
Interest-earning deposits
  in other financial
  institutions              $    20   $   100     $  120    $   60    $   180
Federal funds sold            7,313         -      7,313         -      7,313
Securities                   15,414    17,695     33,109    57,221     90,330
Loans/loans held for sale   141,051    66,598    207,649    72,665    280,314
                          ---------  --------   --------  ---------  --------

 Total interest-earning    $163,798  $ 84,393   $248,191  $129,946   $378,137
   assets                  ========  ========   ========  ========   ========

<PAGE>
LIABILITIES
Interest-bearing deposits  $232,458  $ 42,155   $274,613  $ 44,463   $319,076
                           ========  ========   ========  ========   ========

Assets (liability) GAP     $(68,660) $ 42,238   $(26,422) $ 85,483   $ 59,061
  GAP ratio (assets/            70%      200%        90%      292%       119%
  liabilities)


                              Capital Resources

      Total shareholders' equity was $40,078,000 (which includes $9,333,000 of
common  shares  subject to  repurchase  obligation in ESOP) as of December 31,
1995, an increase of $4,403,000 over total shareholders' equity of $35,675,000
as of  December  31,  1994.  The  increase in total  shareholders'  equity was
primarily due to 1995 net income of $4,095,000  and  $1,619,000  net change in
unrealized  appreciation  on  securities   available-for-sale,   net  of  tax,
partially  offset  by  dividends  of  $1,311,000.   Under  risk-based  capital
guidelines  issued by the  Federal  Reserve  Board,  the  Corporation  and its
subsidiary banks are required to maintain a minimum  risk-based  capital ratio
of 8% and a  minimum  leverage  ratio of 4% as of  December  31,  1995.  While
risk-based capital guidelines consider  on-balance-sheet and off-balance-sheet
risk,  the  minimum  leverage  ratio  measures  capital in  relation  to total
on-balance-sheet assets.

      The  components  of  risk-based  capital  are tier 1 capital  and tier 2
capital.  The definition of capital,  used in the leverage ratio, is identical
to tier 1 capital under risk-based capital guidelines. Tier 1 capital is total
shareholders'  equity less intangible assets and tier 2 capital includes total
allowance for loan losses in the  calculation  of total capital for risk-based
capital  purposes.  The  allowance  for loan  losses is  includable  in tier 2
capital up to a maximum of 1.25% of risk-weighted  assets.  The net unrealized
appreciation/depreciation on securities available-for-sale,  net of tax, under
SFAS No. 115 is not considered for meeting  regulatory  capital  requirements.
The following table provides the minimum regulatory  capital  requirements and
the Corporation's capital ratios at December 31, 1995:

                            TYPE OF CAPITAL RATIO
                                                       Minimum
                                                      Regulatory
                                                       Capital     Corporation's
                                                     Requirements     Capital
                                                       12/31/95        Ratio
                                                     -----------   -------------

Ratio of tier 1 capital to weighted-risk assets          4.00%         14.51%
Ratio of total capital to weighted-risk assets           8.00%         15.76%
Leverage Ratio                                           4.00%          9.26%
Ratio of total shareholders' equity to total assets       N/A           9.75%

      The Corporation's  subsidiaries meet the applicable  minimum  regulatory
capital requirements at December 31, 1995. The Corporation remains comfortably
above the minimum regulatory capital requirements.  The banking regulators may
alter minimum  capital  requirements  as a result of revising  their  internal
policies and their ratings of the Corporation's subsidiary banks.

      Restrictions  exist  regarding  the ability of the  subsidiary  banks to
transfer  funds to the  Corporation  in the form of cash  dividends,  loans or
advances.   (See  Note  1  to  Consolidated   Financial   Statements.)   These
restrictions have had no major impact on the Corporation's  dividend policy or
operations and it is not anticipated that they will have any major impact in
the future.

      As of  December  31,  1995,  management  is not  aware  of  any  current
recommendations  by banking  regulatory  authorities which, if they were to be
implemented,  would have, or are reasonably likely to have, a material adverse
effect on the Corporation's liquidity, capital resources or operations.


                   Impact Of Inflation And Changing Prices

      The majority of assets and  liabilities of the  Corporation are monetary
in nature and therefore the  Corporation  differs greatly from most commercial
and industrial companies that have significant  investments in fixed assets or
inventories. However, inflation does have an important impact on the growth of
total assets in the banking industry and the resulting need to increase equity
capital at higher than normal rates in order to maintain an appropriate equity
to assets ratio.  Inflation  significantly affects noninterest expense,  which
tends to rise during periods of general inflation.

      Management  believes the most significant impact on financial results is
the  Corporation's  ability to react to changes in interest rates.  Management
seeks to maintain an essentially  balanced position between interest sensitive
assets  and  liabilities  and  actively   manages  the  amount  of  securities
available-for-sale  in order to protect  against the effects of wide  interest
rate fluctuations on net income and shareholders' equity.

Item 8.      Financial Statements and Supplementary Data.

      The Consolidated  Balance Sheets of the Corporation and its subsidiaries
as of December  31,  1995 and  December  31,  1994,  the related  Consolidated
Statements of Income,  Changes in Shareholders' Equity and Cash Flows for each
of the years in the  three-year  period ended  December 31, 1995,  the related
Notes to  Consolidated  Financial  Statements  and the  Report of  Independent
Auditors,  appear on pages 46 through 73 of this  Annual  Report on Form 10-K.
The  Corporation  is not  required  to  furnish  the  supplementary  financial
information specified by Item 302 of Regulation S-K.

Item 9.  Changes in and Disagreements With Accountants on Accounting and
Financial Disclosure.

      None.


<PAGE>


                                   PART III

Item 10.  Directors and Executive Officers of the Registrant.

     In accordance with General  Instruction G(3), the information  called for
in this Item 10 is  incorporated  herein  by  reference  to the  Corporation's
definitive Proxy Statement,  filed with the Securities and Exchange Commission
pursuant to  Regulation  14A of the General  Rules and  Regulations  under the
Securities Exchange Act of 1934, relating to the Corporation's  Annual Meeting
of Shareholders to be held on April 22, 1996, under the captions  "ELECTION OF
DIRECTORS"  and  "SECURITY   OWNERSHIP  OF  CERTAIN   BENEFICIAL   OWNERS  AND
MANAGEMENT."  In  addition,   certain  information  concerning  the  executive
officers  of the  Corporation  called  for in this Item 10 is set forth in the
portion  of Part I of this  Annual  Report  on Form 10-K  entitled  "Executive
Officers of the Registrant" in accordance with General Instruction G(3).

Item 11.  Executive Compensation.

     In accordance with General  Instruction G(3), the information  called for
in this Item 11 is  incorporated  herein  by  reference  to the  Corporation's
definitive Proxy Statement,  filed with the Securities and Exchange Commission
pursuant to  Regulation  14A of the General  Rules and  Regulations  under the
Securities Exchange Act of 1934, relating to the Corporation's  Annual Meeting
of Shareholders to be held on April 22, 1996, under the captions "COMPENSATION
OF EXECUTIVE  OFFICERS AND DIRECTORS" and "COMPENSATION  COMMITTEE  INTERLOCKS
AND INSIDER PARTICIPATION." Neither the "REPORT ON EXECUTIVE COMPENSATION" nor
the  "PERFORMANCE  GRAPH"  included  in  the  Corporation's  definitive  Proxy
Statement  relating to the Corporation's  Annual Meeting of Shareholders to be
held on  April  22,  1996,  shall  be  deemed  to be  incorporated  herein  by
reference.

Item 12.  Security Ownership of Certain Beneficial Owners and Management.

     In accordance with General  Instruction G(3), the information  called for
in this Item 12 is  incorporated  herein  by  reference  to the  Corporation's
definitive Proxy Statement,  filed with the Securities and Exchange Commission
pursuant to  Regulation  14A of the General  Rules and  Regulations  under the
Securities Exchange Act of 1934, relating to the Corporation's  Annual Meeting
of  Shareholders  to be held on April 22,  1996,  under the caption  "SECURITY
OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT."

Item 13.  Certain Relationships and Related Transactions.

     In accordance with General  Instruction G(3), the information  called for
in this Item 13 is  incorporated  herein  by  reference  to the  Corporation's
definitive Proxy Statement,  filed with the Securities and Exchange Commission
pursuant to  Regulation  14A of the General  Rules and  Regulations  under the
Securities Exchange Act of 1934, relating to the Corporation's  Annual Meeting
of Shareholders to be held on April 22, 1996, under the caption  "TRANSACTIONS
INVOLVING MANAGEMENT."


                                   PART IV

Item 14.  Exhibits, Financial Statement Schedules, and Reports on Form 8-K.

(a)  (1) Financial Statements.

         For a list of all financial statements included in this Annual Report
         on Form 10-K, see "Index to Financial Statements" at page 45.

(a)  (2) Financial Statement Schedules.

         All  schedules  for  which   provision  is  made  in  the  applicable
         accounting  regulations of the Securities and Exchange Commission are
         not required under the related  instructions or are inapplicable and,
         therefore, have been omitted.

(a)  (3) Exhibits.

         Exhibits  filed  with this  Annual  Report on Form 10-K are  attached
         hereto. For a list of such exhibits,  see "Index to Exhibits" at page
         74. The  following  table  provides  certain  information  concerning
         executive compensation plans and arrangements required to be filed as
         exhibits to this Annual Report on Form 10-K.


                Executive Compensation Plans and Arrangements



Exhibit No.        Description                       Location

10(a)              Employees' Stock Ownership        Incorporated herein by
                   Plan of Rurban Financial Corp.    reference to the
                                                     Corporation's  Annual
                                                     Report  on Form 10-K for
                                                     the  fiscal year ended
                                                     December  31, 1991 (File
                                                     No. 0-13507) [Exhibit
                                                     10(a)].

10(b)              First Amendment to Employees'     Incorporated herein by
                   Stock Ownership Plan of Rurban    reference to the
                   Financial Corp., dated June       Corporation's Annual
                   14, 1993 and made to be           Report on Form 10-K for
                   effective as of January 1, 1993   the fiscal year ended
                                                     December 31, 1993 (File
                                                     No. 0-13507) [Exhibit
                                                     10(b)].

10(c)              Second Amendment to Employees'    Incorporated herein by
                   Stock Ownership Plan of Rurban    reference to the
                   Financial Corp., dated March      Corporation's Annual
                   14, 1994 and made to be           Report on Form 10-K for
                   effective as of January 1, 1993   the fiscal year ended
                                                     December 31, 1993 (File
                                                     No. 0-13507) [Exhibit
                                                     10(c)].

10(d)              Third Amendment to Employees'     Incorporated herein by
                   Stock Ownership Plan of Rurban    reference to the
                   Financial Corp., dated March      Corporation's Annual
                   13, 1995                          Report on Form 10-K for
                                                     the fiscal year ended
                                                     December  31,  1994 (File
                                                     No.   0-13507)   [Exhibit
                                                     10(d)].

10(e)              Fourth Amendment to Employees'    Pages 79 through 81 of
                   Stock Ownership Plan of Rurban    this Annual Report on Form
                   Financial Corp., dated            10-K.
                   June 10, 1995 and made to be
                   effective as of January 1, 1995

10(f)              The Rurban Financial Corp.        Incorporated herein by
                   Savings Plan and Trust            reference to the
                                                     Corporation's  Annual
                                                     Report on Form 10-K for
                                                     the fiscal year ended
                                                     December 31, 1988 (File
                                                     No. 0-13507) [Exhibit
                                                     10(d)].

10(g)              First Amendment to The Rurban     Incorporated herein by
                   Financial Corp. Savings Plan      reference to the
                   and Trust, dated December 10,     Corporation's Annual
                   1990 and effective January 1,     Report on Form 10-K for
                   1990                              the fiscal year ended
                                                     December  31,  1990 (File
                                                     No. 0-13507) [Exhibit
                                                     10(g)].

10(h)              Second Amendment to The Rurban    Incorporated herein by
                   Financial Corp. Savings Plan      reference to the
                   and Trust, dated March 11,        Corporation's Annual
                   1991, effective February 1,       Report on Form 10-K for
                   1991                              the fiscal year ended
                                                     December 31, 1992 (File
                                                     No. 0-13507)  [Exhibit
                                                     10(d)].

10(i)              Third Amendment to The Rurban     Incorporated herein by
                   Financial Corp. Savings Plan      reference to the
                   and Trust, dated June 11, 1991    Corporation's Annual
                                                     Report on Form 10-K for
                                                     the fiscal year ended
                                                     December 31, 1992 (File
                                                     No. 0-13507) [Exhibit
                                                     10(e)].

10(j)              Fourth Amendment to The Rurban    Incorporated herein by
                   Financial Corp. Savings Plan      reference to the
                   and Trust, dated July 14,         Corporation's Annual
                   1992, effective May 1, 1992       Report on Form 10-K for
                                                     the fiscal year ended
                                                     December 31, 1992 (File
                                                     No. 0-13507) [Exhibit
                                                     10(f)].

10(k)              Fifth Amendment to The Rurban     Incorporated herein by
                   Financial Corp. Savings Plan      reference to the
                   and Trust, dated March 14, 1994   Corporation's Annual
                                                     Report on Form 10-K for
                                                     the fiscal year ended
                                                     December 31, 1993 (File
                                                     No. 0-13507) [Exhibit
                                                     10(i)].

10(l)              Sixth Amendment to The Rurban     Pages 82 through 84 of
                   Financial Corp. Savings Plan      this Annual Report on Form
                   and Trust dated May 1, 1995       10-K.

10(m)              Summary of Incentive              Incorporated herein by
                   Compensation Plan of State Bank   reference to the
                                                     Corporation's Annual
                                                     Report  on Form  10-K for
                                                     the fiscal year ended
                                                     December 31, 1993 (File
                                                     No. 0-13507) [Exhibit
                                                     10(j)].

10(n)              Summary of Bonus Program          Incorporated herein by
                   adopted by the Trust              reference to the
                   Department of State Bank for      Corporation's Annual
                   the benefit of Robert W.          Report on Form 10-K for
                   Constien in his capacity as       the fiscal year ended
                   Manager of the Trust Department   December 31, 1991 (File
                                                     No. 0-13507) [Exhibit
                                                     10(e)].

10(o)              Summary of Bonus Program for      Incorporated herein by
                   the Trust Department of State     reference to the
                   Bank                              Corporation's Annual
                                                     Report on Form 10-K for
                                                     the fiscal year ended
                                                     December 31, 1992 (File
                                                     No. 0-13507) [Exhibit
                                                     10(i)].

10(p)              Summary of Sales Bonus Program    Incorporated herein by
                   of State Bank                     reference to the
                                                     Corporation's Annual
                                                     Report on Form 10-K for
                                                     the fiscal year ended
                                                     December 31, 1994 (File
                                                     No. 0-13507) [Exhibit
                                                     10(n)].

10(q)              Summary of Rurban Financial       Incorporated herein by
                   Corp. Bonus Plan                  reference to the
                                                     Corporation's Annual
                                                     Report on Form 10-K for
                                                     the fiscal year ended
                                                     December 31, 1993 (File
                                                     No. 0-13507) [Exhibit
                                                     10(q)].

10(r)              Executive Salary Continuation     Incorporated herein by
                   Agreement, dated December 15,     reference to the
                   1994, between Rurban Financial    Corporation's Annual
                   Corp. and Richard C. Burrows      Report on Form 10-K for
                                                     the fiscal year ended
                                                     December 31, 1994 (File
                                                     No. 0-13507)
                                                     [Exhibit 10(p)].

10(s)              Executive Salary Continuation     Pages 85 through 93 of
                   Agreement, dated October 11,      this Annual Report on Form
                   1995, between Rurban Financial    10-K.
                   Corp. and Thomas C. Williams;
                   and Schedule A to
                   Exhibit 10(s) identifying
                   other identical Executive
                   Salary Continuation Agreements
                   between executive officers of
                   Rurban Financial Corp. and
                   Rurban Financial Corp.
10(t)
                   Description of Split-Dollar       Page 94 of this Annual
                   Insurance Policies Maintained     Report on Form 10-K.
                   for Certain Executive Officers
                   of Rurban Financial Corp.

(b)   Reports on Form 8-K.

      There  were no  Current  Reports  on Form 8-K filed  during  the  fiscal
      quarter ended December 31, 1995.

(c)   Exhibits.

      Exhibits filed with this Annual Report on Form 10-K are attached hereto.
      For a list of such exhibits, see "Index to Exhibits" at page 74.

(d)   Financial Statement Schedules.

      None.


<PAGE>


                                  SIGNATURES

      Pursuant to the  requirements  of Section 13 or 15(d) of the  Securities
Exchange Act of 1934,  the Registrant has duly caused this Report to be signed
on its behalf by the undersigned, thereunto duly authorized.

                                    RURBAN FINANCIAL CORP.


Date: March 26, 1996                By:  Thomas C. Williams, President
                                         and Chief Executive Officer

      Pursuant to the  requirements  of the  Securities  Exchange Act of 1934,
this Report has been signed  below by the  following  persons on behalf of the
Registrant and in the capacities and on the dates indicated.

      Name                    Date              Capacity
     ------                  ------            ----------

*Thomas C. Williams             *           President, Chief Executive Officer,
                                            Principal Executive Officer and 
                                            Director

*David E. Manz                  *           Executive Vice President, Secretary,
                                            Treasurer, Chief Financial Officer,
                                            Principal Financial and Accounting
                                            Officer and Director

*Richard C. Burrows             *           Director

*John R. Compo                  *           Director

*Robert A. Fawcett, Jr.         *           Director

*Richard Z. Graham              *           Director

*John H. Moore                  *           Director

*Merlin W. Mygrant              *           Director

*Steven D. VanDemark            *           Director

*J. Michael Walz, D.D.S.        *           Director


*By: Thomas C. Williams
     (Attorney-in-Fact)
Date:   March 26, 1996

<PAGE>
                            RURBAN FINANCIAL CORP.

                          ANNUAL REPORT ON FORM 10-K
                    FOR FISCAL YEAR ENDED DECEMBER 31, 1995


                         INDEX TO FINANCIAL STATEMENTS


                                                                     Pages in
                                                                     this Annual
                                                                     Report on
Description                                                          Form 10-K

Report of Independent Auditors....................................       46

Consolidated Balance Sheets at December 31, 1995
  and 1994........................................................      47-48

Consolidated Statements of Income for the years
  ended December 31, 1995, 1994 and 1993..........................       49

Consolidated Statements of Changes in Shareholders'
  Equity for the three years ended December 31,
  1995............................................................       50

Consolidated Statements of Cash Flows for the
  years ended December 31, 1995, 1994 and
  1993............................................................      51-52

Notes to Consolidated Financial Statements........................      53-73


<PAGE>


                        REPORT OF INDEPENDENT AUDITORS



Board of Directors and Shareholders
Rurban Financial Corp.
Defiance, Ohio


We have  audited  the  accompanying  consolidated  balance  sheets  of  Rurban
Financial Corp. as of December 31, 1995 and 1994 and the related  consolidated
statements of income,  changes in shareholders'  equity and cash flows for the
years ended December 31, 1995, 1994 and 1993.  These financial  statements are
the responsibility of the Corporation's  management.  Our responsibility is to
express an opinion on these financial statements based on our audits.

We  conducted  our  audits in  accordance  with  generally  accepted  auditing
standards.  Those  standards  require  that we plan and  perform  the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement.  An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial  statements.  An audit
also  includes  assessing  the  accounting  principles  used  and  significant
estimates  made by  management,  as well as evaluating  the overall  financial
statement presentation.  We believe that our audits provide a reasonable basis
for our opinion.

In our  opinion,  the  consolidated  financial  statements  referred  to above
present fairly,  in all material  respects,  the financial  position of Rurban
Financial  Corp.  as of  December  31,  1995 and 1994,  and the results of its
operations and its cash flows for the years ended December 31, 1995,  1994 and
1993 in conformity with generally accepted accounting principles.

As discussed in Note 1, the Corporation adopted the provisions of Statement of
Financial Accounting Standards No. 115, "Accounting for Certain Investments in
Debt and Equity Securities", as of January 1, 1994.




                                          Crowe, Chizek and Company LLP

South Bend, Indiana
January 19, 1996

<PAGE>



                   RURBAN FINANCIAL CORP. AND SUBSIDIARIES
                         CONSOLIDATED BALANCE SHEETS
                          December 31, 1995 and 1994


                                                        1995          1994
                                                        ----          ----
ASSETS
Cash and due from banks (Note 10) ............   $  21,067,131    $  20,606,577
Federal funds sold ...........................       7,312,525        4,571,594
                                                 -------------    -------------
   Total cash and cash equivalents ...........      28,379,656       25,178,171
                                                 -------------    -------------
Interest-earning deposits in other financial
  institutions ...............................         180,000          346,324
Securities available-for-sale (Note 2) .......      90,329,866       59,811,855
Securities held-to-maturity (Note 2)
  (Fair value: 1994 - $ 10,346,000) ..........            --         10,370,912
Loans
   Commercial, financial and agricultural ....      63,444,036       62,866,040
   Real estate mortgage ......................     152,555,540      152,136,086
   Installment ...............................      61,600,664       65,676,876
                                                 -------------    -------------
      Total loans ............................     277,600,240      280,679,002
   Deferred loan fees, net ...................        (235,396)        (262,204)
   Allowance for loan losses (Note 3) ........      (4,270,000)      (4,770,000)
                                                 -------------    -------------
      Net loans ..............................     273,094,844      275,646,798
                                                 -------------    -------------
Loans held for sale ..........................       2,949,293        4,689,611
Premises and equipment, net (Note 4) .........       8,383,717        9,264,085
Accrued interest receivable ..................       3,240,154        2,694,374
Other assets .................................       4,668,235        5,545,354
                                                 -------------    -------------

      Total assets ...........................   $ 411,225,765    $ 393,547,484
                                                 =============    =============

See accompanying notes to consolidated financial statements.

<PAGE>
                   RURBAN FINANCIAL CORP. AND SUBSIDIARIES
                          CONSOLIDATED BALANCE SHEETS
                          December 31, 1995 and 1994


                                                        1995           1994
                                                        ----           ----
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
   Deposits
      Noninterest-bearing ......................   $ 48,721,000   $  50,381,190
      Interest-bearing (Note 5) ................    319,075,538     304,264,446
                                                   ------------   -------------
         Total deposits ........................    367,796,538     354,645,636
                                                   ------------   -------------
   Accrued interest payable ....................      1,035,048         908,248
   Other liabilities ...........................      2,315,688       2,319,013
                                                   ------------   -------------

         Total liabilities .....................    371,147,274     357,872,897

Commitments, off-balance-sheet risk and
  contingencies (Note 10)

Common stock subject to repurchase obligation
  in ESOP (Note 6) (1995 -  297,467 shares out-
  standing; 1994 - 271,428 shares outstanding) .      9,333,027       6,834,557
Common stock:  stated value $2.50 per share;
  5,000,000 shares authorized; 1995 - 1,886,911
  shares outstanding; 1994 - 1,912,950 shares
  outstanding ..................................      4,717,277       4,782,375
Additional paid-in capital .....................      5,798,813       8,232,185
Retained earnings ..............................     19,779,897      16,995,711
Net unrealized appreciation (depreciation) on
  securities available-for-sale, net of tax of
  $231,549 in 1995 and $602,851 in 1994 ........        449,477      (1,170,241)
                                                   ------------   -------------

   Total liabilities and shareholders' equity ..   $411,225,765   $ 393,547,484
                                                   ============   =============

See accompanying notes to consolidated financial statements.
<PAGE>


                   RURBAN FINANCIAL CORP. AND SUBSIDIARIES
                       CONSOLIDATED STATEMENTS OF INCOME
                 Years ended December 31, 1995, 1994 and 1993

                                            1995          1994         1993
                                            ----          ----         ----
Interest income
   Interest and fees on loans           $26,539,689   $20,421,474  $17,948,466
   Interest and dividends on securities
      Taxable                             3,756,764     2,485,695    2,989,616
      Non-taxable                           426,178       346,485      445,580
   Other interest income                    707,596       220,244       94,625
                                         ----------   -----------   ----------
         Total interest income           31,430,227    23,473,898   21,478,287

Interest expense
   Interest on deposits (Note 5)         14,197,998     9,486,706    8,856,704
   Interest on short-term borrowings         40,050       125,647       52,406
                                         ----------   -----------   ----------
      Total interest expense             14,238,048     9,612,353    8,909,110
                                         ----------   -----------   ----------

Net interest income                      17,192,179    13,861,545   12,569,177

Provision for loan losses (Note 3)        1,451,898       701,490      795,486
                                         ----------   -----------   ----------

Net interest income after provision
  for loan losses                        15,740,281    13,160,055   11,773,691

Noninterest income
   Service charges on deposits            1,184,787     1,021,685    1,004,321
   Trust department income                1,946,013     1,784,626    1,616,930
   Data processing fees                   2,038,948     1,932,045    1,982,739
   Net securities gains (losses)
     (Notes 2 and 8)                          3,113        (8,556)      (6,399)
   Net gains on loan sales                   83,919       112,156      430,321
   Other income                             496,419       470,727      405,917
                                         ----------   -----------   ----------
      Total noninterest income            5,753,199     5,312,683    5,433,829

Noninterest expense
   Salaries and employee benefits
     (Note 6)                             6,909,268     5,736,434    5,275,815
   Net occupancy expense of premises        869,678       788,377      818,739
   Equipment rentals, depreciation and
     maintenance                          1,889,540     1,251,898    1,061,832
   Other expenses (Note 7)                5,603,077     4,886,990    4,353,348
                                         ----------   -----------   ----------
      Total noninterest expense          15,271,563    12,663,699   11,509,734
                                         ----------   -----------   ----------

Income before income tax expense          6,221,917     5,809,039    5,697,786

Income tax expense (Note 8)               2,127,104     1,898,665    1,822,805
                                         ----------   -----------   ----------

Net income                               $4,094,813   $ 3,910,374   $3,874,981
                                         ==========   ===========   ==========

Earnings per common share (Note 1)       $     1.87   $      1.89   $     1.91
                                         ===========  ============  ===========


See accompanying notes to consolidated financial statements.
<PAGE>


<TABLE>
                   RURBAN FINANCIAL CORP. AND SUBSIDIARIES
          CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
                      Three years ended December 31, 1995


                                                                               Net Unrealized
                                                                                Appreciation
                        Common Stock                                           (Depreciation)
                           Subject                                             On Securities
                        To Repurchase                  Additional                Available-
                         Obligation in      Common      Paid-In      Retained     For-Sale,     Treasury
                            ESOP            Stock       Capital      Earnings    Net of Tax      Stock

<S>                       <C>           <C>            <C>          <C>           <C>          <C>        
Balances at January 1,
  1993                    $3,891,597    $  4,419,320   $8,649,167   $11,696,464   $    -       $  (16,840)

Net income for the year        -               -            -         3,874,981        -              -
Cash dividends declared
  ($0.60 per share)            -               -            -        (1,221,980)       -              -
Transfer to common stock
  subject to repurchase
  obligation in ESOP       1,324,621             500   (1,325,121)         -           -              -
Retirements of treasury
  stock                        -             (16,840)       -              -           -           16,840
                           ---------       ---------    ---------     ---------     ---------    --------

Balances at December 31,
  1993                     5,216,218       4,402,980    7,324,046    14,349,465        -              -

Adoption of SFAS No. 115,
  net of tax of $102,256
  (Note 1)                     -               -            -             -          198,496          -
Net income for the year        -               -            -         3,910,374         -             -
Cash dividends declared
  ($0.60 per share)            -               -            -        (1,264,128)        -             -
Transfer to common stock
  subject to repurchase
  obligation in ESOP       1,618,339          (8,105)  (1,610,234)        -             -             -
Common stock issued
  during the year (Note 1)     -             387,500    2,518,373         -             -             -
Net change in unrealized
  appreciation
  (depreciation) on
  securities available-
  for-sale, net of tax of
  $705,107                     -               -            -             -       (1,368,737)         -
                           ---------       ---------    ---------     ---------     ---------    --------

Balances at December 31,
  1994                     6,834,557       4,782,375    8,232,185    16,995,711   (1,170,241)         -


Net income for the year        -               -            -         4,094,813        -              -
Cash dividends declared
  ($0.60 per share)            -               -            -        (1,310,627)       -              -
Transfer to common stock
  subject to repurchase
  obligation in ESOP       2,498,470         (65,098)  (2,433,372)        -            -              -
Net change in unrealized
  appreciation
  (depreciation) on
  securities available-
  for-sale, net of tax of
  $834,400                     -               -            -              -       1,619,718          -
                           ---------       ---------    ---------     ---------    ---------    --------

Balances at December 31,
  1995                    $9,333,027    $  4,717,277   $5,798,813   $19,779,897   $   49,477     $    -
                          ==========    ============   ==========   ==========    ==========    ========
</TABLE>
See accompanying notes to consolidated financial statements.

<PAGE>

                    RURBAN FINANCIAL CORP. AND SUBSIDIARIES
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                 Years ended December 31, 1995, 1994 and 1993

<TABLE>

                                                    1995            1994            1993
                                                    ----            ----            ----
<S>                                            <C>             <C>             <C>            
Cash flows from operating activities
   Cash received from customers - fees
     and commissions .......................   $  5,666,167    $  5,209,083    $  5,009,907
   Cash paid to suppliers and employees ....    (14,117,567)    (10,448,128)    (10,125,110)
   Loans originated for sale ...............    (10,418,133)    (12,503,521)    (44,609,167)
   Proceeds from sales of loans
     held for sale .........................     12,242,370      12,595,646      41,816,958
   Interest received .......................     30,857,639      23,249,685      21,600,312
   Interest paid ...........................    (14,111,248)     (9,353,404)     (9,078,862)
   Income taxes paid .......................     (2,086,479)     (1,893,366)     (1,933,000)
                                               ------------    ------------    ------------
      Net cash from operating activities ...      8,032,749       6,855,995       2,681,038

Cash flows from investing activities
   Net change in interest-earning
     deposits in other financial
     institutions ..........................        166,324        (166,324)        (80,000)
   Proceeds from sales of:
      Securities available-for-sale ........      2,263,104            --              --   
      Securities held for sale .............           --              --         1,025,941
   Proceeds from principal repayments,
      maturities, and calls of:
      Securities available-for-sale ........     22,190,401      22,285,066            --   
      Securities held-to-maturity ..........      3,318,925       2,250,856            --   
      Investment securities ................           --              --        27,927,979
      Securities held for sale .............           --              --         4,529,222
   Purchase of:
      Securities available-for-sale ........    (41,660,219)    (17,500,656)           --   
      Securities held-to-maturity ..........     (3,802,079)     (4,433,520)           --   
      Investment securities ................           --              --       (19,878,601)
      Securities held for sale .............           --              --        (4,959,433)
   Net change in loans .....................        427,936     (17,010,807)    (17,824,554)
   Recoveries on loan charge-offs ..........        698,928         329,463         441,811
   Premises and equipment expenditures .....       (274,859)     (2,105,869)       (394,756)
   Purchase of banking subsidiary,
     net of cash received ..................           --         3,265,954            --   
                                               ------------    ------------    ------------
      Net cash from investing
         activities ........................    (16,671,539)    (13,085,837)     (9,212,391)

Cash flows from financing activities
   Net change in deposits ..................     13,150,902      15,335,409       3,906,855
   Net change in short-term borrowings .....           --        (1,000,000)      1,000,000
   Cash dividends paid .....................     (1,310,627)     (1,264,128)     (1,221,980)
                                               ------------    ------------    ------------
      Net cash from financing activities ...     11,840,275      13,071,281       3,684,875
                                               ------------    ------------    ------------

Net change in cash and cash equivalents ....      3,201,485       6,841,439      (2,846,478)

Cash and cash equivalents at
  beginning of year ........................     25,178,171      18,336,732      21,183,210
                                               ------------    ------------    ------------

Cash and cash equivalents at end of year ...   $ 28,379,656    $ 25,178,171    $ 18,336,732
                                               ============    ============    ============
Reconciliation of net income to
  net cash from operating activities
   Net income ..............................   $  4,094,813    $  3,910,374    $  3,874,981
   Adjustments to reconcile net income
     to net cash from operating activities
      Depreciation .........................      1,155,227         961,919         776,557
      Amortization of intangible assets ....        634,000         217,000         203,000
      Provision for loan losses ............      1,451,898         701,490         795,486
      Net securities (gains) losses (Note 2)         (3,113)          8,556           6,399
      Loans originated for sale ............    (10,418,133)    (12,503,521)    (44,609,167)
      Proceeds from sales of loans
        held for sale ......................     12,242,370      12,595,646      41,816,958
      Net gains on loan sales ..............        (83,919)       (112,156)       (430,321)
   Change in assets and liabilities,
     net of effects from acquisition
     of branches and purchase
     of banking subsidiary
      Deferred loan fees, net ..............        (26,808)         37,822         (30,058)
      Accrued interest receivable ..........       (545,780)       (262,035)        152,083
      Income taxes receivable ..............         40,625           5,299        (110,195)
      Other assets .........................       (631,906)        234,380          93,004
      Accrued interest payable .............        126,800         258,949        (169,752)
      Other liabilities ....................         (3,325)        802,272         312,063
                                               ------------    ------------    ------------
         Net cash from operating activities    $  8,032,749    $  6,855,995    $  2,681,038
                                               ============    ============    ============

</TABLE>
See also Note 14


See accompanying notes to consolidated financial statements.

<PAGE>



                    RURBAN FINANCIAL CORP. AND SUBSIDIARIES
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                      December 31, 1995, 1994, and 1993



NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations and Industry Segment Information:  Rurban Financial Corp.
is a bank  holding  company,  organized  under  Ohio  law,  that  owns all the
outstanding  stock of The State Bank and Trust  Company  ("State  Bank"),  The
Peoples Banking Company  ("Peoples  Bank"),  The First National Bank of Ottawa
("First National Bank"),  The Citizens Savings Bank Company ("Citizens Savings
Bank"), Rurbanc Data Services, Inc. ("RDSI") and Rurban Life Insurance Company
("Rurban Life") (together referred to as "the Corporation"). The Corporation's
subsidiary  banks grant credit and accept deposits from their customers in the
normal course of business primarily in the northwestern Ohio region. Rurbanc's
business is comprised  of  providing  data  processing  services  primarily to
financial  institutions  located in the  northwest  area of Ohio.  Rurban Life
accepts  reinsurance  ceded  in  part by  USLIFE  from  the  credit  life  and
disability  insurance  purchased by customers of the Corporation's  subsidiary
banks.  The  Corporation  operates  primarily  in the banking  industry  which
accounts for more than 90% of its revenues, operating income and assets.

Basis of  Reporting:  The accompanying  consolidated  financial statements in-
clude   the   accounts  of  Rurban   Financial  Corp.  and  its   wholly-owned
subsidiaries.  All significant  inter-company  balances and transactions  have
been eliminated in consolidation.

On October 3,  1994,  the  Corporation  acquired  100% of the common  stock of
Citizens  Savings Bank located in  Pemberville,  Ohio with  approximately  $60
million in assets.  The transaction was accounted for as a purchase.  Citizens
Savings Bank's  results of operations are included in the income  statement of
the  Corporation  beginning  as of the purchase  date.  Each share of Citizens
Savings  Bank's  common stock was  exchanged for $73.39 in cash or 3.91 common
shares of the  Corporation's  common stock.  The  Corporation  paid a total of
$2,378,046 and issued 155,000 common shares in the acquisition.

Presented  below are the  consolidated  proforma  results of operations of the
Corporation  for the years ended  December  31, 1994 and 1993,  assuming  this
acquisition had occurred as of January 1, of each year.

                                                        1994          1993
                                                        ----          ----

   Net interest income ............................ $15,569,000    $14,965,000
   Net income .....................................   3,687,000      3,382,000
   Earnings per share .............................        1.69           1.55

Use of  Estimates  In  Preparing  Financial  Statements:  The  preparation  of
financial   statements  in  conformity  with  generally  accepted   accounting
principles  requires  management to make estimates and assumptions that effect
the reported  amounts of assets,  liabilities  and  disclosure  of  contingent
assets  and  liabilities  at the  date  of the  financial  statements  and the
reported amounts of revenue and expenses during the reporting  period.  Actual
results could differ from those estimates.


<PAGE>


- --------------------------------------------------------------------------------
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
- --------------------------------------------------------------------------------

Certain  Significant  Estimates:  Areas  involving  the  use  of  management's
estimates  and  assumptions   include  the  allowance  for  loan  losses,  the
realization  of deferred  tax  assets,  fair  values of  securities  and other
financial instruments, the determination and carrying value of impaired loans,
the carrying  value of loans held for sale,  the carrying  value of other real
estate, the determination of other-than-temporary reductions in the fair value
of securities, recognition and measurement of loss contingencies, depreciation
of  premises  and  equipment  and  the  carrying  value  and  amortization  of
intangibles.  Estimates  that are more  susceptible to change in the near term
include the allowance  for loan losses,  securities  valuations,  the carrying
value of loans  held for  sale,  the  carrying  value of  intangibles  and the
realization of deferred tax assets.

Certain  Vulnerability  Due to Certain  Concentrations:  Management  is of the
opinion that no concentrations  exist that make the Corporation  vulnerable to
the risk of near-term severe impact.

Securities:  On January 1, 1994,  the  Corporation  adopted the  provisions of
Statement of Financial  Accounting  Standards (SFAS) No. 115,  "Accounting for
Certain Investments in Debt and Equity Securities". The Corporation classifies
securities into  held-to-maturity,  available-for-sale and trading categories.
Held-to-maturity  securities are those which the  Corporation has the positive
intent and ability to hold to maturity,  and are  reported at amortized  cost.
Available-for-sale  securities are those the Corporation may decide to sell if
needed  for   liquidity,   asset-liability   management   or  other   reasons.
Available-for-sale  securities  are  reported at fair value,  with  unrealized
gains and losses included as a separate component of shareholders' equity, net
of tax. Trading  securities are bought  principally for sale in the near term,
and are reported at fair value with  unrealized  gains and losses  included in
earnings.  Adoption of SFAS No. 115 on January 1, 1994 increased shareholders'
equity by $198,496, net of $102,256 tax effect.

In November 1995, the Financial Accounting Standards Board ("FASB") issued its
Special Report,  A Guide to  Implementation  of SFAS No. 115 on Accounting for
Certain Investments in Debt and Equity Securities  ("Guide").  As permitted by
the Guide, on December 31, 1995, the Corporation made a one-time  reassessment
and  transferred  securities  from  the  held-to-maturity   portfolio  to  the
available-for-sale portfolio. At the date of transfer, these securities had an
amortized cost of $10,854,066  and the transfer  increased the unrealized gain
on  securities  available-for-sale  by $210,566  and  shareholders'  equity by
$138,974, net of tax of $71,592.

Realized  gains and losses  resulting from the sale of securities are computed
by the specific  identification method. Interest and dividend income, adjusted
by  amortization  of purchase  premium or  discount,  is included in earnings.
Premiums and  discounts on  securities  are  recognized  using the level yield
method over the estimated life of the security.



<PAGE>


- --------------------------------------------------------------------------------
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
- --------------------------------------------------------------------------------

Prior to January 1, 1994,  securities were reported at amortized cost,  except
for  securities  held for sale,  which were  reported  at the lower of cost or
market value in the  aggregate.  Net  unrealized  losses were  recognized in a
valuation allowance by charges to income.

Loans Held for Sale:  Loans intended for sale are carried at the lower of cost
or  estimated  market  value  in the  aggregate.  Net  unrealized  losses  are
recognized in a valuation allowance by charges to income.

Interest  Income on Loans:  Interest on loans is accrued  over the term of the
loans  based  upon  the  principal   outstanding.   Management  reviews  loans
delinquent  90 days or more to  determine if the  interest  accrual  should be
discontinued.  When serious doubt exists as to the  collectibility  of a loan,
the accrual of interest is discontinued. Effective January 1, 1995, under SFAS
No. 114,  "Accounting  by Creditors for  Impairment of a Loan",  as amended by
SFAS No. 118, the carrying value of impaired loans is periodically adjusted to
reflect cash payments,  revised  estimates of future cash flows, and increases
in the present value of expected  cash flows due to the passage of time.  Cash
payments  representing  interest  income are  reported  as such and other cash
payments are reported as reductions in carrying value.  Increases or decreases
in  carrying  value due to  changes in  estimates  of future  payments  or the
passage of time are reported as a component of the provision for loan losses.

Loan Fees and Costs: Loan fees, net of direct origination costs, are deferred.
The net amount deferred is reported in the consolidated balance sheets as part
of loans and is  recognized  into  interest  income  over the term of the loan
using the level yield method.

Allowance  For Loan Losses:  An allowance for loan losses is  established  and
maintained  because  some  loans may not be repaid in full.  Increases  to the
allowance  are  recorded  by a provision  for loan losses  charged to expense.
Estimating  the risk of loss and the amount of loss on any loan is necessarily
subjective.  Accordingly, the allowance is maintained by management at a level
considered  adequate to cover losses that are currently  anticipated  based on
past loss experience, general economic conditions,  information about specific
borrower situations  including their financial position and collateral values,
and other factors and estimates  which are subject to change over time.  While
management may  periodically  allocate  portions of the allowance for specific
problem  loan  situations,  the entire  allowance  is  available  for any loan
charge-offs that may occur. A loan is charged off by management as a loss when
deemed   uncollectible,   although  collection  efforts  continue  and  future
recoveries may occur.



<PAGE>


- --------------------------------------------------------------------------------
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
- --------------------------------------------------------------------------------

SFAS No.  114 and SFAS No.  118 were  adopted  effective  January  1, 1995 and
require recognition of loan impairment.  Loans are considered impaired if full
principal or interest  payments are not  anticipated  in  accordance  with the
contractual  loan terms.  Impaired  loans are carried at the present  value of
expected future cash flows discounted at the loan's effective interest rate or
at the fair value of the  collateral  if the loan is collateral  dependent.  A
portion of the  allowance for loan losses is allocated to impaired  loans.  If
these  allocations  cause the allowance  for loan losses to require  increase,
such increase is reported as a component of the provision for loan losses. The
effect of adopting these standards in 1995 was not material.

Smaller-balance  homogeneous loans are evaluated for impairment in total. Such
loans include  residential first mortgage loans secured by one-to-four  family
residences,  residential  construction loans, and automobile,  home equity and
second  mortgage loans.  Commercial  loans and mortgage loans secured by other
properties  are  evaluated  individually  for  impairment.  When  analysis  of
borrower operating results and financial  condition  indicates that underlying
cash  flows  of the  borrower's  business  are not  adequate  to meet its debt
service  requirements,  the loan is evaluated  for  impairment.  Often this is
associated  with a  delay  or  shortfall  in  payments  of 30  days  or  more.
Commercial loans are rated on a scale of 1 to 5, with 1 being satisfactory,  2
watch,  3 substandard,  4 doubtful,  and 5 as loss which are then charged off.
Loans graded a 4 or worse are considered for  impairment.  Loans are generally
moved to  nonaccrual  status  when 90 days or more past due.  These  loans are
often considered  impaired.  Impaired loans, or portions thereof,  are charged
off when deemed uncollectible. This typically occurs when the loan is 120 days
or more past due. The nature of  disclosures  for impaired loans is considered
generally   comparable  to  prior  nonaccrual  and   renegotiated   loans  and
non-performing and past-due asset disclosures.

Premises and  Equipment:  Buildings and  improvements  are  depreciated  using
primarily  the  straight-line  method with useful lives  ranging from 10 to 50
years.  Furniture and equipment are depreciated  using the  straight-line  and
declining-balance methods with useful lives ranging predominantly from 5 to 20
years.  Maintenance  and  repairs  are  expensed  and major  improvements  are
capitalized.

Intangible  Assets:  Goodwill arising from the acquisition of subsidiary banks
is amortized over 5 to 25 years using the straight-line  method.  Core deposit
intangibles are amortized on an accelerated basis over 10 years, the estimated
life of the deposits acquired.  As of December 31, 1995,  unamortized goodwill
totaled  approximately  $784,000  and  unamortized  core  deposit  intangibles
totaled approximately $521,000.

Other Real Estate Owned: Real estate properties  acquired through,  or in lieu
of,  loan  foreclosure  are  initially  recorded  at fair value at the date of
acquisition.  Any  reduction  to fair  value  from the  carrying  value of the
related loan at the time of  acquisition  is accounted  for as a loan loss and
charged against the allowance for loan losses. After acquisition,  a valuation
allowance  is recorded  through a charge to income for the amount of estimated
selling  costs.  Valuations  are  periodically  performed by  management,  and
valuation  allowances  are adjusted  through a charge to income for changes in
fair value or estimated  selling  costs.  Other real estate owned  amounted to
approximately   $320,000   and   $400,000  at  December  31,  1995  and  1994,
respectively,  and is included  in other  assets in the  consolidated  balance
sheets.


<PAGE>


- --------------------------------------------------------------------------------
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
- --------------------------------------------------------------------------------

Income Taxes: The Corporation files an annual consolidated  federal income tax
return. Income tax is based upon the asset and liability method. The asset and
liability  method  requires the Corporation to record income tax expense based
on the amount of taxes due on its  consolidated tax return plus deferred taxes
computed  based  on  the  expected   future  tax   consequences  of  temporary
differences  between  the  carrying  amounts  and  tax  bases  of  assets  and
liabilities, using enacted tax rates.

Employee  Benefits (See Note 6): The  Corporation  sponsors an employee  stock
ownership plan (ESOP) and 401(k) profit  sharing plan for which  contributions
are made and expensed  annually.  The Corporation  provides  split-dollar life
insurance plans for certain executive  officers of the Corporation.  Also, the
Corporation  sponsors a  supplemental  retirement  plan for certain  executive
officers of the Corporation.

Postretirement Health Care Benefits: The Corporation sponsors a postretirement
health  care  plan  that  covers  both  salaried  and  nonsalaried  employees.
Effective January 1, 1993, the Corporation  adopted the provisions of SFAS No.
106, "Employers' Accounting For Postretirement  Benefits Other Than Pensions".
SFAS No. 106 requires the accrual,  during the years that employees render the
necessary  service,  of the expected cost of providing  postretirement  health
care benefits to employees and their beneficiaries and covered dependents. The
Corporation's  postretirement health care plan provides that retired employees
may  remain  on  the  Corporation's  health  care  plan  with  each  retiree's
out-of-pocket  contribution to the Corporation  equal to their premium expense
determined exclusively on the loss experience of the retirees in the plan.
The impact of adopting the guidance was not material.

Earnings Per Common  Share:  Earnings and dividends per common share have been
computed based on the weighted average number of shares outstanding during the
periods presented, restated for all stock dividends and stock splits. In 1994,
a  two-for-one  split was declared and paid.  The number of shares used in the
computation of earnings per common share was 2,184,378 for 1995, 2,067,597 for
1994 and 2,029,378 for 1993.

Dividend  Restriction:  Certain  restrictions  exist  regarding the ability of
the  subsidiaries  to transfer funds to Rurban  Financial Corp. in the form of
cash  dividends,  loans or advances.  As of December  31, 1995,  approximately
$3,665,000  of  undistributed  earnings  of  the  subsidiaries,   included  in
consolidated  retained  earnings,  was  available for  distribution  to Rurban
Financial Corp. as dividends without prior regulatory approval.


<PAGE>


- --------------------------------------------------------------------------------
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
- --------------------------------------------------------------------------------

Concentrations of Credit Risk: The Corporation grants commercial,  real estate
and installment loans to customers mainly in northwest Ohio.  Commercial loans
include  loans  collateralized  by  business  assets  and  agricultural  loans
collateralized  by  crops  and  farm  equipment.   Commercial  loans  make  up
approximately  23% of the loan  portfolio  and the  loans are  expected  to be
repaid from cash flow from operations of businesses. Real estate loans make up
approximately  55% of the  loan  portfolio  and  are  collateralized  by  both
commercial   and   residential   real  estate.   Installment   loans  make  up
approximately  22% of the loan portfolio and are primarily  collateralized  by
consumer assets.

Financial Instruments With  Off-Balance-Sheet  Risk: The Corporation,  in  the
normal course of business,  makes  commitments  to extend credit which are not
reflected in the  consolidated  financial  statements. A summary of these com-
mitments is disclosed in Note 10.

Statements of Cash Flows: For purposes of reporting cash flows,  cash and cash
equivalents  is defined  to include  cash on hand,  demand  deposits  in other
financial  institutions  and federal funds sold with  maturities of 90 days or
less. The Corporation  reports net cash flows for customer loan  transactions,
deposit transactions, short-term borrowings with maturities of 90 days or less
and interest-earning deposits in other financial institutions.

Reclassifications:  Certain amounts appearing in the financial  statements and
notes  thereto  for the  years  ended  December  31,  1994 and 1993  have been
reclassified to conform with the December 31, 1995 presentation.


NOTE 2 - SECURITIES

Information  related to the  amortized  cost and fair value of  securities  at
December 31, 1995 and 1994 is provided below:


                                              Gross       Gross
 Securities Available-for-Sale  Amortized  Unrealized  Unrealized
        1995                      Cost        Gains      Losses     Fair Value
 -----------------------------  ---------  ----------  ----------   ----------
U.S. Treasury and U.S.
  Government agency
  securities                    $73,799,068   $574,819   $(122,386)  $74,251,501
Obligations of states and
  political subdivisions          9,365,076    191,846     (13,527)    9,543,395
Mortgage-backed securities        5,295,474     62,183     (11,909)    5,345,748
                                -----------   --------   ---------    ----------
   Total debt securities
     available-for-sale          88,459,618    828,848    (147,822)   89,140,644
Marketable equity securities      1,189,222          -           -     1,189,222
                                -----------   --------   ---------    ----------

   Total securities available-
     for-sale                   $89,648,840   $828,848   $(147,822)  $90,329,866
                                ===========   ========   =========   ===========

<PAGE>


- --------------------------------------------------------------------------------
NOTE 2 - SECURITIES (Continued)
- --------------------------------------------------------------------------------

                                              Gross       Gross
 Securities Available-for-Sale  Amortized  Unrealized  Unrealized
        1994                      Cost        Gains      Losses     Fair Value
 -----------------------------  ---------  ----------  ----------   ----------
U.S. Treasury and U.S.
  Government agency
  securities                   $51,925,952   $    712 $(1,393,582)  $50,533,082
Mortgage-backed securities       8,783,192     19,356    (399,578)    8,402,970
                               -----------   --------   ---------   ----------
   Total debt securities
     available-for-sale         60,709,144     20,068  (1,793,160)   58,936,052
Marketable equity securities       875,803          -           -       875,803
                               -----------   --------   ---------    ----------

   Total securities available-
     for-sale                  $61,584,947   $ 20,068  $(1,793,160) $59,811,855
                               ===========   ========  ===========  ===========

                                              Gross       Gross
 Securities Held-to-Maturity    Amortized  Unrealized  Unrealized
        1994                      Cost        Gains      Losses     Fair Value
 ---------------------------    ---------  ----------  ----------   ----------
U.S. Treasury and U.S.
  Government agency
  securities                   $ 1,482,576   $  1,811   $  (3,387)  $1,481,000
Obligations of states and
  political subdivisions         8,888,336     74,229     (97,565)   8,865,000
                               -----------   --------   ---------   ----------

   Total securities held-
     to-maturity               $10,370,912   $ 76,040   $(100,952) $10,346,000
                               ===========   ========   =========  ===========

The amortized cost and fair values of debt securities at December 31, 1995, by
contractual  maturity,  are shown below.  Expected  maturities may differ from
contractual  maturities because borrowers may have the right to call or prepay
obligations with or without call or prepayment penalties.

                                                        Available-for-Sale
                                                       --------------------
                                                      Amortized
                                                        Cost       Fair Value
                                                     ----------    ----------
   Due in one year or less                          $29,399,818   $29,481,607
   Due after one year through five years             51,421,608    51,889,174
   Due after five years through ten years             2,302,918     2,387,838
   Due after ten years                                   39,800        36,277
                                                     ----------   -----------
                                                     83,164,144    83,794,896
   Mortgage-backed securities                         5,295,474     5,345,748
                                                     ----------   -----------

     Total debt securities                          $88,459,618   $89,140,644
                                                    ===========   ===========

<PAGE>
- --------------------------------------------------------------------------------
NOTE 2 - SECURITIES (Continued)
- --------------------------------------------------------------------------------

Proceeds,  gross gains and gross losses  realized from sales of securities for
the years ended December 31, 1995, 1994 and 1993 are as follows:

                                          1995          1994          1993
                                          ----          ----          ----

Proceeds from sales of debt
  securities available-for-sale        $2,263,104   $    -          $     -
Proceeds from sales of marketable
  equity securities held for sale           -            -            1,025,941
                                        ---------    -----------    -----------

    Total proceeds from sales
      of securities                    $2,263,104   $    -          $ 1,025,941
                                       ==========   ============    ===========

Gross gains from sales of debt
   securities available-for-sale       $   11,975   $    -          $     -
Gross losses from sales of debt
   securities available-for-sale           (8,672)       -                -
Net losses on calls of securities
   available-for-sale                        (190)       -                -
Net losses on calls of securities
   held-to-maturity                           -         (8,556)           -
Net losses from sales of marketable
  equity securities held for sale
  and calls of debt investment
  securities                                  -          -              (6,399)
                                       ---------    -----------      ---------

    Net securities gains (losses)      $    3,113    $  (8,556)     $   (6,399)
                                       ==========    ==========    ===========

At December 31, 1995 there were no holdings of  securities  of any one issuer,
other than the U.S. Government and its agencies and corporations, in an amount
greater than 10% of shareholders' equity.

Securities with an amortized cost of approximately $47,893,000 and $40,753,000
as of December 31, 1995 and 1994, respectively,  were pledged to secure public
and trust deposits.


<PAGE>
- --------------------------------------------------------------------------------
NOTE 3 - ALLOWANCE FOR LOAN LOSSES
- --------------------------------------------------------------------------------

The  following is a summary of the activity in the  allowance  for loan losses
account for the years ended December 31, 1995, 1994 and 1993:

                                          1995          1994          1993
                                          ----          ----          ----

Balance at beginning of year           $4,770,000    $3,390,000    $3,086,443
Allowance of acquired bank                   -        1,100,000          -
Provision for loan losses               1,451,898       701,490       795,486
Recoveries credited to the allowance      698,928       329,463       441,811
Losses charged to the allowance        (2,650,826)     (750,953)     (933,740)
                                       ----------    ----------     ---------

   Balance at end of year              $4,270,000    $4,770,000    $3,390,000
                                       ==========    ==========    ==========

At  December  31,  1995 and 1994,  loans  past due more than 90 days and still
accruing interest approximated $711,000 and $1,198,000, respectively.

Information  regarding  impaired  loans  is as  follows  for the  year  ending
December 31, 1995:

   Average investment in impaired loans                              $2,542,000
   Interest income recognized on impaired loans
     including interest income recognized on cash basis                  32,000
   Interest income recognized on impaired loans on cash basis            32,000

Information regarding impaired loans at December 31, 1995
   is as follows:

   Balance of impaired loans                                         $1,835,000
   Less portion for which no allowance for loan losses is allocated    (302,000)

   Portion of impaired loan balance for which an
     allowance for loan losses is allocated                          $1,533,000
                                                                     ==========

   Portion of allowance for loan losses allocated to impaired
     loan balance                                                    $  643,000
                                                                     ==========

Loans on which the  recognition of interest has been  discontinued  or reduced
totaled  approximately  $3,538,000 at December 31, 1994.  Interest  income not
recognized on these loans totaled  approximately  $289,000 and $189,000 during
1994 and 1993, respectively.

<PAGE>


- --------------------------------------------------------------------------------
NOTE 4 - PREMISES AND EQUIPMENT, NET
- --------------------------------------------------------------------------------

Premises and equipment are stated at cost, less accumulated depreciation,  and
consist of the following at December 31, 1995 and 1994:

                                                      1995         1994

     Land                                          $  966,579   $  976,579
     Buildings and improvements                     6,927,945    7,002,690
     Furniture and equipment                        5,980,928    5,647,452
                                                   ----------   ----------
        Total cost                                 13,875,452   13,626,721
     Accumulated depreciation                      (5,491,735)  (4,362,636)
                                                   ----------   ----------

        Premises and equipment, net                $8,383,717   $9,264,085
                                                   ==========   ==========


NOTE 5 - INTEREST-BEARING DEPOSITS

Included in  interest-bearing  deposits are time deposits in  denominations of
$100,000 or more of  approximately  $33,426,000 and $32,642,000 as of December
31, 1995 and 1994, respectively.

Interest  expense on time  deposits in  denominations  of $100,000 or more was
approximately  $1,090,000,  $1,205,000  and  $1,012,000  for the  years  ended
December 31, 1995, 1994 and 1993, respectively.


NOTE 6 - EMPLOYEE BENEFITS

Employee Stock Ownership Plan: The Corporation has a noncontributory  employee
stock  ownership  plan (ESOP)  covering  substantially  all  employees  of the
Corporation's subsidiaries.  Each eligible employee is vested based upon years
of  service,  including  prior  years of  service.  Contributions  and related
expense  attributable  to the plan included in salaries and employee  benefits
were  approximately  $374,000,  $274,000 and $273,000 in 1995,  1994 and 1993,
respectively.

For corporations not listed on NASDAQ,  ERISA rules require  employers with an
ESOP to agree to repurchase shares from participants for a certain time period
following the distribution of shares to the  participants.  The  Corporation's
common stock subject to repurchase  obligation in ESOP had an estimated  value
of $9,333,027 and $6,834,557 at December 31, 1995 and 1994, respectively.



<PAGE>


- --------------------------------------------------------------------------------
NOTE 6 - EMPLOYEE BENEFITS (Continued)
- --------------------------------------------------------------------------------

401(k) Profit Sharing Plan: The  Corporation  has 401(k) profit sharing plans.
The annual expense of the plans is based on 50% matching of voluntary employee
contributions of up to 6% of individual  compensation.  Employee contributions
are vested immediately and the Corporation's  matching contributions are fully
vested after six years.  The plans cover  substantially  all  employees of the
Corporation.  Contributions  and related  expense  attributable  to the plans,
included in salaries  and  employee  benefits,  were  approximately  $101,000,
$88,000 and $93,000 in 1995, 1994 and 1993, respectively.

Life Insurance Plans:  Life insurance plans are provided for certain executive
officers  on a  split-dollar  basis  and the  Corporation  is the owner of the
split-dollar  policies.  The officers are entitled to a sum equal to two times
either the employee's annual salary at death, if actively  employed,  or final
annual salary,  if retired,  less $50,000.  The Corporation is entitled to the
remainder  of the death  proceeds  less any  loans on the  policy  and  unpaid
interest  or cash  withdrawals  previously  incurred by the  Corporation.  The
employees have the right to designate a beneficiary(s)  to receive their share
of the proceeds  payable upon death.  The cash  surrender  value of these life
insurance  policies  was  approximately  $596,000 and $556,000 at December 31,
1995  and  1994,  respectively,  and  is  included  in  other  assets  in  the
consolidated balance sheets.

Supplemental  Retirement  Plan:  During 1994,  the  Corporation  established a
supplemental  retirement  plan for  selected  officers.  The  Corporation  has
purchased  insurance  contracts  on  the  lives  of  the  participants  in the
supplemental  retirement  plan and has named the  Corporation as  beneficiary.
While no direct contract exists between the  supplemental  retirement plan and
the life  insurance  contracts,  it is  management's  current  intent that the
proceeds  from the  insurance  contracts  will be used to help offset  earlier
payments made under the  supplemental  retirement  plan.  The  Corporation  is
recording an expense equal to the  projected  present value of the payment due
at  retirement  based on the  projected  remaining  years of service using the
projected unit credit method. The expense  attributable to the plan,  included
in salaries and employee benefits,  was approximately  $133,000 and $33,000 in
1995 and 1994,  respectively.  The cash surrender  value of the life insurance
was  approximately  $1,439,000  and  $1,383,000 at December 31, 1995 and 1994,
respectively,  and is included  in other  assets in the  consolidated  balance
sheets.


NOTE 7 - OTHER EXPENSES

     The  following  is an  analysis  of other  expenses  for the years  ended
December 31, 1995, 1994 and 1993:
                                          1995         1994         1993

   Amortization of intangible assets   $ 634,000   $  217,000   $  203,000
   Advertising expense                   259,938      233,548      161,511
   Professional fees                   1,097,162      853,241      732,151
   Insurance expense                     525,189      702,172      694,002
   Data processing fees                  436,983      323,942      333,079
   Printing, stationery and supplies     604,340      587,995      594,609
   Postage and delivery expense          304,362      241,441      214,213
   State, local and other taxes          630,829      586,899      504,698
   Other operating expenses            1,110,274    1,140,752      916,085
                                       ---------   ----------   ----------

     Total other expenses             $5,603,077   $4,886,990   $4,353,348
                                      ==========   ==========   ==========
<PAGE>


- --------------------------------------------------------------------------------
NOTE 8 - INCOME TAX EXPENSE
- --------------------------------------------------------------------------------

     Income tax expense consists of the following for the years ended December
31, 1995, 1994 and 1993:
                                         1995          1994         1993

     Current expense                   $2,915,522   $1,668,675   $1,801,099
     Deferred expense (benefit)          (788,418)     229,990       21,706
                                       ---------    ----------   ----------

        Total income tax expense       $2,127,104   $1,898,665   $1,822,805
                                       ==========   ==========   ==========

Tax expense  (benefit) on net securities gains (losses) were $1,058,  $(2,909)
and $(2,176) in 1995, 1994 and 1993, respectively.

The difference between the financial  statement income tax expense and amounts
computed by applying the  statutory  federal  income tax rate to income before
income tax expense is as follows for the years ended  December 31, 1995,  1994
and 1993:

                                         1995         1994         1993
                                         ----         ----         ----

   Statutory tax rate                     34%          34%          34%
   Income taxes computed at
     the statutory federal
     income tax rate                  $2,115,452   $1,975,073   $1,937,247
   Add (subtract) tax effect of:
      Tax-exempt income                 (184,312)    (149,706)    (178,144)
      Non-deductible expenses
        and other                        195,964       73,298       63,702
                                       ---------   ----------   ----------

         Total income tax expense     $2,127,104   $1,898,665   $1,822,805
                                       ==========  ==========   ==========

     The components of the net deferred tax asset recorded in the consolidated
balance sheets as of December 31, 1995 and 1994 are as follows:

                                                      1995          1994
                                                      ----          ----
   Deferred tax assets
      Provision for loan losses                    $1,061,264   $1,201,000
      Market to market adjustment                     162,050            -
      Net deferred loan fees                           65,309       89,149
      Net unrealized depreciation on
        securities available-for-sale                     -        602,851
      Accrued compensation and benefits               185,003      147,428
      AMT credit carryforward                               -      157,539
      Other                                           118,250      111,338
                                                   ----------   ----------
         Total deferred tax assets                 $1,591,876   $2,309,305
                                                   ==========   ==========
<PAGE>

- --------------------------------------------------------------------------------
NOTE 8 - INCOME TAX EXPENSE (Continued)
- --------------------------------------------------------------------------------
                                                       1995         1994
   Deferred tax liabilities                           ------       ------
      Net unrealized appreciation on
        securities available-for-sale               $(231,549)  $        -
      Depreciation                                   (139,185)     (44,544)
      Purchase accounting adjustments                (259,324)    (397,136)
      Market-to-market adjustment                           -     (815,304)
      Other                                            (4,566)     (49,087)
                                                    ----------  ----------
         Total deferred tax liabilities              (634,624)  (1,306,071)

   Valuation allowance                                      -            -
                                                    ---------   ----------

      Net deferred tax asset                        $ 957,252   $1,003,234
                                                    =========   ==========


NOTE 9 - RELATED PARTY TRANSACTIONS

Certain  directors,  executive  officers  and  principal  shareholders  of the
Corporation,  including associates of such persons, were loan customers during
1995.  A summary of the related  party loan  activity,  for loans  aggregating
$60,000 or more to any one related party, follows:

   Balance, January 1, 1995 ...................... $5,164,000
      New loans ..................................  7,601,000
      Repayments ................................. (9,111,000)
      Other changes ..............................   (142,000)
                                                   ----------

   Balance, December 31, 1995 .................... $3,512,000
                                                   ==========

Other changes include adjustments for loans applicable to one reporting period
that are excludable from the other reporting period.


NOTE 10 - COMMITMENTS, OFF-BALANCE-SHEET RISK AND CONTINGENCIES

The  Corporation is a party to financial  instruments  with  off-balance-sheet
risk  in the  normal  course  of  business  to  meet  financing  needs  of its
customers.  These  financial  instruments  include  commitments to make loans,
unused  lines of credit  and  standby  letters of  credit.  The  Corporation's
exposure to credit loss in the event of  nonperformance  by the other party to
the  financial  instruments  for  commitments  to make loans,  unused lines of
credit and standby letters of credit is represented by the contractual  amount
of those instruments.  The Corporation  follows the same credit policy to make
such commitments as it uses for on-balance-sheet items.


<PAGE>


- --------------------------------------------------------------------------------
NOTE 10 - COMMITMENTS, OFF-BALANCE-SHEET RISK AND CONTINGENCIES
- --------------------------------------------------------------------------------
  (Continued)

The Corporation has the following commitments outstanding at December 31:

                                                     1995          1994
                                                     ----          ----
   Fixed rate loan commitments and unused
     lines of credit                              $4,491,000   $ 4,733,000
   Variable rate loan commitments and unused
     lines of credit                              47,552,000    51,699,000
   Standby letters of credit                       2,945,000     2,674,000
                                                  ----------   -----------

                                                  $54,988,000  $59,106,000
                                                  ===========  ===========

Fixed rate loan commitments and unused lines of credit,  at December 31, 1995,
are at current rates, ranging primarily from 5.20% to 17.90% and are primarily
for terms of up to two years.

Variable  rate loan  commitments  and unused lines of credit,  at December 31,
1995,  are at current  rates,  ranging  primarily from 7.75% to 16.25% and are
primarily for terms of up to two years. The primary index used for adjustments
is the prime rate.

Since many  commitments  to make loans expire  without being used,  the amount
does  not  necessarily   represent  future  cash  commitments.   In  addition,
commitments to extend credit are  arrangements to lend to customers as long as
there is no violation of any condition  established in the contract. No losses
are anticipated as a result of these  transactions.  Collateral  obtained upon
exercise of the commitment is determined using management's  credit evaluation
of the borrower and may include real estate, business assets, consumer assets,
deposits and other items.

The Corporation was required to have  approximately  $3,475,000 and $3,438,000
of cash on hand or on deposit with the Federal Reserve Bank to meet regulatory
reserve  requirements  at  December  31,  1995 and 1994,  respectively.  These
balances do not earn interest.

<PAGE>
- --------------------------------------------------------------------------------
NOTE 11 - PARENT COMPANY FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------

Presented  below are condensed  financial  statements for the parent  company,
Rurban Financial Corp.:

                                          CONDENSED BALANCE SHEETS
                                         December 31, 1995 and 1994

                                                         1995         1994
                                                        ======       ======
ASSETS
Cash and cash equivalents                             $   844,790  $   515,691
Securities available-for-sale                             306,097            -
Investment in and advances to subsidiaries
   Banking subsidiaries                                36,520,419   33,541,947
   Non-banking subsidiaries                             2,238,418    2,014,227
                                                      -----------   ----------
      Total investment in subsidiaries                 38,758,837   35,556,174
Other assets                                              834,052       50,843
                                                      -----------   ----------

      Total assets                                    $40,743,776  $36,122,708
                                                      ===========  ===========

LIABILITIES
Other liabilities                                     $   665,285  $   448,121
                                                      -----------   ----------
      Total liabilities                                   665,285      448,121

COMMON STOCK SUBJECT TO REPURCHASE
   OBLIGATION IN ESOP                                   9,333,027    6,834,557

OTHER SHAREHOLDERS' EQUITY                             30,745,464   28,840,030
                                                      -----------   ----------

      Total liabilities and shareholders' equity      $40,743,776  $36,122,708
                                                      ===========  ===========

<PAGE>
- --------------------------------------------------------------------------------
NOTE 11 - PARENT COMPANY FINANCIAL STATEMENTS (Continued)
- --------------------------------------------------------------------------------

                        CONDENSED STATEMENTS OF INCOME
                 Years ended December 31, 1995, 1994 and 1993

                                              1995         1994        1993
                                              ----         ----        ----
Income
   Interest on securities-non-taxable      $    5,347   $        -   $       -
   Dividends from subsidiaries
      Banking subsidiaries                  3,015,000    3,900,000   1,125,000
      Non-banking subsidiaries                 75,000      300,000     325,000
                                           ----------   ----------   ---------
         Total                              3,090,000    4,200,000   1,450,000
   Noninterest income                          11,509            -           -
                                           ----------   ----------   ---------
      Total income                          3,106,856    4,200,000   1,450,000

Noninterest expense                           896,999      685,952     469,051
                                           ----------   ----------   ---------

Income before income tax benefit
  and equity in undistributed net
  income of subsidiaries                    2,209,857    3,514,048     980,949

Income tax benefit                            302,011      233,224     159,478
                                           ----------   ----------   ---------

Income before equity in undistributed
  net income                                2,511,868    3,747,272   1,140,427

Equity in undistributed net income
   Banking subsidiaries                     1,358,754       80,153   2,598,967
   Non-banking subsidiaries                   224,191       82,949     135,587
                                           ----------   ----------   ---------
      Total                                 1,582,945      163,102   2,734,554
                                           ----------   ----------   ---------

Net income                                 $4,094,813   $3,910,374  $3,874,981
                                           ==========   ==========  ==========

<PAGE>

- --------------------------------------------------------------------------------
NOTE 11 - PARENT COMPANY FINANCIAL STATEMENTS (Continued)
- --------------------------------------------------------------------------------

                                     CONDENSED STATEMENTS OF CASH FLOWS
                                Years ended December 31, 1995, 1994 and 1993

                                              1995        1994         1993
                                              ----        ----         ----
Cash flows from operating activities
   Dividends received from subsidiaries
      Banking subsidiaries                 $3,015,000   $3,900,000   $1,125,000
      Non-banking subsidiaries                 75,000      300,000      325,000
                                           ----------   ----------    ---------
         Total                              3,090,000    4,200,000    1,450,000
   Cash paid to suppliers and employees      (681,050)    (744,321)    (262,616)
   Income tax refunds                         253,486      269,455       95,540
                                           ----------   ----------    ---------
      Net cash from operating activities    2,662,436    3,725,134    1,282,924

Cash flows from investing activities
   Investment in banking subsidiary              -      (2,378,046)       -
   Purchase of securities available-
     for-sale                                (306,097)      -             -
   Cash paid for life insurance premiums     (716,613)      -             -
                                           ----------   ----------    ---------
      Net cash from investing activities   (1,022,710)  (2,378,046)       -

Cash flows from financing activities
   Cash dividends paid                     (1,310,627)  (1,264,128)  (1,221,980)
                                           ----------   ----------   ----------
      Net cash from financing activities   (1,310,627)  (1,264,128)  (1,221,980)
                                           ----------   ----------   ----------

Net change in cash and cash equivalents       329,099       82,960       60,944

Cash and cash equivalents at beginning
  of year                                     515,691      432,731      371,787
                                           ----------   ----------  ------------

Cash and cash equivalents at end of year   $  844,790   $  515,691   $  432,731
                                           ==========   ==========   ==========


<PAGE>
- --------------------------------------------------------------------------------
NOTE 11 - PARENT COMPANY FINANCIAL STATEMENTS (Continued)
- --------------------------------------------------------------------------------

                               CONDENSED  STATEMENTS OF CASH FLOWS (CONTINUED)
                                Years ended December 31, 1995, 1994 and 1993

                                             1995         1994         1993
                                             ----         ----         ----
Reconciliation of net income to net cash
  from operating activities
    Net income                            $4,094,813   $3,910,374   $3,874,981
    Adjustments to reconcile net
      income to net cash from operating
      activities
      Equity in undistributed net
        income of subsidiaries
         Banking subsidiaries             (1,358,754)     (80,153)  (2,598,967)
         Non-banking subsidiaries           (224,191)     (82,949)    (135,587)
      Change in income taxes receivable      (48,525)      36,231      (63,938)
      Change in other assets                 (18,071)           -            -
      Change in other liabilities            217,164      (58,369)    (206,435)
                                          ----------   ----------   ----------
         Net cash from operating
           activities                     $2,662,436   $3,725,134   $1,282,924
                                          ==========   ==========   ==========

Supplemental disclosures of cash
  flow information

    Non-cash increases related to Citizens
      Bank acquisition (Note 1):
      Common stock                        $     -      $  387,500   $    -
      Additional paid-in capital                -       2,518,373   $    -


<PAGE>

- --------------------------------------------------------------------------------
NOTE 12 - FAIR VALUES OF FINANCIAL INSTRUMENTS
- --------------------------------------------------------------------------------

The following  table shows the estimated fair values and the related  carrying
values of the  Corporation's  financial  instruments  at December 31, 1995 and
1994. Items which are not financial instruments are not included.
<TABLE>

                                         1 9 9 5                    1 9 9 4
                                ------------------------   ----------------
                                 Carrying       Estimated      Carrying      Estimated
                                   Value       Fair Value        Value      Fair Value

<S>                            <C>            <C>            <C>            <C>        
Cash and cash equivalents      $28,379,656    $28,380,000    $25,178,171    $25,178,000
Interest-earning deposits
  in other financial 
  institutions                     180,000        180,000        346,324        346,000
Securities available-for-sale   90,329,866     90,330,000     59,811,855     59,812,000
Securities held-to-maturity          -             -          10,370,912     10,346,000
Loans, net of allowance for 
  loan losses (including
  loans held for sale)         276,044,137    274,564,000    280,336,409    272,979,000
Demand and savings deposits   (179,133,751)  (179,134,000)  (177,421,585)  (177,422,000)
Time deposits                 (188,662,787)  (190,368,000)  (177,224,051)  (177,341,000)

</TABLE>

For purposes of the above  disclosures of estimated fair value,  the following
assumptions  were used as of December 31, 1995 and 1994.  The  estimated  fair
value for cash and cash  equivalents  is considered to  approximate  cost. The
estimated  fair  value  for  interest-earning   deposits  in  other  financial
institutions, securities available-for-sale and securities held-to-maturity is
based on quoted market values for the individual  securities or for equivalent
securities.  The  estimated  fair value for loans is based on estimates of the
difference in interest  rates the  Corporation  would charge the borrowers for
similar such loans with similar maturities made at December 31, 1995 and 1994,
applied for an  estimated  time period until the loan is assumed to reprice or
be paid. The estimated fair value for demand and savings  deposits is based on
their carrying  value.  The estimated fair value for time deposits is based on
estimates of the rate the  Corporation  would pay on such deposits at December
31, 1995 and 1994,  applied for the time period until maturity.  The estimated
fair  value  for  other  financial  instruments  and  off-balance-sheet   loan
commitments  approximate  cost at  December  31,  1995  and  1994  and are not
considered significant to this presentation.

While these estimates of fair value are based on management's  judgment of the
most appropriate  factors,  there is no assurance that were the Corporation to
have disposed of such items at December 31, 1995 and 1994,  the estimated fair
values would  necessarily have been achieved at that date, since market values
may differ  depending on various  circumstances.  The estimated fair values at
December 31, 1995 and 1994 should not  necessarily  be  considered to apply at
subsequent dates.

<PAGE>
- --------------------------------------------------------------------------------
NOTE 12 - FAIR VALUES OF FINANCIAL INSTRUMENTS (Continued)
- --------------------------------------------------------------------------------

In addition,  other assets and  liabilities  of the  Corporation  that are not
defined as financial  instruments  are not included in the above  disclosures,
such as premises and equipment.  Also, non-financial instruments typically not
recognized in the financial statements nevertheless may have value but are not
included in the above  disclosures.  These  include,  among other  items,  the
estimated  earnings power of core deposit accounts,  the earnings potential of
loan  servicing  rights,  the  earnings  potential of State Bank's and Peoples
Bank's  trust  departments,  the trained  work force,  customer  goodwill  and
similar items.


NOTE 13 - IMPACT OF NEW ACCOUNTING STANDARDS

Several new accounting  standards have been issued by the FASB that will apply
in 1996. SFAS No. 121, "Accounting for the Impairment of Long-Lived Assets and
for  Long-Lived  Assets To Be  Disposed  Of",  requires a review of  long-term
assets for impairment of recorded value and resulting write-downs if the value
is  impaired.  SFAS No.  122,  "Accounting  for  Mortgage  Servicing  Rights",
requires  recognition  of an asset  when  servicing  rights  are  retained  on
in-house  originated loans that are sold. These statements are not expected to
have a material effect on the Corporation's consolidated financial position or
results of operations.


NOTE 14 - SUPPLEMENTAL CASH FLOW DISCLOSURES

On October 3, 1994,  Rurban Financial Corp.  purchased all of the common stock
of Citizens Bank for  $2,378,046 in cash and issued 155,000 common shares at a
market  value of  $18.75  per  share.  In  conjunction  with the  acquisition,
liabilities were assumed as follows:

      Fair value of assets acquired ............................. $58,707,000
      Cash paid .................................................  (2,378,046)
      Common stock issued .......................................  (2,905,873)
                                                                  -----------

         Liabilities assumed .................................... $53,423,081

<PAGE>


NOTE 14 - SUPPLEMENTAL CASH FLOW DISCLOSURES (Continued)

Additionally, transfers of securities were as follows:

1995   Transfer from securities held-to-maturity to
         securities available-for-sale ........................... $10,854,066
1994   Transfer from investment securities and securities
         held for sale to:
           Securities available-for-sale .........................  52,386,249
           Securities held-to-maturity ...........................   6,527,912
1993   Transfer from investment securities to securities
         held for sale ...........................................   1,533,028


<PAGE>
                            RURBAN FINANCIAL CORP.

                          ANNUAL REPORT ON FORM 10-K
                    FOR FISCAL YEAR ENDED DECEMBER 31, 1995


                               INDEX TO EXHIBITS


Exhibit No.       Description                       Page No.
- -----------       -------------------------         --------------
  3(a)            Amended Articles of               Incorporated herein by
                  Registrant, as amended            reference to Registrant's
                                                    Annual Report on Form
                                                    10-K for the fiscal year
                                                    ended December 31, 1989
                                                    (File No. 0-13507)
                                                    [Exhibit 3(a)(i)].

  3(b)            Certificate of Amendment to       Incorporated herein by
                  the Amended Articles of           reference to Registrant's
                  Rurban Financial Corp.            Annual Report on Form
                                                    10-K for the fiscal year
                                                    ended December 31, 1993
                                                    (File No. 0-13507)
                                                    [Exhibit 3(b)].

  3(c)            Regulations of Registrant, as     Incorporated herein by
                  amended                           reference to Registrant's
                                                    Annual Report on Form 10-K
                                                    for the fiscal  year ended
                                                    December 31, 1986 (File
                                                    No. 0-13507) [Exhibit 3(b)].

 10(a)            Employees' Stock Ownership        Incorporated herein by
                  Plan of Rurban Financial Corp.    reference to Registrant's
                                                    Annual Report on Form
                                                    10-K for the fiscal year
                                                    ended December 31, 1993
                                                    (File No. 0-13507)
                                                    [Exhibit 10(b)].

 10(b)           First Amendment to Employees'      Incorporated herein by
                 Stock Ownership Plan of Rurban     reference to Registrant's
                 Financial Corp., dated June 14,    Annual Report on Form 10-K
                 1993 and made to be effective      for the fiscal year ended
                 as of January 1, 1993              December 31, 1993 (File No.
                                                    0-13507) [Exhibit 10(b)].

 10(c)           Second Amendment to Employees'     Incorporated herein by
                 Stock Ownership Plan of Rurban     reference to Registrant's
                 Financial Corp., dated             Annual Report on Form 10-K
                 March 14, 1994 and made to be      for the fiscal year ended
                 effective as of January 1, 1993    December 31, 1993 (File
                                                    No. 0-13507) [Exhibit
                                                    10(c)].

 10(d)           Third Amendment to Employees'      Incorporated herein by
                 Stock Ownership Plan of Rurban     reference to Registrant's
                 Financial Corp., dated             Annual Report on Form 10-K
                 March 13, 1995                     for the fiscal year ended
                                                    December 31, 1994 (File
                                                    No. 0-13507) [Exhibit
                                                    10(d)].

 10(e)            Fourth Amendment to               Pages 79 through 81.
                  Employees' Stock Ownership
                  Plan of Rurban Financial
                  Corp., dated June 10, 1995
                  and made to be effective as
                  of January 1, 1995

 10(f)            The Rurban Financial Corp.        Incorporated herein by
                  Savings Plan and Trust            reference to Registrant's
                                                    Annual Report on Form
                                                    10-K for the fiscal year
                                                    ended December 31, 1990
                                                    (File No. 0-13507)
                                                    [Exhibit 10(g)].

 10(g)            First Amendment to The Rurban     Incorporated herein by
                  Financial Corp. Savings Plan      reference to Registrant's
                  and Trust, dated December 10,     Annual Report on
                  1990 and effective January 1,     Form 10-K for the fiscal
                  1990                              year ended December
                                                    31, 1990 (File
                                                    No. 0-13507)
                                                    [Exhibit 10(g)].

10(h)             Second Amendment to The           Incorporated herein by
                  Rurban Financial Corp.            reference to Registrant's
                  Savings Plan and Trust, dated     Annual Report on Form
                  March 11, 1991, effective         10-K for the fiscal year
                  February 1, 1991                  ended December 31, 1992
                                                    (File No. 0-13507)
                                                    [Exhibit 10(d)].

 10(i)            Third Amendment to The Rurban     Incorporated herein by
                  Financial Corp. Savings Plan      reference to Registrant's
                  and Trust, dated June 11, 1991    Annual Report on Form
                                                    10-K for the fiscal year
                                                    ended December 31, 1992
                                                    (File No. 0-13507)
                                                    [Exhibit 10(e)].

 10(j)            Fourth Amendment to The           Incorporated herein by
                  Rurban Financial Corp.            reference to Registrant's
                  Savings Plan and Trust, dated     Annual Report on Form
                  July 14, 1992, effective          10-K for the fiscal year
                  May 1, 1992                       ended December 31, 1992
                                                    (File No. 0-13507)
                                                    [Exhibit 10(f)].

 10(k)            Fifth Amendment to The Rurban     Incorporated herein by
                  Financial Corp. Savings Plan      reference to Registrant's
                  and Trust, dated March 14,        Annual Report on Form
                  1994                              10-K for the fiscal year
                                                    ended December 31, 1993
                                                    (File No. 0-13507)
                                                    [Exhibit 10(i)].

 10(l)            Sixth Amendment to The Rurban     Pages 82 through 84.
                  Financial Corp. Savings Plan
                  and Trust dated May 1, 1995

 10(m)            Summary of Incentive              Incorporated herein by
                  Compensation Plan of State        reference to Registrant's
                  Bank                              Annual Report on Form
                                                    10-K for the fiscal year
                                                    ended December 31, 1993
                                                    (File No. 0-13507)
                                                    [Exhibit 10(j)].

 10(n)            Summary of Bonus Program          Incorporated herein by
                  adopted by the Trust              reference to Registrant's
                  Department of State Bank for      Annual Report on Form
                  the benefit of Robert W.          10-K for the fiscal year
                  Constien in his capacity as       ended December 31, 1991
                  Manager of the Trust              (File No. 0-13507)
                  Department                        [Exhibit 10(e)].

 10(o)            Summary of Bonus Program for      Incorporated herein by
                  the Trust Department of State     reference to Registrant's
                  Bank                              Annual Report on Form
                                                    10-K for the fiscal year
                                                    ended December 31, 1992
                                                    (File No. 0-13507

                                                    [Exhibit 10(i)].
 10(p)            Summary of Sales Bonus            Incorporated herein by
                  Program of State Bank             reference to Registrant's
                                                    Annual Report on Form
                                                    10-K for the fiscal year
                                                    ended December 31, 1994
                                                    (File No. 0-13507)
                                                    [Exhibit 10(n)].

 10(q)            Summary of Rurban Financial       Incorporated herein by
                  Corp. Bonus Plan                  reference to Registrant's
                                                    Annual Report on Form
                                                    10-K for the fiscal year
                                                    ended December 31, 1993
                                                    (File No. 0-13507)
                                                    [Exhibit 10(q)].

 10(r)            Executive Salary Continuation     Incorporated herein by
                  Agreement, dated December 15,     reference to Registrant's
                  1994, between Rurban              Annual Report on Form
                  Financial Corp. and Richard       10-K for the fiscal year
                  C. Burrows                        ended December 31, 1994
                                                    (File No. 0-13507)
                                                    [Exhibit 10(p)].

 10(s)            Executive Salary Continuation    Pages 85 through 93.
                  Agreement, dated October 11,
                  1995, between Rurban Financial
                  Corp. and Thomas C. Williams;
                  and Schedule A to
                  Exhibit 10(s) identifying
                  other identical Executive
                  Salary Continuation Agreements
                  between executive officers of
                  Rurban Financial Corp. and
                  Rurban Financial Corp.

 10(t)            Description of Split-Dollar      Page 94
                  Insurance Policies Maintained
                  for Certain Executive Officers
                  of Rurban Financial Corp.

 11               Statement re Computation of       Page 57 [included in
                  Per Share Earnings                Note 1 of the Notes to
                                                    the Consolidated
                                                    Financial Statements of
                                                    Registrant in the
                                                    financial statements
                                                    portion of this Annual
                                                    Report on Form 10-K].

 21               Subsidiaries of Registrant        Incorporated herein by
                                                    reference to Registrant's
                                                    Annual Report on Form
                                                    10-K for the fiscal year
                                                    ended December 31, 1994
                                                    (File No. 0-13507)
                                                    [Exhibit 21].

 24               Powers of Attorney                Pages 95 through 105.

 27               Financial Data Schedule           Pages 106 through 108.




                                 Exhibit 10(e)


                        FOURTH AMENDMENT TO EMPLOYEES'
                            STOCK OWNERSHIP PLAN OF
                            RURBAN FINANCIAL CORP.
                         DATED JUNE 10, 1995 AND MADE
                             TO BE EFFECTIVE AS OF
                                JANUARY 1, 1995


<PAGE>


                             FOURTH AMENDMENT TO
                      EMPLOYEES' STOCK OWNERSHIP PLAN OF
                            RURBAN FINANCIAL CORP.


This FOURTH AMENDMENT,  made and executed at Defiance, Ohio on the 10th day of
June,  1995,  but to be  effective  as of January 1, 1995 by RURBAN  FINANCIAL
CORP.,  a corporation  organized  and existing  under the laws of the State of
Ohio (hereinafter referred to as "Employer").


                                 WITNESSETH:


WHEREAS,  the Employer  established  the  "Employees'  Stock Ownership Plan of
Rurban Financial Corp."  (hereinafter  referred to as the "Plan") which became
effective January 1, 1985; and

WHEREAS, the Plan was amended and restated in its entirety,  effective January
1, 1987, to comply with the provisions of the Tax Reform Act of 1986 and other
legislation and regulations; and

WHEREAS, it is now desired to amend said Plan in certain respects.

NOW, THEREFORE, the Plan shall be amended as follows:

1.    Section 6.02(c) shall be amended in its entirety as follows:

      "(c)  In the  event  that  a  distribution  specified  under
            Section  6.02(a)  is made  before  the end of the Plan
            Year, the greater of the most recent  valuation or the
            market  price of the  established  buyers will be used
            for  determining  the cash  out  value  of  shares  of
            Employer  stock.  For  purposes  of this  Article  VI,
            established  buyer means the market makers.  (McDonald
            &  Company,  Kemper  Securities,  Inc.  and  The  Ohio
            Company)"

2.    Section 6.03(b) shall be amended by the addition of the following:

            "Distributions  elected in cash  shall be based on the  greater of
            the fair market value established by the independent  appraiser or
            the purchase price of the established buyer."

All other provisions of said Plan shall remain in full force and effect.



<PAGE>


IN WITNESS WHEREOF, the Employer has executed this Fourth Amendment on the day
and year first above written.

                                    RURBAN FINANCIAL CORP.



 /s/ Leona M. Bailey                      By:  /s/ Thomas C. Williams
 ---------------------------                   ---------------------------------
 Witness                                       President





                                Exhibit 10(l)


                              SIXTH AMENDMENT TO
                          THE RURBAN FINANCIAL CORP.
                            SAVINGS PLAN AND TRUST
                              DATED MAY 1, 1995



<PAGE>


                              SIXTH AMENDMENT TO
                          THE RURBAN FINANCIAL CORP.
                            SAVINGS PLAN AND TRUST

This SIXTH AMENDMENT was made and executed at Defiance, Ohio on the 1st day of
May, 1995, by and between RURBAN FINANCIAL CORP., a corporation  organized and
existing  under  the laws of the  state of Ohio  (hereinafter  referred  to as
"Employer"), and THE STATE BANK AND TRUST COMPANY, (hereinafter referred to as
"Trustee").

                                 WITNESSETH:

WHEREAS,  the Employer  established "The Rurban  Financial Corp.  Savings Plan
and Trust"  (hereinafter  referred to as the "Plan")  which  became  effective
July 1, 1988; and

WHEREAS, the Employer desires to amend said Plan in certain respects.

NOW, THEREFORE, the parties hereto agree as follows:

Effective January 1, 1994, the fifth paragraph of Section 3.06, Limitations on
Annual Additions, shall be amended in its entirety as follows:

"If,  as  a  result  of a  reasonable  error  in  estimating  a  Participant's
Compensation,  a  reasonable  error in  determining  the  amount  of  elective
deferrals (within the meaning of Code Section 402(g)(3)) that may be made with
respect to any  Participant  under the limits of this Section,  or other facts
and circumstances to which Regulation  1.415-6(b)(6) shall be applicable,  the
"annual  additions" under this Plan would cause the maximum "annual additions"
to be exceeded for any Participant, the Administrator shall (1) distribute any
elective deferrals (within the meaning of Code Section 402(g)(3) or return any
voluntary  Employee  contributions  credited  for the  "limitation  year"  and
distribute gains attributable to those elective deferrals and contributions to
the  extent  that  the  return  would  reduce  the  "excess   amount"  in  the
Participant's accounts (2) hold any "excess amount" remaining after the return
of any elective  deferrals or voluntary  Employee  contributions in a "Section
415 suspense  account"  (3) use the Section 415 suspense  account "in the next
limitation  year" (and succeeding  "limitation  years" if necessary) to reduce
Employer  contributions for that Participant if that Participant is covered by
the Plan as of the end of the "limitation  year," or if the Participant is not
so covered,  allocate and reallocate the "Section 415 suspense account" in the
next "limitation year" (and succeeding "limitation years" if necessary) to all
Participants in the Plan before any Employer or Employee  contributions  which
would constitute  "annual additions" are made to the Plan for such "limitation
year" (4) reduce Employer contributions to the Plan for such "limitation year"
by the amount of the "Section 415 suspense account"  allocated and reallocated
during such "limitation year."

All other provisions of said Plan shall remain in full force and effect.



<PAGE>


IN  WITNESS  WHEREOF,  the  Employer  and  Trustee  have  executed  this Sixth
Amendment on the day and year first above written.

                                    RURBAN FINANCIAL CORP.



 /s/ Keeta J. Diller                      By:  /s/ R. C. Burrows
 ------------------------------                ---------------------------------
 Witness

 /s/ Michele R. Greear                    By:  /s/ David E. Manz
 ------------------------------                ---------------------------------
 Witness


                                    THE STATE BANK
                                    AND TRUST COMPANY


 /s/ Daun Nordon                          By:  /s/ Robert W. Constien
 ------------------------------                ---------------------------------
 Witness

 /s/ Beulah Zimmerman                     By:  /s/ Christine R. Hubbard
 ------------------------------                ---------------------------------
 Witness





                                                                 Exhibit 10(s)


                   EXECUTIVE SALARY CONTINUATION AGREEMENT


THE  AGREEMENT,  made and entered  into this 11th day of October,  1995 by and
between Rurban Financial Corp. (hereinafter called "Rurban"), and Thomas C.
Williams (hereinafter called the "Executive").


                                 WITNESSETH:


      WHEREAS,  the Executive has been and continues to be a valued  Executive
of Rurban, and is now serving Rurban as its President; and,

      WHEREAS,  it is the  consensus  of  the  Board  of  Directors  that  the
Executive's  services to Rurban in the past have been of exceptional merit and
have  constituted an invaluable  contribution to the general welfare of Rurban
and in bringing  it to its present  status of  operating  efficiency,  and its
present position in its field of activity; and,

      WHEREAS,  the experience of the Executive,  his knowledge of the affairs
of Rurban,  his  reputation  and contacts in the industry are so valuable that
assurance of his  continued  services is essential  for the future  growth and
profits of Rurban and it is in the best interest of Rurban to arrange terms of
continued  employment  for  the  Executive  so as  to  reasonably  assure  his
remaining  in  Rurban's  employment  during his  lifetime  or until the age of
retirement; and,

      WHEREAS,  it is the desire of Rurban  that his  services  be retained as
herein provided; and,

      WHEREAS,  the  Executive  is willing to continue in the employ of Rurban
provided Rurban agrees to pay to him or his beneficiaries  certain benefits in
accordance with the terms and conditions hereinafter set forth:

      ACCORDINGLY,  it is the desire of Rurban and the Executive to enter into
this agreement  under which Rurban will agree to make certain  payments to the
Executive at retirement or his beneficiary in the event of his premature death
while employed by Rurban; and,

      FURTHERMORE,  it is the intent of the parties hereto that this agreement
be  considered  an  unfunded  arrangement   maintained  primarily  to  provide
supplemental  benefits  for the  Executive,  as a member of a select  group of
management or highly  compensated  employees of Rurban for the purposes of the
Employee Retirement Income Security Act of 1974, (E.R.I.S.A.):


<PAGE>


- ------------------------------------------------------------------------------
                                      2
- ------------------------------------------------------------------------------

      NOW,  THEREFORE,  in consideration of services performed in the past and
to be performed in the future as well as of the mutual  promises and covenants
herein contained it is agreed as follows:

EMPLOYMENT

      1.    Rurban  agrees to employ the  Executive in such capacity as Rurban
            may from time to time  determine.  The Executive  will continue in
            the  employ of Rurban in such  capacity  and with such  duties and
            responsibilities  as  may  be  assigned  to  him,  and  with  such
            compensation  as may be determined  from time to time by the Board
            of  Directors  of  Rurban.   Active   employment   shall   include
            temporary  disability not to exceed six months and other "leave of
            absences" specifically granted by the Board of Directors.


FRINGE BENEFITS

      2.    The salary  continuation  benefits  provided by this agreement are
            granted by Rurban as a fringe benefit to the Executive and are not
            part of any salary  reduction plan or an  arrangement  deferring a
            bonus or a salary  increase.  The  Executive has no option to take
            any current payment or bonus in lieu of these salary  continuation
            benefits except as set forth hereinafter.


RETIREMENT DATE

      3.    If Executive  remains in the continuous employ of Rurban, he shall
            retire from active  employment  with Rurban on the first  December
            31st after his sixty-fifth  (65th)  birthday,  unless by action of
            the Board of Directors  his period of active  employment  shall be
            shortened or extended.


RETIREMENT BENEFIT AND POST-RETIREMENT DEATH BENEFIT

      4.    Upon said  retirement,  Rurban,  commencing  with the first day of
            the  month  following  the  date of  such  retirement,  shall  pay
            Executive an annual  benefit  equal to 15% of  Executive's  salary
            immediately prior to his retirement in equal monthly  installments
            (of  1/12 of the  annual  benefit)  for a  period  of one  hundred
            eighty  (180)  months,  provided  that if less  than  one  hundred
            eighty  (180) such  monthly  payments  have been made prior to the
            death  of  the  Executive,  Rurban  shall  continue  such  monthly
            payments to whomever the Executive  shall designate in writing and
            filed with  Rurban,  until the full number of one  hundred  eighty
            (180)  monthly  payments  have been  made.  In the  absence of any
            effective  designation of beneficiary,  any such amounts  becoming
            due and payable upon the death of the  Executive  shall be payable
            to the duly qualified executor or administrator of his estate.


DEATH BENEFIT PRIOR TO RETIREMENT

      5.    In the event the Executive  should die while actively  employed by
            Rurban at any time after the date of this  Agreement  but prior to
            his  attaining  the age of  sixty-five  (65)  years (or such later
            date as may be agreed  upon),  Rurban  will pay an annual  benefit
            equal to 15% of Executive's  salary immediately prior to his death
            in equal  monthly  installments  (each equal to 1/12 of the annual
            benefit)  for a period of one hundred  eighty (180) months to such
            individual or individuals as the Executive may have  designated in
            writing and filed with  Rurban.  The said monthly  payments  shall
            begin the first day of the first month  following the month of the
            decease  of  the  Executive.  In  the  absence  of  any  effective
            designation  of  beneficiary,  any such  amounts  becoming due and
            payable  upon the death of the  Executive  shall be payable to the
            duly qualified executor or administrator of his estate.


BENEFIT ACCOUNTING

      6.    Rurban  shall  account  for  this  benefit  using  the  regulatory
            accounting  principles  of  Rurban's  primary  federal  regulator.
            Rurban shall establish an accrued liability retirement account for
            the Executive into which appropriate reserves shall be accrued.


VESTING

      7.    Executive  benefits are payable in  accordance  with the following
            vesting schedule:

                         5% of base  salary at age 55 to 60
                         10% of base salary at age 60 to 65
                         15% of base salary at age 65 and over

            In the event of employee  termination  prior to attaining  age 65,
            the payment  will be based on the base  salary paid on  employee's
            date of termination.


OTHER TERMINATION OF EMPLOYMENT

      8.    In the event that the employment of the Executive  shall terminate
            prior  to  retirement  from  active  employment,  as  provided  in
            Paragraph 3, by his voluntary  action,  then this Agreement  shall
            terminate  upon the date of such  termination  of  employment  and
            Rurban shall pay to the  Executive as  severance  compensation  an
            amount  of  money  as  of  attained  age  under  vesting  schedule
            Paragraph 7 and subject to payment  schedule  in  Paragraph  4. An
            employee  discharged by Rurban for cause will have no compensation
            payable under this agreement.

            In the  event  the  Executive's  death  should  occur  after  such
            severance  but prior to the  completion  of the  monthly  payments
            provided for in this Paragraph 8, the remaining installments shall
            be paid to such  individual  or  individuals  as the Executive may
            have designated in writing,  and filed with Rurban. In the absence
            of any  effective  designation  of  beneficiary,  any such amounts
            shall be payable to the duly qualified  executor or  administrator
            of his estate.


PARTICIPATION IN OTHER PLANS

      9.    The  benefits   provided   hereunder   shall  be  in  addition  to
            Executive's annual salary as determined by the Board of Directors,
            and shall not affect the right of Executive to  participate in any
            current or future Rurban retirement Plan, group insurance,  bonus,
            or in any supplemental  compensation arrangement which constitutes
            a part of Rurban's regular compensation structure.


NON-COMPETE

      10.   The payment of benefits under this  Agreement  shall be contingent
            upon the  Executive  not engaging in any activity that directly or
            indirectly  competes with Rurban's  interests,  within 25 miles of
            any  office  of  Rurban  existing  at the  time  of  Executive  's
            retirement or termination.

      11.   In the event  there is a change in  control  of the  ownership  of
            Rurban,  Executive  shall  become 100% vested for the  purposes of
            Paragraph 7 hereinabove, as if the Executive had attained age 65.

      12.   If after  the  retirement  of  Executive,  the  capital  of Rurban
            should  fall below the minimum  required  by  Rurban's  regulatory
            authority  and/or  Rurban  fails to make a  profit  in any two (2)
            successive  years,  Executive  may,  at his  option,  demand  that
            Rurban  pay  him the  balance  of the  benefits  due him in a lump
            sum. The balance due  Executive  shall be an amount of money equal
            to his  accrued  liability  benefit  account  balance and shall be
            paid to him by Rurban within thirty (30) days of his demand.


ALIENABILITY

      13.   It is agreed that neither  Executive,  nor his/her spouse, nor any
            other  designee,  shall have any right to commute,  sell,  assign,
            transfer or  otherwise  convey the right to receive  any  payments
            hereunder,  which  payments  and the right  thereto are  expressly
            declared to be non-assignable and non-transferable.


RESTRICTIONS ON FUNDING

      14.   Rurban shall have no obligation to set aside,  earmark, or entrust
            any fund or money  with  which to pay its  obligation  under  this
            Agreement.   Rurban  reserves  the  absolute  right  at  its  sole
            discretion  to  either  fund the  obligations  undertaken  by this
            Agreement or to refrain from  funding the same and  determine  the
            extent, nature, and method of such funding.


GENERAL ASSETS OF RURBAN

      15.   The  rights  of the  Executive  under  this  Agreement  and of any
            beneficiary  of  the  Executive   shall  be  solely  those  of  an
            unsecured   creditor  of  Rurban.   If  Rurban  shall  acquire  an
            insurance  policy  or any  other  asset  in  connection  with  the
            liabilities  assumed by it hereunder,  it is expressly  understood
            and  agreed  that  neither   Executive  nor  any   beneficiary  of
            Executive  shall have any right with respect to, or claim against,
            such  policy or other  asset.  Such  policy or asset  shall not be
            deemed to be held under any trust for the benefit of  Executive or
            his beneficiaries or to be held in any way as collateral  security
            for  the  fulfilling  of the  obligations  of  Rurban  under  this
            Agreement.  It  shall  be,  and  remain,  a  general,   unpledged,
            unrestricted   asset  of  Rurban  and  Executive  or  any  of  his
            beneficiaries  shall  not have a  greater  claim to the  insurance
            policy or other  assets,  or any interest in either of them,  than
            any other general creditor of Rurban.


REORGANIZATION

      17.   Rurban agrees that if Rurban merges or consolidates with any other
            company or organization,  or permits its business activities to be
            taken  over by any  other  organization,  or ceases  its  business
            activities  or terminates  its  existence,  the Executive  will be
            considered  to be  vested  in one  hundred  percent  (100%) of the
            retirement  benefit  to be  paid  to  the  Executive  pursuant  to
            Paragraph 4 above.


AMENDMENT

      18.   This  Agreement  may be  amended  in whole or in part from time to
            time by the Employer,  but only in writing.  Amendments are not to
            effect Executive benefits for those who are in pay-out or eligible
            for payments under the vesting schedule.


NOT A CONTRACT OR EMPLOYMENT

      19.   This  Agreement  shall not be deemed to  constitute  a contract of
            employment  between the parties  hereto,  nor shall any  provision
            hereof restrict the right of Rurban to discharge the Executive, or
            restrict the right of the Executive to terminate his employment.


HEADINGS

      20.   Headings  and  subheadings  of this  Agreement  are  inserted  for
            reference and  convenience  only and shall not be deemed a part of
            this agreement.


APPLICABLE LAW

      21.   The  validity  and  interpretation  of  this  Agreement  shall  be
            governed by the laws of the State of Ohio.


EFFECTIVE DATE

      22.   The effective date of this agreement shall be October 11, 1995.


CLAIMS PROCEDURE

      23.   In the event that  benefits  under this  Agreement are not paid to
            the Executive (or his  beneficiary in the case of the Executive' s
            death),  and such person feels  entitled to receive  them, a claim
            shall be made in writing to the Plan  Administrator  within  sixty
            (60) days from the date  payments  are not made.  Such claim shall
            be  reviewed  by the Plan  Administrator  and  Rurban'  s Board of
            Directors.  If the claim is denied,  in full or in part,  the Plan
            Administrator  shall  provide a written  notice within ninety (90)
            days  setting  forth the  specific  reasons for  denial,  specific
            reference  to the  provisions  of this  Agreement  upon  which the
            denial is based.


NAMED FIDUCIARY AND PLAN ADMINISTRATOR

      24.   For purposes of  implementing  this claims  procedure (but not for
            any  other  purpose),   the  chief  executive  officer  of  Rurban
            Financial  Corp., is hereby  designated as the Named Fiduciary and
            Plan  Administrator  of Plan  Agreement.  As Named  Fiduciary  and
            Plan   Administrator,   said  chief  executive  officer  shall  be
            responsible for the management,  control,  and  administration  of
            the agreement as established  herein.  Rurban may delegate certain
            aspects of the  management  or operation  responsibilities  of the
            Plan  including the  employment of advisors and the  delegation of
            ministerial duties to qualified individuals.



IN  WITNESS  WHEREOF,  Rurban has caused  this  Agreement  to be signed in its
corporate name by its duly authorized officer,  and attested by its Secretary,
and  Executive  hereunto set his hand and seal,  all on the day and year first
above written.



ATTEST:
                                    RURBAN FINANCIAL CORP.


 /s/ Keeta J. Diller                  By /s/ David E. Manz
 ____________________________            _________________________________[SEAL]
 Witness                                 David E. Manz, Executive Vice President


 /s/ Gregory W. Klear                 By /s/ Thomas C. Williams
 ____________________________            _________________________________
 Witness                                 Executive


 /s/ Leslie A. Frysinger
 ____________________________
 Witness


<PAGE>


                          DESIGNATION OF BENEFICIARY


      Pursuant to the terms of a Salary Continuation Agreement,  dated October
11, 1995 between myself and Rurban  Financial  Corp.,  I hereby  designate the
following  beneficiary(ies)  to receive  payments  which may be due under such
Agreement after my death:


Primary Beneficiary:

Marilyn L. Williams            1108 E. River Dr., Defiance        Spouse
________________________       ____________________________       ______________
Name                           Address                            Relationship


Secondary Beneficiary(ies):

The Thomas C. Williams Trust   c/o The State Bank & Trust Co.
________________________       ____________________________       ______________
Name                           Address                            Relationship

________________________       ____________________________       ______________
Name                           Address                            Relationship


      The Primary Beneficiary named above shall be the designated  beneficiary
referred  to in  Paragraphs  Four and Five of said  Agreement  if he or she is
living at the time a death benefit payment thereunder becomes due and payable,
and the Secondary Beneficiary named above shall be the designated  beneficiary
referred to in Paragraphs Four and Five of said Agreement only if he or she is
living at the time a death  benefit  payment  becomes  payable and the Primary
Beneficiary is not then living.

      This  designation  hereby revokes any prior  designation  which may have
been in effect.

                                          Date:  October 11, 1995
                                                 -------------------------

 /s/ Leona M. Bailey                      /s/ Thomas C. Williams
 _____________________________            ______________________________________
 Witness                                  Executive


                                          Acknowledged by:


                                          /s/ David E. Manz
                                          ______________________________________
                                          (Rurban Officer)

<PAGE>
                         Schedule A to Exhibit 10(s)

      The  following   executive  officers  of  Rurban  Financial  Corp.  (the
"Corporation") entered into Executive Salary Continuation  Agreements with the
Corporation   which  are  identical  to  the  Executive  Salary   Continuation
Agreement,  dated  October  11,  1995,  between  Thomas  C.  Williams  and the
Corporation filed as Exhibit 10(s) to the Corporation's  Annual Report on Form
10-K for the fiscal year ended December 31, 1995:

                             Position with              Date of Executive Salary
Name of Executive Officer    the Corporation            Continuation Agreement
_________________________    _______________            ______________________

David E. Manz                Executive Vice President     October 11, 1995

Edward L. Yoder              Vice President               October 16, 1995

Robert W. Constien           Vice President               October 16, 1995





                                 Exhibit 10(t)


                          DESCRIPTION OF SPLIT-DOLLAR
                         INSURANCE POLICIES MAINTAINED
                        FOR CERTAIN EXECUTIVE OFFICERS
                           OF RURBAN FINANCIAL CORP.

      Life insurance  policies are provided for certain executive  officers of
Rurban  Financial Corp. (the  "Corporation")  on a split-dollar  basis and the
Corporation  is  the  owner  of  the  split-dollar  policies.  Each  executive
officer's estate or designated beneficiaries are entitled to proceeds upon the
executive  officer's  death in a sum equal to two times  either the  executive
officer's  annual  salary at death,  if  actively  employed,  or final  annual
salary, if retired, less $50,000. The Corporation is entitled to the remainder
of the  proceeds  less any loans on the  policy and  unpaid  interest  or cash
withdrawals previously incurred by the Corporation. Each executive officer has
the right to designate one or more  beneficiaries  to receive his share of the
proceeds  payable  upon  death.  David E. Manz,  Edward L. Yoder and Robert W.
Constien  are the only  executive  officers  of the  Corporation  for whom the
split-dollar policies are being maintained. In addition, a split-dollar policy
has been  maintained  on behalf of  Richard  C.  Burrows,  a former  executive
officer and current director of the Corporation.




                                  Exhibit 24


                              POWERS OF ATTORNEY


<PAGE>


                              POWER OF ATTORNEY


            KNOW  ALL MEN BY THESE  PRESENTS,  that  the  undersigned  officer
and/or director of Rurban Financial Corp., an Ohio corporation  which is about
to file with the Securities and Exchange Commission,  Washington,  D.C., under
the provisions of the Securities Exchange Act of 1934, as amended,  the Annual
Report on Form 10-K for the  fiscal  year  ended  December  31,  1995,  hereby
constitutes  and appoints Thomas C. Williams and David E. Manz as his true and
lawful  attorneys-in-fact  and  agents,  with full power of  substitution  and
resubstitution,  for him and in his  name,  place  and  stead,  in any and all
capacities,  to sign  both  the  Annual  Report  on Form  10-K and any and all
amendments and documents  related  thereto,  and to file the same, and any and
all exhibits,  financial  statements and schedules related thereto,  and other
documents  in  connection   therewith,   with  the   Securities  and  Exchange
Commission, granting unto said attorneys-in-fact and agents, and substitute or
substitutes, full power and authority to do and perform each and every act and
thing  requisite and necessary to be done in and about the premises,  as fully
to all  intents  and  purposes  as he  might or  could  do in  person,  hereby
ratifying and confirming all that said attorneys-in-fact and agents, or any of
them or his or their substitute or substitutes, may lawfully do or cause to be
done by virtue hereof.

            IN WITNESS WHEREOF, the undersigned has hereunto set his hand this
26th day of February, 1996.


                                        /s/ Thomas C. Williams
                                        ________________________________________
                                        Thomas C. Williams



<PAGE>


                               POWER OF ATTORNEY


            KNOW  ALL MEN BY THESE  PRESENTS,  that  the  undersigned  officer
and/or director of Rurban Financial Corp., an Ohio corporation  which is about
to file with the Securities and Exchange Commission,  Washington,  D.C., under
the provisions of the Securities Exchange Act of 1934, as amended,  the Annual
Report on Form 10-K for the  fiscal  year  ended  December  31,  1995,  hereby
constitutes  and appoints Thomas C. Williams and David E. Manz as his true and
lawful  attorneys-in-fact  and  agents,  with full power of  substitution  and
resubstitution,  for him and in his  name,  place  and  stead,  in any and all
capacities,  to sign  both  the  Annual  Report  on Form  10-K and any and all
amendments and documents  related  thereto,  and to file the same, and any and
all exhibits,  financial  statements and schedules related thereto,  and other
documents  in  connection   therewith,   with  the   Securities  and  Exchange
Commission, granting unto said attorneys-in-fact and agents, and substitute or
substitutes, full power and authority to do and perform each and every act and
thing  requisite and necessary to be done in and about the premises,  as fully
to all  intents  and  purposes  as he  might or  could  do in  person,  hereby
ratifying and confirming all that said attorneys-in-fact and agents, or any of
them or his or their substitute or substitutes, may lawfully do or cause to be
done by virtue hereof.

            IN WITNESS WHEREOF, the undersigned has hereunto set his hand this
8th day of Jan., 1996.


                                        /s/ David E. Manz
                                        ________________________________________
                                        David E. Manz


<PAGE>


                               POWER OF ATTORNEY


            KNOW  ALL MEN BY THESE  PRESENTS,  that  the  undersigned  officer
and/or director of Rurban Financial Corp., an Ohio corporation  which is about
to file with the Securities and Exchange Commission,  Washington,  D.C., under
the provisions of the Securities Exchange Act of 1934, as amended,  the Annual
Report on Form 10-K for the  fiscal  year  ended  December  31,  1995,  hereby
constitutes  and appoints Thomas C. Williams and David E. Manz as his true and
lawful  attorneys-in-fact  and  agents,  with full power of  substitution  and
resubstitution,  for him and in his  name,  place  and  stead,  in any and all
capacities,  to sign  both  the  Annual  Report  on Form  10-K and any and all
amendments and documents  related  thereto,  and to file the same, and any and
all exhibits,  financial  statements and schedules related thereto,  and other
documents  in  connection   therewith,   with  the   Securities  and  Exchange
Commission, granting unto said attorneys-in-fact and agents, and substitute or
substitutes, full power and authority to do and perform each and every act and
thing  requisite and necessary to be done in and about the premises,  as fully
to all  intents  and  purposes  as he  might or  could  do in  person,  hereby
ratifying and confirming all that said attorneys-in-fact and agents, or any of
them or his or their substitute or substitutes, may lawfully do or cause to be
done by virtue hereof.

            IN WITNESS WHEREOF, the undersigned has hereunto set his hand this
26th day of February, 1996.


                                        /s/ R. C. Burrows
                                        ________________________________________
                                        Richard C. Burrows



<PAGE>


                               POWER OF ATTORNEY


            KNOW  ALL MEN BY THESE  PRESENTS,  that  the  undersigned  officer
and/or director of Rurban Financial Corp., an Ohio corporation  which is about
to file with the Securities and Exchange Commission,  Washington,  D.C., under
the provisions of the Securities Exchange Act of 1934, as amended,  the Annual
Report on Form 10-K for the  fiscal  year  ended  December  31,  1995,  hereby
constitutes  and appoints Thomas C. Williams and David E. Manz as his true and
lawful  attorneys-in-fact  and  agents,  with full power of  substitution  and
resubstitution,  for him and in his  name,  place  and  stead,  in any and all
capacities,  to sign  both  the  Annual  Report  on Form  10-K and any and all
amendments and documents  related  thereto,  and to file the same, and any and
all exhibits,  financial  statements and schedules related thereto,  and other
documents  in  connection   therewith,   with  the   Securities  and  Exchange
Commission, granting unto said attorneys-in-fact and agents, and substitute or
substitutes, full power and authority to do and perform each and every act and
thing  requisite and necessary to be done in and about the premises,  as fully
to all  intents  and  purposes  as he  might or  could  do in  person,  hereby
ratifying and confirming all that said attorneys-in-fact and agents, or any of
them or his or their substitute or substitutes, may lawfully do or cause to be
done by virtue hereof.

            IN WITNESS WHEREOF, the undersigned has hereunto set his hand this
26th day of February, 1996.


                                        /s/ John R. Compo
                                        ________________________________________
                                        John R. Compo


<PAGE>


                               POWER OF ATTORNEY


            KNOW  ALL MEN BY THESE  PRESENTS,  that  the  undersigned  officer
and/or director of Rurban Financial Corp., an Ohio corporation  which is about
to file with the Securities and Exchange Commission,  Washington,  D.C., under
the provisions of the Securities Exchange Act of 1934, as amended,  the Annual
Report on Form 10-K for the  fiscal  year  ended  December  31,  1995,  hereby
constitutes  and appoints Thomas C. Williams and David E. Manz as his true and
lawful  attorneys-in-fact  and  agents,  with full power of  substitution  and
resubstitution,  for him and in his  name,  place  and  stead,  in any and all
capacities,  to sign  both  the  Annual  Report  on Form  10-K and any and all
amendments and documents  related  thereto,  and to file the same, and any and
all exhibits,  financial  statements and schedules related thereto,  and other
documents  in  connection   therewith,   with  the   Securities  and  Exchange
Commission, granting unto said attorneys-in-fact and agents, and substitute or
substitutes, full power and authority to do and perform each and every act and
thing  requisite and necessary to be done in and about the premises,  as fully
to all  intents  and  purposes  as he  might or  could  do in  person,  hereby
ratifying and confirming all that said attorneys-in-fact and agents, or any of
them or his or their substitute or substitutes, may lawfully do or cause to be
done by virtue hereof.

            IN WITNESS WHEREOF, the undersigned has hereunto set his hand this
26th day of February, 1996.


                                        /s/ Robert A. Fawcett, Jr.
                                        ________________________________________
                                        Robert A. Fawcett, Jr.



<PAGE>


                               POWER OF ATTORNEY


            KNOW  ALL MEN BY THESE  PRESENTS,  that  the  undersigned  officer
and/or director of Rurban Financial Corp., an Ohio corporation  which is about
to file with the Securities and Exchange Commission,  Washington,  D.C., under
the provisions of the Securities Exchange Act of 1934, as amended,  the Annual
Report on Form 10-K for the  fiscal  year  ended  December  31,  1995,  hereby
constitutes  and appoints Thomas C. Williams and David E. Manz as his true and
lawful  attorneys-in-fact  and  agents,  with full power of  substitution  and
resubstitution,  for him and in his  name,  place  and  stead,  in any and all
capacities,  to sign  both  the  Annual  Report  on Form  10-K and any and all
amendments and documents  related  thereto,  and to file the same, and any and
all exhibits,  financial  statements and schedules related thereto,  and other
documents  in  connection   therewith,   with  the   Securities  and  Exchange
Commission, granting unto said attorneys-in-fact and agents, and substitute or
substitutes, full power and authority to do and perform each and every act and
thing  requisite and necessary to be done in and about the premises,  as fully
to all  intents  and  purposes  as he  might or  could  do in  person,  hereby
ratifying and confirming all that said attorneys-in-fact and agents, or any of
them or his or their substitute or substitutes, may lawfully do or cause to be
done by virtue hereof.

            IN WITNESS WHEREOF, the undersigned has hereunto set his hand this
26th day of February, 1996.


                                        /s/ Richard Z. Graham
                                        ________________________________________
                                        Richard Z. Graham


<PAGE>


                               POWER OF ATTORNEY


            KNOW  ALL MEN BY THESE  PRESENTS,  that  the  undersigned  officer
and/or director of Rurban Financial Corp., an Ohio corporation  which is about
to file with the Securities and Exchange Commission,  Washington,  D.C., under
the provisions of the Securities Exchange Act of 1934, as amended,  the Annual
Report on Form 10-K for the  fiscal  year  ended  December  31,  1995,  hereby
constitutes  and appoints Thomas C. Williams and David E. Manz as his true and
lawful  attorneys-in-fact  and  agents,  with full power of  substitution  and
resubstitution,  for him and in his  name,  place  and  stead,  in any and all
capacities,  to sign  both  the  Annual  Report  on Form  10-K and any and all
amendments and documents  related  thereto,  and to file the same, and any and
all exhibits,  financial  statements and schedules related thereto,  and other
documents  in  connection   therewith,   with  the   Securities  and  Exchange
Commission, granting unto said attorneys-in-fact and agents, and substitute or
substitutes, full power and authority to do and perform each and every act and
thing  requisite and necessary to be done in and about the premises,  as fully
to all  intents  and  purposes  as he  might or  could  do in  person,  hereby
ratifying and confirming all that said attorneys-in-fact and agents, or any of
them or his or their substitute or substitutes, may lawfully do or cause to be
done by virtue hereof.

            IN WITNESS WHEREOF, the undersigned has hereunto set his hand this
26th day of February, 1996.


                                        /s/ John H. Moore
                                        ________________________________________
                                        John H. Moore



<PAGE>


                               POWER OF ATTORNEY


            KNOW  ALL MEN BY THESE  PRESENTS,  that  the  undersigned  officer
and/or director of Rurban Financial Corp., an Ohio corporation  which is about
to file with the Securities and Exchange Commission,  Washington,  D.C., under
the provisions of the Securities Exchange Act of 1934, as amended,  the Annual
Report on Form 10-K for the  fiscal  year  ended  December  31,  1995,  hereby
constitutes  and appoints Thomas C. Williams and David E. Manz as his true and
lawful  attorneys-in-fact  and  agents,  with full power of  substitution  and
resubstitution,  for him and in his  name,  place  and  stead,  in any and all
capacities,  to sign  both  the  Annual  Report  on Form  10-K and any and all
amendments and documents  related  thereto,  and to file the same, and any and
all exhibits,  financial  statements and schedules related thereto,  and other
documents  in  connection   therewith,   with  the   Securities  and  Exchange
Commission, granting unto said attorneys-in-fact and agents, and substitute or
substitutes, full power and authority to do and perform each and every act and
thing  requisite and necessary to be done in and about the premises,  as fully
to all  intents  and  purposes  as he  might or  could  do in  person,  hereby
ratifying and confirming all that said attorneys-in-fact and agents, or any of
them or his or their substitute or substitutes, may lawfully do or cause to be
done by virtue hereof.

            IN WITNESS WHEREOF, the undersigned has hereunto set his hand this
26th day of February, 1996.


                                        /s/ Merlin W. Mygrant
                                        ________________________________________
                                        Merlin W. Mygrant


<PAGE>


                               POWER OF ATTORNEY


            KNOW  ALL MEN BY THESE  PRESENTS,  that  the  undersigned  officer
and/or director of Rurban Financial Corp., an Ohio corporation  which is about
to file with the Securities and Exchange Commission,  Washington,  D.C., under
the provisions of the Securities Exchange Act of 1934, as amended,  the Annual
Report on Form 10-K for the  fiscal  year  ended  December  31,  1995,  hereby
constitutes  and appoints Thomas C. Williams and David E. Manz as his true and
lawful  attorneys-in-fact  and  agents,  with full power of  substitution  and
resubstitution,  for him and in his  name,  place  and  stead,  in any and all
capacities,  to sign  both  the  Annual  Report  on Form  10-K and any and all
amendments and documents  related  thereto,  and to file the same, and any and
all exhibits,  financial  statements and schedules related thereto,  and other
documents  in  connection   therewith,   with  the   Securities  and  Exchange
Commission, granting unto said attorneys-in-fact and agents, and substitute or
substitutes, full power and authority to do and perform each and every act and
thing  requisite and necessary to be done in and about the premises,  as fully
to all  intents  and  purposes  as he  might or  could  do in  person,  hereby
ratifying and confirming all that said attorneys-in-fact and agents, or any of
them or his or their substitute or substitutes, may lawfully do or cause to be
done by virtue hereof.

            IN WITNESS WHEREOF, the undersigned has hereunto set his hand this
26th day of February, 1996.


                                        /s/ Steven D. VanDemark
                                        ________________________________________
                                        Steven D. VanDemark




<PAGE>


                               POWER OF ATTORNEY


            KNOW  ALL MEN BY THESE  PRESENTS,  that  the  undersigned  officer
and/or director of Rurban Financial Corp., an Ohio corporation  which is about
to file with the Securities and Exchange Commission,  Washington,  D.C., under
the provisions of the Securities Exchange Act of 1934, as amended,  the Annual
Report on Form 10-K for the  fiscal  year  ended  December  31,  1995,  hereby
constitutes  and appoints Thomas C. Williams and David E. Manz as his true and
lawful  attorneys-in-fact  and  agents,  with full power of  substitution  and
resubstitution,  for him and in his  name,  place  and  stead,  in any and all
capacities,  to sign  both  the  Annual  Report  on Form  10-K and any and all
amendments and documents  related  thereto,  and to file the same, and any and
all exhibits,  financial  statements and schedules related thereto,  and other
documents  in  connection   therewith,   with  the   Securities  and  Exchange
Commission, granting unto said attorneys-in-fact and agents, and substitute or
substitutes, full power and authority to do and perform each and every act and
thing  requisite and necessary to be done in and about the premises,  as fully
to all  intents  and  purposes  as he  might or  could  do in  person,  hereby
ratifying and confirming all that said attorneys-in-fact and agents, or any of
them or his or their substitute or substitutes, may lawfully do or cause to be
done by virtue hereof.

            IN WITNESS WHEREOF, the undersigned has hereunto set his hand this
26th day of February, 1996.


                                        /s/ J. Michael Walz
                                        ________________________________________
                                        J. Michael Walz, D.D.S.


<TABLE> <S> <C>

<ARTICLE> 9
       
<S>                                 <C>
<PERIOD-TYPE>                       12-MOS
<FISCAL-YEAR-END>                                  DEC-31-1995
<PERIOD-END>                                       DEC-31-1995
<CASH>                                              21,067,131
<INT-BEARING-DEPOSITS>                                 180,000
<FED-FUNDS-SOLD>                                     7,312,525
<TRADING-ASSETS>                                             0
<INVESTMENTS-HELD-FOR-SALE>                         90,329,866
<INVESTMENTS-CARRYING>                                       0
<INVESTMENTS-MARKET>                                         0
<LOANS>                                            280,314,137
<ALLOWANCE>                                          4,270,000
<TOTAL-ASSETS>                                     411,225,765
<DEPOSITS>                                         367,796,538
<SHORT-TERM>                                                 0
<LIABILITIES-OTHER>                                  3,350,736
<LONG-TERM>                                                  0
                                        0
                                                  0
<COMMON>                                             4,717,277
<OTHER-SE>                                          35,361,214
<TOTAL-LIABILITIES-AND-EQUITY>                     411,225,765
<INTEREST-LOAN>                                     26,539,689
<INTEREST-INVEST>                                    4,182,942
<INTEREST-OTHER>                                       707,596
<INTEREST-TOTAL>                                    31,430,227
<INTEREST-DEPOSIT>                                  14,197,998
<INTEREST-EXPENSE>                                  14,238,048
<INTEREST-INCOME-NET>                               17,192,179
<LOAN-LOSSES>                                        1,451,898
<SECURITIES-GAINS>                                       3,113
<EXPENSE-OTHER>                                     15,271,563
<INCOME-PRETAX>                                      6,221,917
<INCOME-PRE-EXTRAORDINARY>                           6,221,917
<EXTRAORDINARY>                                              0
<CHANGES>                                                    0
<NET-INCOME>                                         4,094,813
<EPS-PRIMARY>                                             1.87
<EPS-DILUTED>                                             1.87
<YIELD-ACTUAL>                                            4.72
<LOANS-NON>                                          2,403,000
<LOANS-PAST>                                           711,000
<LOANS-TROUBLED>                                             0
<LOANS-PROBLEM>                                      3,815,000
<ALLOWANCE-OPEN>                                     4,770,000
<CHARGE-OFFS>                                        2,650,826
<RECOVERIES>                                           698,928
<ALLOWANCE-CLOSE>                                    4,270,000
<ALLOWANCE-DOMESTIC>                                 3,629,000
<ALLOWANCE-FOREIGN>                                          0
<ALLOWANCE-UNALLOCATED>                                641,000
        

</TABLE>


© 2022 IncJournal is not affiliated with or endorsed by the U.S. Securities and Exchange Commission