Good morning, ladies and gentlemen, and welcome to this Rurban Financial Corp. Fourth Quarter 2011 Earnings Conference Call and Webcast. [Operator Instructions] I'll now turn the call over to Ms. Linda Sickmiller. Please go ahead.

Good morning, everyone. I'd like to remind you again that this conference call is being broadcast live over the Internet and will also be archived and available on our website at www.rurbanfinancial.net until March 1, 2012. Joining me today are Mark Klein, President and Chief Executive Officer; Tony Cosentino, Chief Financial Officer; and Jon Gathman, Executive Vice President and Senior Lending Officer. This call may contain certain forward-looking statements regarding Rurban's financial performance, anticipated plans, operational results and objectives. Forward-looking statements are based on management's expectation and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those expressed or implied in our webcast today. We have identified a number of different factors within the forward-looking statement at the end of our earnings release, and you are encouraged to review those factors. Rurban undertakes no obligation to update any forward-looking statement, except as required by law, after the date of this call. I will now turn the call over to Mark Klein.

Thank you, Linda, and good morning, everyone. Welcome to Rurban Financial Corp's conference call to discuss fourth quarter results. Earnings were provided in the press release made public Wednesday, February 1 and posted to our website via our 8-K filing. Joining me on the call this morning, as Linda had indicated, is Tony Cosentino, our CFO, and Jon Gathman, our Senior Lending Officer. Overall, we're quite pleased with our progress we've made this past year. We continued to build earnings throughout the year, reporting fourth quarter core earnings of $1.1 million compared to $620,000 for the third quarter and a loss of $1.9 million for the year ago fourth quarter. This amounts to a fourth quarter swing of $3 million year-over-year on a core basis. We made progress on just about every front. We lowered operating expenses by over $10 million compared to 2010, reduced the size of the balance sheet to improve our capital ratios and net interest margin, maintained mortgage volume close to last year's record level and even managed to grow our loan balances this year by 3.5%. We also reduced problem assets by 25% and received ancillary benefits such as lower credit administration and OREO costs. We had fewer one-time charges in 2011, and in 2010, nothing of real significance. Our GAAP earnings for 2011 were $2.1 million, actually $250,000 higher than our core earnings. An important goal for 2011 had been to offset the loss of RDSI's data processing fee income, which was lower by $6.6 million this past year. We succeeded in this regard with expense savings of $10.2 million, the majority from RDSI. In the process, we reduced our full-time staff by 32, with 17 full-time equivalent coming out of RDSI. As a result, our pre-provision, pretax earnings from operations this year were…

Thanks, Mark. We are extremely pleased with the improvements made in key areas of our financial performance and the overall profitability in the fourth quarter and for the full year of 2011. We saw continued loan growth in the fourth quarter with annualized growth of 3.3%. We grew our loan portfolio in every quarter of 2011, and from December 31, 2010, we have added $15 million of outstandings, with $12 million in the real estate sector and $3 million from C&I. Net income was $675,000 or $0.14 per share for the quarter compared to $602,000 or $0.12 per share for the third quarter of 2011, versus a $6.6 million loss in the fourth quarter of 2010. For the year, net income came in at $2.1 million or $0.42 a share. After the difficult year that we encountered in 2010, we were quite pleased to report net income in all 4 quarters of 2011. And we had core earnings of $1.1 million in the fourth quarter, up over $400,000 from the linked quarter. Our provision expense totaled $300,000, which was even to the linked quarter, but down $1.5 million from the fourth quarter of 2010. Our loan loss allowance increased from the linked quarter and, at 1.48%, is down just slightly from the year ago. The allowance now represents 82% of our non-accruing loans, which is well up from the 55% level at December 31, 2010. Net charge-offs for the quarter at an annualized rate of 28 basis points is more in line with our historical percentages. The quarter included a partial recovery of a large charge-off from the fourth quarter of 2009. For the full year, we had net charge-offs of $2.5 million, down $8.4 million from the full year of 2010. And if we adjust for the noncore loan…

Thank you, Tony. Well done, nice quarter. The net result of our initiatives this past year has been to strengthen our balance sheet and improve profitability, as Tony had indicated, to a significant extent in both areas. We added $3.4 million to our tangible equity during 2011 and have made good progress on our goal of 6% tangible common equity from internally generated profits. Our return on average assets raised 42 basis points for the fourth quarter and 69 basis points on a core basis, up from a loss position for the year ago quarter. The potential for substantial upside is becoming more evident with each quarter's performance. We realize that with limited growth in our rural Northwest Ohio markets, we have to be extremely cost conscious. So in addition to our rural markets, we have focused increasingly on markets with higher growth potential like Toledo and Columbus, Ohio, and Fort Wayne, Indiana. We've been pleased with our progress on both of these initiatives and even more excited about our future prospects. We continue to be prudent in our balance of loan growth and conservative underwriting standards, especially with respect to commercial lending. Loan quality clearly remains the center post of our portfolio. Deposit rates continue to remain at historic lows. We expect that this environment will persist well into 2013, and lower asset yields will continue to exert pressure on our net interest margin without any offsetting benefits from lower retail funding costs, which have been reduced to 71 basis points in the fourth quarter. We continue to seek additional noninterest-bearing deposits, but, unfortunately, our bank is not alone in this endeavor. In summary, we have managed our way through the headwinds of a struggling economy, stabilized our company following the ill-fated technology venture and faced the combined challenges of a housing and credit meltdown. We have been tested, and we have learned many lessons in the process, which we hope to apply to much higher performance going forward. We have begun to experience the benefits of geographic diversification combined with strong regional leadership. Our banking model is based on the identification of client financial needs, and we're becoming better every quarter in providing just the right solutions. I'd like to take a minute before I close to thank our staff members for their diligence and pursuit of customer solutions and customer satisfaction. Thanks also to our clients for choosing State Bank. We want to meet and exceed expectations in every aspect of the banking relationship. Lastly, a word of gratitude to our supportive stockholders. We hope your confidence will soon be rewarded. And now I'll turn the call back to Linda Sickmiller to see if there are any questions from our investment community. Linda?

Thank you very much, Mark. It is now time for the question-and-answer session. [Operator Instructions] And while we're waiting to see if we have any additional questions, I'd like to remind you that today's webcast will be accessible on our website at www.rurbanfinancial.net until March 1, 2012. And since there are no more questions, I'll turn the call back over to Mark Klein.

Once again, thank you for joining us today and your continued interest in Rurban Financial Corp. Looking forward to chatting with you next quarter. Have a great day.

All parties may now disconnect.