*Table            of Contents*

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**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**FORM      10-Q**

**RURBAN      FINANCIAL CORP. **

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

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| **Common                Shares, without par value** | **4,987,933                shares**                   |
|-----------------------------------------------------|-------------------------------------------------------|
| **(class)**                                         | **(Outstanding                at November 13, 2007)** |

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*Table        of Contents*

**RURBAN      FINANCIAL CORP.**

**FORM      10-Q**

**TABLE      OF CONTENTS**

| **PART                I -                FINANCIAL INFORMATION** |
|------------------------------------------------------------------|
|                                                             |   |
| Item                1.                                           | Financial                Statements |
| Item                2.                                           | Management’s                Discussion and Analysis of Financial Condition and Results of                Operations |
| Item                3.                                           | Quantitative                and Qualitative Disclosures About Market Risk |
| Item                4.                                           | Controls                and Procedures |
|                                                             |   |
| **PART                II                - OTHER INFORMATION**    |
|                                                             |   |
| Item                1.                                           | Legal                Proceedings |
| Item                1A.                                          | Risk                Factors |
| Item                2.                                           | Unregistered                Sales of Equity Securities and Use of Proceeds |
| Item                3.                                           | Defaults                Upon Senior Securities |
| Item                4.                                           | Submission                of Matters to a Vote of Security Holders |
| Item                5.                                           | Other                Information |
| Item                6.                                           | Exhibits |
|                                                             |   |
| Signatures                                                       |

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*Table          of Contents*

**PART      I - FINANCIAL INFORMATION**

**Item      1. Financial Statements**

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*Table          of Contents*

**Rurban      Financial Corp.**

**Condensed        Consolidated Balance Sheets**

**September        30, 2007 and December 31, 2006**

|                                                            |   | **(Unaudited)**                  |        |                            |   |
|-----------------------------------------------------------------|--------|----------------------------------|-------------|---------------------------------|--------|
|                                                            |   | **September                30,** |        | **December                31,** |   |
|                                                            |   | **2007**                         |        | **2006**                        |   |
| **Assets**                                                      |   |                             |        |                            |   |
| Cash                and due from banks                          |   | $                                | 12,859,263  |                            | $      | 13,381,791 |   |
| Federal                funds sold                               |   |                             | —     |                            |   | 9,100,000 |   |
| Cash                and cash equivalents                        |   |                             | 12,859,263  |                            |   | 22,481,791 |   |
| Interest-bearing                deposits                        |   |                             | —     |                            |   | 150,000 |   |
| Available-for-sale                securities                    |   |                             | 102,759,847 |                            |   | 102,462,075 |   |
| Loans                held for sale                              |   |                             | —     |                            |   | 390,100 |   |
| Loans,                net of unearned income                    |   |                             | 388,264,099 |                            |   | 370,101,809 |   |
| Allowance                for loan losses                        |   |                             | (3,936,545  | )                               |   | (3,717,377 | ) |
| Premises                and equipment                           |   |                             | 15,290,795  |                            |   | 15,449,774 |   |
| Purchased                software                               |   |                             | 4,500,417   |                            |   | 4,618,691 |   |
| Federal                Reserve and Federal Home Loan Bank stock |   |                             | 4,021,200   |                            |   | 3,993,450 |   |
| Foreclosed                assets held for sale, net             |   |                             | 64,805      |                            |   | 82,397 |   |
| Interest                receivable                              |   |                             | 3,374,265   |                            |   | 3,129,774 |   |
| Goodwill                                                        |   |                             | 13,940,618  |                            |   | 13,674,058 |   |
| Core                deposits and other intangibles              |   |                             | 5,322,647   |                            |   | 5,858,982 |   |
| Cash                value of life insurance                     |   |                             | 12,048,425  |                            |   | 10,771,843 |   |
| Other                                                           |   |                             | 7,164,456   |                            |   | 6,559,886 |   |
| Total                assets                                     |   | $                                | 565,674,291 |                            | $      | 556,007,253 |   |
|                                                            |   |                             |        |                            |   |   |   |
|                                                                 |   |                             |        |                            |   |   |   |

*See      notes to condensed consolidated financial statements      (unaudited)*

*Note:      The balance sheet at December 31, 2006 has been derived from the*
*audited      consolidated financial statements at that date.*

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*Table          of Contents*

**Rurban      Financial Corp.**

**Condensed      Consolidated Balance Sheets**

**September      30, 2007 and December 31, 2006**

|                                                                                                                                                                                                                             |   | **(Unaudited)**                  |        |                            |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|-------------|---------------------------------|--------|
|                                                                                                                                                                                                                             |   | **September                30,** |        | **December                31,** |   |
|                                                                                                                                                                                                                             |   | **2007**                         |        | **2006**                        |   |
| **Liabilities                and Stockholders’ Equity**                                                                                                                                                                    |   |                             |        |                            |   |
| **Liabilities**                                                                                                                                                                                                                  |   |                             |        |                            |   |
| Deposits                                                                                                                                                                                                                         |   |                             |        |                            |   |
| Demand                                                                                                                                                                                                                           |   | $                                | 41,486,691  |                            | $      | 46,565,554 |   |
| Savings,                interest checking and money market                                                                                                                                                                       |   |                             | 138,095,329 |                            |   | 130,267,333 |   |
| Time                                                                                                                                                                                                                             |   |                             | 233,570,398 |                            |   | 237,722,558 |   |
| Total                deposits                                                                                                                                                                                                    |   |                             | 413,152,418 |                            |   | 414,555,445 |   |
| Notes                payable                                                                                                                                                                                                     |   |                             | 1,025,992   |                            |   | 2,589,207 |   |
| Federal                Home Loan Bank advances                                                                                                                                                                                   |   |                             | 19,000,000  |                            |   | 21,000,000 |   |
| Federal                Funds Purchased                                                                                                                                                                                           |   |                             | 4,400,000   |                            |   | — |   |
| Retail                repurchase agreements                                                                                                                                                                                      |   |                             | 42,566,025  |                            |   | 32,270,900 |   |
| Trust                preferred securities                                                                                                                                                                                        |   |                             | 20,620,000  |                            |   | 20,620,000 |   |
| Interest                payable                                                                                                                                                                                                  |   |                             | 2,409,523   |                            |   | 2,224,413 |   |
| Other                liabilities                                                                                                                                                                                                 |   |                             | 3,995,977   |                            |   | 5,792,135 |   |
| Total                liabilities                                                                                                                                                                                                 |   |                             | 507,169,935 |                            |   | 499,052,100 |   |
| **Commitments                and Contingent Liabilities**                                                                                                                                                                        |   |                             |        |                            |   |   |   |
| **Stockholders’                Equity**                                                                                                                                                                                    |   |                             |        |                            |   |   |   |
| Common                stock, $2.50 stated value; authorized 10,000,000 shares; issued 5,027,433                shares; outstanding Sept. 2007 - 4,999,433 shares, December 2006                -                5,027,433 shares |   |                             | 12,568,583  |                            |   | 12,568,583 |   |
| Additional                paid-in capital                                                                                                                                                                                        |   |                             | 14,902,827  |                            |   | 14,859,165 |   |
| Retained                earnings                                                                                                                                                                                                 |   |                             | 31,805,145  |                            |   | 30,407,298 |   |
| Accumulated                other comprehensive loss                                                                                                                                                                              |   |                             | (421,721    | )                               |   | (879,893 | ) |
| Treasury                Stock, at cost                                                                                                                                                                                           |   |                             |        |                            |   |   |   |
| Common;                Sept. 2007 - 28,000 shares, December 2006 - 0 shares                                                                                                                                                      |   |                             | (350,480    | )                               |   | — |   |
| Total                stockholders’ equity                                                                                                                                                                                  |   |                             | 58,504,354  |                            |   | 56,955,153 |   |
| Total                liabilities and stockholders’ equity                                                                                                                                                                  |   | $                                | 565,674,291 |                            | $      | 556,007,253 |   |
|                                                                                                                                                                                                                             |   |                             |        |                            |   |   |   |
|                                                                                                                                                                                                                                  |   |                             |        |                            |   |   |   |

*See      notes to condensed consolidated financial statements      (unaudited)*

*Note:      The balance sheet at December 31, 2006 has been derived from the*
*audited      consolidated financial statements at that date.*

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*Table          of Contents*

**Rurban      Financial Corp.**

**Condensed        Consolidated Statements of Income (Unaudited)**

**Three        Months Ended**

|                                                                   |   | **September                30,****2007** |      | **September                30,****2006** |   |
|------------------------------------------------------------------------|--------|------------------------------------------|-----------|------------------------------------------|--------|
| **Interest                Income**                                     |   |                                     |      |                                     |   |
| Loans                                                                  |   |                                     |      |                                     |   |
| Taxable                                                                |   | $                                        | 7,072,488 |                                     | $      | 6,641,379 |   |
| Tax-exempt                                                             |   |                                     | 16,668    |                                     |   | 18,326 |   |
| Securities                                                             |   |                                     |      |                                     |   |   |   |
| Taxable                                                                |   |                                     | 1,041,177 |                                     |   | 1,306,979 |   |
| Tax-exempt                                                             |   |                                     | 169,719   |                                     |   | 141,943 |   |
| Other                                                                  |   |                                     | 50,288    |                                     |   | 48,846 |   |
| Total                interest income                                   |   |                                     | 8,350,340 |                                     |   | 8,157,473 |   |
| **Interest                Expense**                                    |   |                                     |      |                                     |   |   |   |
| Deposits                                                               |   |                                     | 3,497,275 |                                     |   | 3,017,993 |   |
| Other                borrowings                                        |   |                                     | 32,026    |                                     |   | 67,773 |   |
| Retail                repurchase agreements                            |   |                                     | 435,216   |                                     |   | 182,007 |   |
| Federal                Home Loan Bank advances                         |   |                                     | 268,289   |                                     |   | 667,749 |   |
| Trust                preferred securities                              |   |                                     | 456,582   |                                     |   | 466,417 |   |
| Total                interest expense                                  |   |                                     | 4,689,389 |                                     |   | 4,401,939 |   |
| **Net                Interest Income**                                 |   |                                     | 3,660,951 |                                     |   | 3,755,534 |   |
| **Provision                for Loan Losses**                           |   |                                     | 140,409   |                                     |   | 35,000 |   |
| **Net                Interest Income After Provision for Loan Losses** |   |                                     | 3,520,543 |                                     |   | 3,720,534 |   |
| **Non-interest                Income**                                 |   |                                     |      |                                     |   |   |   |
| Data                service fees                                       |   |                                     | 5,004,394 |                                     |   | 3,785,037 |   |
| Trust                fees                                              |   |                                     | 819,989   |                                     |   | 753,449 |   |
| Customer                service fees                                   |   |                                     | 588,447   |                                     |   | 542,518 |   |
| Net                gains on loan sales                                 |   |                                     | 73,581    |                                     |   | 283,123 |   |
| Loan                servicing fees                                     |   |                                     | 82,651    |                                     |   | 96,754 |   |
| Net                realized gain on sale of                            |   |                                     |      |                                     |   |   |   |
| available-for-sale                securities                           |   |                                     | —   |                                     |   | — |   |
| Gain                (loss) on sale of assets                           |   |                                     | 11,862    |                                     |   | 25,914 |   |
| Other                                                                  |   |                                     | 201,920   |                                     |   | 415,961 |   |
| Total                non-interest income                               |   |                                     | 6,782,842 |                                     |   | 5,902,756 |   |
|                                                                        |   |                                     |      |                                     |   |   |   |
|                                                                   |   |                                     |      |                                     |   |   |   |

*See      notes to condensed consolidated financial statements      (unaudited)*

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*Table          of Contents*

**Rurban      Financial Corp.**

**Condensed        Consolidated Statements of Income (Unaudited)**

**Three        Months Ended**

|                                            |   | **September                30,****2007** |      | **September                30,****2006** |   |
|-------------------------------------------------|--------|------------------------------------------|-----------|------------------------------------------|--------|
| **Non-interest                Expense**         |   |                                     |      |                                     |   |
| Salaries                and employee benefits   |   | $                                        | 4,290,961 |                                     | $      | 4,253,924 |   |
| Net                occupancy expense            |   |                                     | 514,742   |                                     |   | 468,855 |   |
| Equipment                expense                |   |                                     | 1,625,762 |                                     |   | 1,445,073 |   |
| Data                processing fees             |   |                                     | 102,292   |                                     |   | 146,703 |   |
| Professional                fees                |   |                                     | 461,844   |                                     |   | 481,132 |   |
| Marketing                expense                |   |                                     | 259,196   |                                     |   | 168,031 |   |
| Printing                and office supplies     |   |                                     | 130,363   |                                     |   | 126,765 |   |
| Telephone                and communications     |   |                                     | 446,465   |                                     |   | 467,692 |   |
| Postage                and delivery expense     |   |                                     | 392,211   |                                     |   | 142,957 |   |
| State,                local and other taxes     |   |                                     | 103,674   |                                     |   | 188,464 |   |
| Employee                expense                 |   |                                     | 266,277   |                                     |   | 235,429 |   |
| Other                                           |   |                                     | 512,663   |                                     |   | 389,631 |   |
| Total                non-interest expense       |   |                                     | 9,106,400 |                                     |   | 8,514,656 |   |
| **Income                Before Income Tax**     |   |                                     | 1,196,985 |                                     |   | 1,108,634 |   |
| **Provision                for Income Taxes**   |   |                                     | 333,384   |                                     |   | 294,893 |   |
| **Net                Income**                   |   | $                                        | 863,601   |                                     | $      | 813,741 |   |
| **Basic                Earnings Per Share**     |   | $                                        | 0.17      |                                     | $      | 0.16 |   |
| **Diluted                Earnings Per Share**   |   | $                                        | 0.17      |                                     | $      | 0.16 |   |
| **Dividends                Declared Per Share** |   | $                                        | 0.07      |                                     | $      | 0.05 |   |

*See      notes to condensed consolidated financial statements      (unaudited)*

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*Table          of Contents*

**Rurban      Financial Corp.**

**Condensed        Consolidated Statements of Income (Unaudited)**

**Nine        Months Ended**

|                                                                   |   | **September                30,****2007** |       | **September                30,****2006** |   |
|------------------------------------------------------------------------|--------|------------------------------------------|------------|------------------------------------------|--------|
| **Interest                Income**                                     |   |                                     |       |                                     |   |
| Loans                                                                  |   |                                     |       |                                     |   |
| Taxable                                                                |   | $                                        | 20,725,807 |                                     | $      | 18,238,590 |   |
| Tax-exempt                                                             |   |                                     | 51,211     |                                     |   | 45,718 |   |
| Securities                                                             |   |                                     |       |                                     |   |   |   |
| Taxable                                                                |   |                                     | 3,176,674  |                                     |   | 3,953,438 |   |
| Tax-exempt                                                             |   |                                     | 483,621    |                                     |   | 410,346 |   |
| Other                                                                  |   |                                     | 163,894    |                                     |   | 99,158 |   |
| Total                interest income                                   |   |                                     | 24,601,207 |                                     |   | 22,747,250 |   |
| **Interest                Expense**                                    |   |                                     |       |                                     |   |   |   |
| Deposits                                                               |   |                                     | 10,212,672 |                                     |   | 7,695,387 |   |
| Other                borrowings                                        |   |                                     | 140,644    |                                     |   | 120,220 |   |
| Retail                repurchase agreements                            |   |                                     | 1,130,898  |                                     |   | 465,560 |   |
| Federal                Home Loan Bank advances                         |   |                                     | 760,534    |                                     |   | 1,684,415 |   |
| Trust                preferred securities                              |   |                                     | 1,352,093  |                                     |   | 1,331,615 |   |
| Total                interest expense                                  |   |                                     | 13,596,842 |                                     |   | 11,297,197 |   |
| **Net                Interest Income**                                 |   |                                     | 11,004,365 |                                     |   | 11,450,053 |   |
| **Provision                for Loan Losses**                           |   |                                     | 378,643    |                                     |   | 337,321 |   |
| **Net                Interest Income After Provision for Loan Losses** |   |                                     | 10,625,723 |                                     |   | 11,112,732 |   |
| **Non-interest                Income**                                 |   |                                     |       |                                     |   |   |   |
| Data                service fees                                       |   |                                     | 14,467,788 |                                     |   | 10,312,757 |   |
| Trust                fees                                              |   |                                     | 2,512,251  |                                     |   | 2,361,127 |   |
| Customer                service fees                                   |   |                                     | 1,650,080  |                                     |   | 1,635,272 |   |
| Net                gains on loan sales                                 |   |                                     | 302,028    |                                     |   | 415,833 |   |
| Net                realized gains on sales of                          |   |                                     |       |                                     |   |   |   |
| available-for-sale                                                     |   |                                     | 367        |                                     |   | — |   |
| Loan                servicing fees                                     |   |                                     | 280,789    |                                     |   | 301,233 |   |
| Gain                (loss) on sale of assets                           |   |                                     | 61,839     |                                     |   | 85,346 |   |
| Other                                                                  |   |                                     | 754,144    |                                     |   | 1,067,739 |   |
| Total                non-interest income                               |   |                                     | 20,029,284 |                                     |   | 16,179,307 |   |
|                                                                   |   |                                     |       |                                     |   |   |   |
|                                                                        |   |                                     |       |                                     |   |   |   |

*See        notes to condensed consolidated financial statements        (unaudited)*

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*Table            of Contents*

**Rurban          Financial Corp.**

**Condensed      Consolidated Statements of Income (Unaudited)**

**Nine      Months Ended**

|                                            |   | **September                30,****2007** |       | **September                30,****2006** |   |
|-------------------------------------------------|--------|------------------------------------------|------------|------------------------------------------|--------|
| **Non-interest                Expense**         |   |                                     |       |                                     |   |
| Salaries                and employee benefits   |   | $                                        | 12,873,072 |                                     | $      | 11,906,909 |   |
| Net                occupancy expense            |   |                                     | 1,547,800  |                                     |   | 1,334,722 |   |
| Equipment                expense                |   |                                     | 4,908,311  |                                     |   | 4,168,534 |   |
| Data                processing fees             |   |                                     | 372,716    |                                     |   | 402,661 |   |
| Professional                fees                |   |                                     | 1,640,250  |                                     |   | 1,525,399 |   |
| Marketing                expense                |   |                                     | 601,979    |                                     |   | 536,977 |   |
| Printing                and office supplies     |   |                                     | 509,817    |                                     |   | 453,110 |   |
| Telephone                and communications     |   |                                     | 1,329,359  |                                     |   | 1,277,707 |   |
| Postage                and delivery expense     |   |                                     | 1,168,563  |                                     |   | 397,217 |   |
| State,                local and other taxes     |   |                                     | 468,590    |                                     |   | 512,757 |   |
| Employee                expense                 |   |                                     | 801,374    |                                     |   | 745,341 |   |
| Other                                           |   |                                     | 1,250,192  |                                     |   | 1,283,228 |   |
| Total                non-interest expense       |   |                                     | 27,472,023 |                                     |   | 24,544,562 |   |
| **Income                Before Income Tax**     |   |                                     | 3,182,984  |                                     |   | 2,747,477 |   |
| **Provision                for Income Taxes**   |   |                                     | 831,885    |                                     |   | 697,668 |   |
| **Net                Income**                   |   | $                                        | 2,351,099  |                                     | $      | 2,049,809 |   |
| **Basic                Earnings Per Share**     |   | $                                        | 0.47       |                                     | $      | 0.41 |   |
| **Diluted                Earnings Per Share**   |   | $                                        | 0.47       |                                     | $      | 0.41 |   |
| **Dividends                Declared Per Share** |   | $                                        | 0.19       |                                     | $      | 0.15 |   |

*See      notes to condensed consolidated financial statements      (unaudited)*

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*Table          of Contents*

| **RURBAN                FINANCIAL CORP.**                                                             |
|-------------------------------------------------------------------------------------------------------|
| **CONDENSED                CONSOLIDATED STATEMENTS OF CHANGES IN                STOCKHOLDERS’** |
| **EQUITY                (UNAUDITED)**                                                                 |

|                                                           |   |                              |       |                              |   |                              |   |                              |       |
|----------------------------------------------------------------|--------|-----------------------------------|------------|-----------------------------------|--------|-----------------------------------|--------|-----------------------------------|------------|
|                                                           |   | Three                Months Ended |       | Nine                Months Ended  |   |
|                                                           |   | September                30, 2007 |       | September                30, 2006 |   | September                30, 2007 |   | September                30, 2006 |       |
|                                                           |   |                              |       |                              |   |                              |   |                              |       |
| Balance                at beginning of period                  |   | $                                 | 57,349,495 |                              | $      | 54,026,126                        |   | $                                 | 56,955,153 |   | $ | 54,450,648 |   |
|                                                           |   |                              |       |                              |   |                              |   |                              |       |   |   |   |   |
| Net                Income                                      |   |                              | 863,601    |                              |   | 813,741                           |   |                              | 2,351,099  |   |   | 2,049,809 |   |
|                                                           |   |                              |       |                              |   |                              |   |                              |       |   |   |   |   |
| Other                comprehensive income (loss):              |   |                              |       |                              |   |                              |   |                              |       |   |   |   |   |
| Net                change in unrealized gains (losses)         |   |                              |       |                              |   |                              |   |                              |       |   |   |   |   |
| ** **On                securities available for sale, net |   |                              | 821,754    |                              |   | 1,516,738                         |   |                              | 458,172    |   |   | 347,011 |   |
| Total                comprehensive income (loss)               |   |                              | 1,685,355  |                              |   | 2,330,479                         |   |                              | 2,809,271  |   |   | 2,396,820 |   |
|                                                                |   |                              |       |                              |   |                              |   |                              |       |   |   |   |   |
| Cash                dividend                                   |   |                              | (349,960   | )                                 |   | (251,372                          | )      |                              | (953,252   | ) |   | (754,113 | ) |
|                                                           |   |                              |       |                              |   |                              |   |                              |       |   |   |   |   |
| Purchase                of treasury shares                     |   |                              | (201,280   | )                                 |   | —                           |   |                              | (350,480   | ) |   | — |   |
|                                                           |   |                              |       |                              |   |                              |   |                              |       |   |   |   |   |
| Stock                option expense                            |   |                              | 20,744     |                              |   | 5,940                             |   |                              | 43,662     |   |   | 17,818 |   |
|                                                           |   |                              |       |                              |   |                              |   |                              |       |   |   |   |   |
| Balance                at end of period                        |   | $                                 | 58,504,354 |                              | $      | 56,111,173                        |   | $                                 | 58,504,354 |   | $ | 56,111,173 |   |

*See      notes to condensed consolidated financial statements      (unaudited)*

----

*Table          of Contents*

**Rurban      Financial Corp.**

**Condensed      Consolidated Statements of Cash Flows (Unaudited)**

**Nine      Months Ended**

|                                                                      |   | **September                30,****2007** |        | **September                30,****2006** |   |
|---------------------------------------------------------------------------|--------|------------------------------------------|-------------|------------------------------------------|--------|
| **Operating                Activities**                                   |   |                                     |        |                                     |   |
| Net                income                                                 |   | $                                        | 2,351,099   |                                     | $      | 2,049,809 |   |
| Items                not requiring (providing) cash                       |   |                                     |        |                                     |   |   |   |
| Depreciation                and amortization                              |   |                                     | 3,222,666   |                                     |   | 2,640,971 |   |
| Provision                for loan losses                                  |   |                                     | 378,643     |                                     |   | 337,321 |   |
| Expense                of stock option plan                               |   |                                     | 43,662      |                                     |   | 17,818 |   |
| Amortization                of premiums and discounts on securities       |   |                                     | 36,137      |                                     |   | 170,767 |   |
| Amortization                of intangible assets                          |   |                                     | 536,335     |                                     |   | 366,947 |   |
| Deferred                income taxes                                      |   |                                     | 682,352     |                                     |   | (847,663 | ) |
| FHLB                Stock Dividends                                       |   |                                     | (47,250     | )                                        |   | (386,500 | ) |
| Proceeds                from sale of loans held for sale                  |   |                                     | 12,902,818  |                                     |   | 15,207,292 |   |
| Originations                of loans held for sale                        |   |                                     | (12,210,691 | )                                        |   | (14,849,559 | ) |
| Gain                from sale of loans                                    |   |                                     | (302,028    | )                                        |   | (415,833 | ) |
| (Gain)                loss on sale of foreclosed assets                   |   |                                     | 15,244      |                                     |   | (92,432 | ) |
| (Gain)                loss on sales of fixed assets                       |   |                                     | 16,107      |                                     |   | 7,086 |   |
| Changes                in                                                 |   |                                     |        |                                     |   |   |   |
| Interest                receivable                                        |   |                                     | (244,491    | )                                        |   | (389,538 | ) |
| Other                assets                                               |   |                                     | (783,511    | )                                        |   | (223,486 | ) |
| Interest                payable and other liabilities                     |   |                                     | (2,529,428  | )                                        |   | (1,005,408 | ) |
| Net                cash provided by operating activities                  |   |                                     | 4,067,664   |                                     |   | 2,587,592 |   |
| **Investing                Activities**                                   |   |                                     |        |                                     |   |   |   |
| Purchases                of available-for-sale securities                 |   |                                     | (29,399,315 | )                                        |   | (13,783,842 | ) |
| Proceeds                from maturities of available-for-sale securities  |   |                                     | 27,350,999  |                                     |   | 10,417,559 |   |
| Proceeds                from sales of available-for-sale securities       |   |                                     | 2,408,608   |                                     |   | 15,240,716 |   |
| Proceeds                from sales of Fed Stock                           |   |                                     | 19,500      |                                     |   | — |   |
| Net                change in interest bearing deposits                    |   |                                     | 150,000     |                                     |   | — |   |
| Net                change in loans                                        |   |                                     | (18,386,570 | )                                        |   | (38,187,317 | ) |
| Purchase                of Bank Owned Life Insurance                      |   |                                     | (1,000,000  | )                                        |   | — |   |
| Purchase                of premises and equipment and software            |   |                                     | (3,249,937  | )                                        |   | (3,728,676 | ) |
| Proceeds                from sales of premises and equipment              |   |                                     | 257,928     |                                     |   | 38,741 |   |
| Proceeds                from sale of foreclosed assets                    |   |                                     | —     |                                     |   | 2,670,459 |   |
| Cash                paid to shareholders of Exchange Bank acquisition     |   |                                     | —     |                                     |   | (6,526,646 | ) |
| Cash                paid for Diverse Computer Marketers, Inc. acquisition |   |                                     | (266,560    | )                                        |   | — |   |
| Net                cash provided by (used in) investing activities        |   |                                     | (22,115,347 | )                                        |   | (38,662,583 | ) |

*See      notes to condensed consolidated financial statements      (unaudited)*

----

*Table          of Contents*

**Rurban      Financial Corp.**

**Condensed      Consolidated Statements of Cash Flows (Unaudited) (continued)**

**Nine      Months Ended**

|                                                                                                                           |   | **September                30,****2007** |        | **September                30,****2006** |   |
|--------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------|-------------|------------------------------------------|--------|
| **Financing                Activities**                                                                                        |   |                                     |        |                                     |   |
| Net                increase (decrease) in demand deposits, money market, interest checking                and savings accounts |   | $                                        | 2,749,134   |                                     | $      | 1,274,208 |   |
| Net                increase (decrease) in certificates of deposit                                                              |   |                                     | (4,152,160  | )                                        |   | 26,065,524 |   |
| Net                increase (decrease) in securities sold under agreements to                repurchase                        |   |                                     | 10,295,127  |                                     |   | 25,703,630 |   |
| Net                increase (decrease) in federal funds purchased                                                              |   |                                     | 4,400,000   |                                     |   | (3,800,000 | ) |
| Proceeds                from Notes Payable                                                                                     |   |                                     | —     |                                     |   | 2,500,000 |   |
| Proceeds                from Federal Home Loan Bank advances                                                                   |   |                                     | 9,000,000   |                                     |   | 27,900,000 |   |
| Repayment                of Federal Home Loan Bank advances                                                                    |   |                                     | (11,000,000 | )                                        |   | (34,900,000 | ) |
| Repayment                of notes payable                                                                                      |   |                                     | (1,563,214  | )                                        |   | (2,231,884 | ) |
| Purchase                of treasury stock                                                                                      |   |                                     | (350,480    | )                                        |   | — |   |
| Dividends                paid                                                                                                  |   |                                     | (953,252    | )                                        |   | (754,113 | ) |
| Net                cash (used in) provided by financing activities                                                             |   |                                     | 8,425,155   |                                     |   | 41,757,365 |   |
| **Increase                (Decrease) in Cash and Cash Equivalents**                                                            |   |                                     | (9,622,528  | )                                        |   | 5,682,374 |   |
| **Cash                and Cash Equivalents, Beginning of Year**                                                                |   |                                     | 22,481,791  |                                     |   | 12,650,839 |   |
| **Cash                and Cash Equivalents, End of Period**                                                                    |   | $                                        | 12,859,263  |                                     | $      | 18,333,213 |   |
|                                                                                                                           |   |                                     |        |                                     |   |   |   |
| **Supplemental                Cash Flows Information**                                                                         |   |                                     |        |                                     |   |   |   |
|                                                                                                                                |   |                                     |        |                                     |   |   |   |
| Interest                paid                                                                                                   |   | $                                        | 13,411,731  |                                     | $      | 10,561,921 |   |
|                                                                                                                           |   |                                     |        |                                     |   |   |   |
| Transfer                of loans to foreclosed assets                                                                          |   | $                                        | 82,397      |                                     | $      | 459,923 |   |
|                                                                                                                                |   |                                     |        |                                     |   |   |   |
|                                                                                                                                |   |                                     |        |                                     |   |   |   |

*See      notes to condensed consolidated financial statements      (unaudited)*

----

*Table          of Contents*

**RURBAN      FINANCIAL CORP. **

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)**

**NOTE      A—BASIS OF PRESENTATION**

**NOTE      B—EARNINGS PER SHARE**

|                                      |   | Three                Months Ended |      | Nine                Months Ended |   |
|-------------------------------------------|--------|-----------------------------------|-----------|----------------------------------|--------|
|                                      |   | September                30       |      | September                30      |   |
|                                           |   | 2007                              |      | 2006                             |   | 2007 |   | 2006 |   |
| Basic                earnings per share   |   |                              | 5,003,433 |                             |   | 5,027,433 |   |   | 5,018,567 |   |   | 5,027,433 |   |
| Diluted                earnings per share |   |                              | 5,008,334 |                             |   | 5,027,704 |   |   | 5,021,939 |   |   | 5,030,084 |   |

**NOTE      C - LOANS, RISK ELEMENTS AND ALLOWANCE FOR LOAN LOSSES**

|                                                          |   | September                30, |        | December                31, |   |
|---------------------------------------------------------------|--------|------------------------------|-------------|-----------------------------|--------|
|                                                          |   | 2007                         |        | 2006                        |   |
|                                                          |   |                         |        |                        |   |
| Commercial                                                    |   | $                            | 79,667,905  |                        | $      | 71,640,907 |   |
| Commercial                real estate                         |   |                         | 123,433,841 |                        |   | 109,503,312 |   |
| Agricultural                                                  |   |                         | 46,709,478  |                        |   | 44,682,699 |   |
| Residential                real estate                        |   |                         | 86,730,067  |                        |   | 94,389,118 |   |
| Consumer                                                      |   |                         | 51,525,413  |                        |   | 49,314,080 |   |
| Lease                financing                                |   |                         | 458,502     |                        |   | 856,808 |   |
| Total                loans                                    |   |                         | 388,525,206 |                        |   | 370,386,924 |   |
| Less                                                          |   |                         |        |                        |   |   |   |
| Net                deferred loan fees, premiums and discounts |   |                         | (261,107    | )                           |   | (285,115 | ) |
|                                                          |   |                         |        |                        |   |   |   |
| Loans,                net of unearned income                  |   | $                            | 388,264,099 |                        | $      | 370,101,809 |   |
|                                                          |   |                         |        |                        |   |   |   |
| Allowance                for loan losses                      |   | $                            | (3,936,545  | )                           | $      | (3,717,377 | ) |

----

*Table          of Contents*

|                                        |   | Three                Months Ended |      | Nine                Months Ended |   |
|---------------------------------------------|--------|-----------------------------------|-----------|----------------------------------|--------|
|                                        |   | September                30,      |      | September                30,     |   |
|                                        |   | 2007                              |      | 2006                             |   | 2007 |   | 2006 |   |
| Balance,                beginning of period |   | $                                 | 3,824,445 |                             | $      | 4,438,139 |   | $ | 3,717,377 |   | $ | 4,699,827 |   |
| Provision                charged to expense |   |                              | 140,408   |                             |   | 35,000 |   |   | 378,643 |   |   | 337,321 |   |
| Recoveries                                  |   |                              | 40,222    |                             |   | 267,422 |   |   | 140,712 |   |   | 565,065 |   |
| Loans                charged off            |   |                              | (68,530   | )                                |   | (218,650 | ) |   | (300,187 | ) |   | (1,080,302 | ) |
| Balance,                end of period       |   | $                                 | 3,936,545 |                             | $      | 4,521,911 |   | $ | 3,936,545 |   | $ | 4,521,911 |   |

|                                                                                                                                              |   | September                30, |      | December                31, |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|-----------|-----------------------------|--------|
|                                                                                                                                              |   | 2007                         |      | 2006                        |   |
| Non-accrual                loans                                                                                                                  |   | $                            | 6,361,000 |                        | $      | 3,828,000 |   |
| Accruing                loans which are contractually past due 90 days or more as to interest                or                principal payments |   |                         | —   |                        |   | — |   |
| Total                non-performing loans                                                                                                         |   | $                            | 6,361,000 |                        | $      | 3,828,000 |   |

|                                                             |   | September                30, |      | December                31, |   |
|------------------------------------------------------------------|--------|------------------------------|-----------|-----------------------------|--------|
|                                                             |   | 2007                         |      | 2006                        |   |
|                                                             |   |                         |      |                        |   |
| Loans                with no allowance for loan losses allocated |   | $                            | 843,000   |                        | $      | 608,000 |   |
| Loans                with allowance for loan losses allocated    |   |                         | 1,906,000 |                        |   | 1,514,000 |   |
| Total                impaired loans                              |   | $                            | 2,749,000 |                        | $      | 2,122,000 |   |
|                                                             |   |                         |      |                        |   |   |   |
| Amount                of allowance allocated                     |   | $                            | 272,000   |                        | $      | 225,000 |   |

**NOTE      D - REGULATORY MATTERS**

----

*Table          of Contents*

* *

|                                                                   |   | **Actual** |   | **Minimum                Required For Capital****Adequacy                Purposes** |   | **To                Be Well Capitalized Under****Prompt                Corrective Action****Provisions** |   |
|------------------------------------------------------------------------|--------|------------|--------|-------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------|--------|
|                                                                   |   | **Amount** |   | **Ratio**                                                                           |   | **Amount**                                                                                               |   | **Ratio** |   | **Amount** |   | **Ratio** |   |
| As                of September 30, 2007                                |   |       |   |                                                                                |   |                                                                                                     |   |   |   |   |   |   |   |
| Total                Capital (to                Risk-Weighted Assets)  |   |       |   |                                                                                |   |                                                                                                     |   |   |   |   |   |   |   |
| Consolidated                                                           |   | $          | 64.2   |                                                                                |   | 15.8                                                                                                     | %      | $ | 32.5 |   |   | 8.0 | % | $ | — |   |   | N/A |   |
| State                Bank                                              |   |       | 48.7   |                                                                                |   | 12.4                                                                                                     |   |   | 31.5 |   |   | 8.0 |   |   | 39.3 |   |   | 10.0 |   |
|                                                                   |   |       |   |                                                                                |   |                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier                I Capital (to                Risk-Weighted Assets) |   |       |   |                                                                                |   |                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                                                           |   |       | 59.9   |                                                                                |   | 14.8                                                                                                     |   |   | 16.2 |   |   | 4.0 |   |   | — |   |   | N/A |   |
| State                Bank                                              |   |       | 44.8   |                                                                                |   | 11.4                                                                                                     |   |   | 15.7 |   |   | 4.0 |   |   | 23.6 |   |   | 6.0 |   |
|                                                                   |   |       |   |                                                                                |   |                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier                I Capital (to                Average Assets)       |   |       |   |                                                                                |   |                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                                                           |   |       | 59.9   |                                                                                |   | 10.8                                                                                                     |   |   | 22.2 |   |   | 4.0 |   |   | — |   |   | N/A |   |
| State                Bank                                              |   |       | 44.8   |                                                                                |   | 8.4                                                                                                      |   |   | 21.4 |   |   | 4.0 |   |   | 26.8 |   |   | 5.0 |   |
| As                of December 31, 2006                                 |   |       |   |                                                                                |   |                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                Capital (to                Risk-Weighted Assets)  |   |       |   |                                                                                |   |                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                                                           |   | $          | 62.0   |                                                                                |   | 16.0                                                                                                     | %      | $ | 30.9 |   |   | 8.0 | % | $ | — |   |   | N/A |   |
| State                Bank                                              |   |       | 38.9   |                                                                                |   | 12.2                                                                                                     |   |   | 25.4 |   |   | 8.0 |   |   | 31.8 |   |   | 10.0 |   |
| Exchange                Bank                                           |   |       | 7.8    |                                                                                |   | 13.2                                                                                                     |   |   | 4.8 |   |   | 8.0 |   |   | 6.0 |   |   | 10.0 |   |
|                                                                   |   |       |   |                                                                                |   |                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier                I Capital (to                Risk-Weighted Assets) |   |       |   |                                                                                |   |                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                                                           |   |       | 57.6   |                                                                                |   | 14.9                                                                                                     |   |   | 15.5 |   |   | 4.0 |   |   | — |   |   | N/A |   |
| State                Bank                                              |   |       | 35.9   |                                                                                |   | 11.3                                                                                                     |   |   | 12.7 |   |   | 4.0 |   |   | 19.1 |   |   | 6.0 |   |
| Exchange                Bank                                           |   |       | 7.1    |                                                                                |   | 11.9                                                                                                     |   |   | 2.4 |   |   | 4.0 |   |   | 3.6 |   |   | 6.0 |   |
|                                                                   |   |       |   |                                                                                |   |                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier                I Capital (to                Average Assets)       |   |       |   |                                                                                |   |                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                                                           |   |       | 57.6   |                                                                                |   | 10.5                                                                                                     |   |   | 22.0 |   |   | 4.0 |   |   | — |   |   | N/A |   |
| State                Bank                                              |   |       | 35.9   |                                                                                |   | 7.9                                                                                                      |   |   | 18.2 |   |   | 4.0 |   |   | 22.8 |   |   | 5.0 |   |
| Exchange                Bank                                           |   |       | 7.1    |                                                                                |   | 8.7                                                                                                      |   |   | 3.3 |   |   | 4.0 |   |   | 4.1 |   |   | 5.0 |   |

----

*Table          of Contents*

**NOTE      E - CONTINGENT LIABILITIES**

**NOTE      F - NEW ACCOUNTING PRONOUNCEMENTS **

*Accounting      for Servicing of Financial Assets: an amendment of FASB Statement      No. 140*

----

*Table          of Contents*

*Fair      Value Measurements*

*Accounting      for Purchases of Life Insurance-Determining the Amount That Could Be Realized      in      Accordance with FASB Technical Bulletin No. 85-4 (Accounting for Purchases      of      Life Insurance). *

**NOTE      G - COMMITMENTS AND CREDIT RISK**

**NOTE      H - SEGMENT INFORMATION**

----

*Table          of Contents*

| **NOTE                H - SEGMENT INFORMATION                (Continued)** |
|----------------------------------------------------------------------------|

| As                of and for the nine months ended September 30, 2007 |   |
|-----------------------------------------------------------------------|--------|
|                                                                  |   |   |   | Data |   |   |   | Total |   | Intersegment |   | Consolidated |   |
| Income                statement information:                          |   | Banking |   | Processing |   | Other |   | Segments |   | Elimination |   | Totals |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                interest income (expense)                          |   | $ | 12,574,116 |   | $ | (220,225 | ) | $ | (1,349,526 | ) | $ | 11,004,365 |   |   |   |   | $ | 11,004,365 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest                income - external                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| customers                                                             |   |   | 5,503,066 |   |   | 14,467,788 |   |   | 58,430 |   |   | 20,029,284 |   |   |   |   |   | 20,029,284 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest                income - other segments                   |   |   | 539,276 |   |   | 1,188,208 |   |   | 992,321 |   |   | 2,719,805 |   |   | (2,719,805 | ) |   | — |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                revenue                                          |   |   | 18,616,458 |   |   | 15,435,771 |   |   | (298,775 | ) |   | 33,753,454 |   |   | (2,719,805 | ) |   | 31,033,649 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest                expense                                   |   |   | 15,431,283 |   |   | 12,670,567 |   |   | 2,089,977 |   |   | 30,191,827 |   |   | (2,719,805 | ) |   | 27,472,022 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Significant                non-cash items:                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation                and                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| amortization                                                          |   |   | 751,206 |   |   | 2,379,089 |   |   | 92,371 |   |   | 3,222,666 |   |   | — |   |   | 3,222,666 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Provision                for loan losses                              |   |   | 378,643 |   |   | — |   |   | — |   |   | 378,643 |   |   | — |   |   | 378,643 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                tax expense (benefit)                           |   |   | 730,451 |   |   | 940,170 |   |   | (838,736 | ) |   | 831,885 |   |   | — |   |   | 831,885 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment                profit (loss)                                  |   | $ | 2,076,081 |   | $ | 1,825,034 |   | $ | (1,550,016 | ) | $ | 2,351,099 |   | $ | — |   | $ | 2,351,099 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                sheet information:                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                assets                                           |   | $ | 546,412,401 |   | $ | 19,684,894 |   | $ | 7,700,083 |   | $ | 573,797,378 |   | $ | (8,123,087 | ) | $ | 565,674,291 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Goodwill                and intangibles                               |   |   | 11,812,295 |   |   | 7,450,970 |   |   | — |   |   | 19,263,265 |   |   | — |   |   | 19,263,265 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Premises                and equipment expenditures                    |   |   | 1,009,075 |   |   | 2,103,791 |   |   | 137,071 |   |   | 3,249,937 |   |   | — |   |   | 3,249,937 |   |

----

*Table            of Contents*

**NOTE      H — SEGMENT INFORMATION (Continued)**

| As                  of and for the nine months ended September 30, 2006 |   |
|-------------------------------------------------------------------------|--------|
|                                                                    |   |   |   | Data |   |   |   | Total |   | Intersegment |   | Consolidated |   |
| Income                  statement information:                          |   | Banking |   | Processing |   | Other |   | Segments |   | Elimination |   | Totals |   |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  interest income (expense)                          |   | $ | 12,944,038 |   | $ | (164,635 | ) | $ | (1,329,350 | ) | $ | 11,450,053 |   |   |   |   | $ | 11,450,053 |   |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest                  income - external                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| customers                                                               |   |   | 5,797,646 |   |   | 10,312,757 |   |   | 68,904 |   |   | 16,179,307 |   |   |   |   |   | 16,179,307 |   |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest                  income - other segments                   |   |   | 77,168 |   |   | 1,206,824 |   |   | 759,480 |   |   | 2,043,472 |   |   | (2,043,472 | ) |   | — |   |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                  revenue                                          |   |   | 18,818,852 |   |   | 11,354,946 |   |   | (500,966 | ) |   | 29,672,832 |   |   | (2,043,472 | ) |   | 27,629,360 |   |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest                  expense                                   |   |   | 15,610,960 |   |   | 9,117,085 |   |   | 1,859,989 |   |   | 26,588,034 |   |   | (2,043,472 | ) |   | 24,544,562 |   |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Significant                  non-cash items:                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation                  and                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| amortization                                                            |   |   | 752,292 |   |   | 1,839,814 |   |   | 48,865 |   |   | 2,640,971 |   |   | — |   |   | 2,640,971 |   |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Provision                  for loan losses                              |   |   | 337,321 |   |   | — |   |   | — |   |   | 337,321 |   |   | — |   |   | 337,321 |   |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                  tax expense (benefit)                           |   |   | 749,869 |   |   | 760,874 |   |   | (813,075 | ) |   | 697,668 |   |   | — |   |   | 697,668 |   |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Segment                  profit (loss)                                  |   | $ | 2,120,702 |   | $ | 1,476,987 |   | $ | (1,547,880 | ) | $ | 2,049,809 |   | $ | — |   | $ | 2,049,809 |   |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                  sheet information:                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                  assets                                           |   | $ | 553,810,212 |   | $ | 19,981,151 |   | $ | 8,623,336 |   | $ | 582,414,699 |   | $ | (12,427,586 | ) | $ | 569,987,113 |   |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Goodwill                  and intangibles                               |   |   | 12,270,962 |   |   | 7,273,716 |   |   | — |   |   | 19,544,678 |   |   | — |   |   | 19,544,678 |   |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Premises                  and equipment expenditures                    |   |   | 415,137 |   |   | 2,519,955 |   |   | 83,804 |   |   | 3,018,896 |   |   | — |   |   | 3,018,896 |   |

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*Table          of Contents*

**NOTE        H — SEGMENT INFORMATION (Continued)**

|                                                                     |   |    |        |       |   |       |   |     |      |         |   |         |   |
|--------------------------------------------------------------------------|--------|---------|-------------|------------|--------|------------|--------|----------|-----------|--------------|--------|--------------|--------|
| As                  of and for the three months ended September 30, 2007 |   |
|                                                                     |   |    |        | Data       |   |       |   | Total    |      | Intersegment |   | Consolidated |   |
| Income                  statement information:                           |   | Banking |        | Processing |   | Other      |   | Segments |      | Elimination  |   | Totals       |   |
|                                                                     |   |    |        |       |   |       |   |     |      |         |   |         |   |
| Net                  interest income (expense)                           |   | $       | 4,169,772   |       | $      | (53,123    | )      | $        | (455,698  | )            | $      | 3,660,951    |   |   |   |   | $ | 3,660,951 |   |
|                                                                     |   |    |        |       |   |       |   |     |      |         |   |         |   |   |   |   |   |   |   |
| Non-interest                  income - external                          |   |    |        |       |   |       |   |     |      |         |   |         |   |   |   |   |   |   |   |
| customers                                                                |   |    | 1,756,535   |       |   | 5,004,394  |   |     | 21,913    |         |   | 6,782,842    |   |   |   |   |   | 6,782,842 |   |
|                                                                     |   |    |        |       |   |       |   |     |      |         |   |         |   |   |   |   |   |   |   |
| Non-interest                  income - other segments                    |   |    | 12,328      |       |   | 380,968    |   |     | 333,880   |         |   | 727,176      |   |   | (727,176 | ) |   | — |   |
|                                                                     |   |    |        |       |   |       |   |     |      |         |   |         |   |   |   |   |   |   |   |
| Total                  revenue                                           |   |    | 5,938,635   |       |   | 5,332,239  |   |     | (99,905   | )            |   | 11,170,969   |   |   | (727,176 | ) |   | 10,443,793 |   |
|                                                                     |   |    |        |       |   |       |   |     |      |         |   |         |   |   |   |   |   |   |   |
| Non-interest                  expense                                    |   |    | 4,873,670   |       |   | 4,333,698  |   |     | 626,207   |         |   | 9,833,575    |   |   | (727,176 | ) |   | 9,106,399 |   |
|                                                                     |   |    |        |       |   |       |   |     |      |         |   |         |   |   |   |   |   |   |   |
| Significant                  non-cash items:                             |   |    |        |       |   |       |   |     |      |         |   |         |   |   |   |   |   |   |   |
|                                                                     |   |    |        |       |   |       |   |     |      |         |   |         |   |   |   |   |   |   |   |
| Depreciation                  and                                        |   |    |        |       |   |       |   |     |      |         |   |         |   |   |   |   |   |   |   |
| amortization                                                             |   |    | 254,631     |       |   | 971,425    |   |     | 34,307    |         |   | 1,260,363    |   |   | — |   |   | 1,260,363 |   |
|                                                                     |   |    |        |       |   |       |   |     |      |         |   |         |   |   |   |   |   |   |   |
| Provision                  for loan losses                               |   |    | 140,409     |       |   | —    |   |     | —   |         |   | 140,409      |   |   | — |   |   | 140,409 |   |
|                                                                     |   |    |        |       |   |       |   |     |      |         |   |         |   |   |   |   |   |   |   |
| Income                  tax expense (benefit)                            |   |    | 250,325     |       |   | 339,505    |   |     | (256,446  | )            |   | 333,384      |   |   | — |   |   | 333,384 |   |
|                                                                     |   |    |        |       |   |       |   |     |      |         |   |         |   |   |   |   |   |   |   |
| Segment                  profit (loss)                                   |   | $       | 674,231     |       | $      | 659,036    |   | $        | (469,666  | )            | $      | 863,601      |   | $ | — |   | $ | 863,601 |   |
|                                                                     |   |    |        |       |   |       |   |     |      |         |   |         |   |   |   |   |   |   |   |
| Balance                  sheet information:                              |   |    |        |       |   |       |   |     |      |         |   |         |   |   |   |   |   |   |   |
|                                                                     |   |    |        |       |   |       |   |     |      |         |   |         |   |   |   |   |   |   |   |
| Total                  assets                                            |   | $       | 546,412,401 |       | $      | 19,684,894 |   | $        | 7,700,083 |         | $      | 573,797,378  |   | $ | (8,123,087 | ) | $ | 565,674,291 |   |
|                                                                     |   |    |        |       |   |       |   |     |      |         |   |         |   |   |   |   |   |   |   |
| Goodwill                  and intangibles                                |   |    | 11,812,295  |       |   | 7,450,970  |   |     | —   |         |   | 19,263,265   |   |   | — |   |   | 19,263,265 |   |
|                                                                     |   |    |        |       |   |       |   |     |      |         |   |         |   |   |   |   |   |   |   |
| Premises                  and equipment expenditures                     |   |    | 9,045       |       |   | 711,536    |   |     | 75,880    |         |   | 796,461      |   |   | — |   |   | 796,461 |   |

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*Table          of Contents*

**NOTE        H — SEGMENT INFORMATION (Continued)**

|                                                                     |   |    |        |       |   |       |   |     |      |         |   |         |   |
|--------------------------------------------------------------------------|--------|---------|-------------|------------|--------|------------|--------|----------|-----------|--------------|--------|--------------|--------|
| As                  of and for the three months ended September 30, 2006 |   |
|                                                                     |   |    |        | Data       |   |       |   | Total    |      | Intersegment |   | Consolidated |   |
| Income                  statement information:                           |   | Banking |        | Processing |   | Other      |   | Segments |      | Elimination  |   | Totals       |   |
|                                                                     |   |    |        |       |   |       |   |     |      |         |   |         |   |
| Net                  interest income (expense)                           |   | $       | 4,280,347   |       | $      | (67,045    | )      | $        | (457,768  | )            | $      | 3,755,534    |   |   |   |   | $ | 3,755,534 |   |
|                                                                     |   |    |        |       |   |       |   |     |      |         |   |         |   |   |   |   |   |   |   |
| Non-interest                  income - external                          |   |    |        |       |   |       |   |     |      |         |   |         |   |   |   |   |   |   |   |
| customers                                                                |   |    | 2,090,996   |       |   | 3,785,037  |   |     | 26,723    |         |   | 5,902,756    |   |   |   |   |   | 5,902,756 |   |
|                                                                     |   |    |        |       |   |       |   |     |      |         |   |         |   |   |   |   |   |   |   |
| Non-interest                  income - other segments                    |   |    | 24,771      |       |   | 366,823    |   |     | 211,127   |         |   | 602,721      |   |   | (602,721 | ) |   | — |   |
|                                                                     |   |    |        |       |   |       |   |     |      |         |   |         |   |   |   |   |   |   |   |
| Total                  revenue                                           |   |    | 6,396,114   |       |   | 4,084,815  |   |     | (219,918  | )            |   | 10,261,011   |   |   | (602,721 | ) |   | 9,658,290 |   |
|                                                                     |   |    |        |       |   |       |   |     |      |         |   |         |   |   |   |   |   |   |   |
| Non-interest                  expense                                    |   |    | 5,143,829   |       |   | 3,361,095  |   |     | 612,453   |         |   | 9,117,377    |   |   | (602,721 | ) |   | 8,514,656 |   |
|                                                                     |   |    |        |       |   |       |   |     |      |         |   |         |   |   |   |   |   |   |   |
| Significant                  non-cash items:                             |   |    |        |       |   |       |   |     |      |         |   |         |   |   |   |   |   |   |   |
|                                                                     |   |    |        |       |   |       |   |     |      |         |   |         |   |   |   |   |   |   |   |
| Depreciation                  and                                        |   |    |        |       |   |       |   |     |      |         |   |         |   |   |   |   |   |   |   |
| amortization                                                             |   |    | 270,365     |       |   | 653,730    |   |     | (867      | )            |   | 923,228      |   |   | — |   |   | 923,228 |   |
|                                                                     |   |    |        |       |   |       |   |     |      |         |   |         |   |   |   |   |   |   |   |
| Provision                  for loan losses                               |   |    | 35,000      |       |   | —    |   |     | —   |         |   | 35,000       |   |   | — |   |   | 35,000 |   |
|                                                                     |   |    |        |       |   |       |   |     |      |         |   |         |   |   |   |   |   |   |   |
| Income                  tax expense (benefit)                            |   |    | 335,409     |       |   | 246,066    |   |     | (286,582  | )            |   | 294,893      |   |   | — |   |   | 294,893 |   |
|                                                                     |   |    |        |       |   |       |   |     |      |         |   |         |   |   |   |   |   |   |   |
| Segment                  profit (loss)                                   |   | $       | 881,876     |       | $      | 477,654    |   | $        | (545,789  | )            | $      | 813,741      |   | $ | — |   | $ | 813,741 |   |
|                                                                     |   |    |        |       |   |       |   |     |      |         |   |         |   |   |   |   |   |   |   |
| Balance                  sheet information:                              |   |    |        |       |   |       |   |     |      |         |   |         |   |   |   |   |   |   |   |
|                                                                     |   |    |        |       |   |       |   |     |      |         |   |         |   |   |   |   |   |   |   |
| Total                  assets                                            |   | $       | 553,810,212 |       | $      | 19,981,151 |   | $        | 8,623,336 |         | $      | 582,414,699  |   | $ | (12,427,586 | ) | $ | 569,987,113 |   |
|                                                                     |   |    |        |       |   |       |   |     |      |         |   |         |   |   |   |   |   |   |   |
| Goodwill                  and intangibles                                |   |    | 12,270,962  |       |   | 7,273,716  |   |     | —   |         |   | 19,544,678   |   |   | — |   |   | 19,544,678 |   |
|                                                                     |   |    |        |       |   |       |   |     |      |         |   |         |   |   |   |   |   |   |   |
| Premises                  and equipment expenditures                     |   |    | 4,849       |       |   | 303,676    |   |     | 7,774     |         |   | 316,299      |   |   | — |   |   | 316,299 |   |

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*Table            of Contents*

**Item      2. Management’s Discussion and Analysis of Financial Condition      and Results of Operations**

**Cautionary      Statement Regarding Forward-Looking Information**

**Overview      of Rurban**

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*Table          of Contents*

**Critical      Accounting Policies**

**Allowance      for Loan Losses - **

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*Table          of Contents*

**Goodwill      and Other Intangibles **
***-***

**Impact      of Accounting Changes**

**Three      Months Ended September 30, 2007 compared to Three Months Ended September 30,      2006**

***Net      Income:***

***Net      Interest Income:***

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*Table          of Contents*

***Provision      for Loan Losses:***

| *($                in Thousands)*                                | September                30,2007 | June                30,2007 | September                30,2006 |
|------------------------------------------------------------------|----------------------------------|-----------------------------|----------------------------------|
| Net                charge-offs                                   | $28                              | $90                         | $(54)                            |
| Non-performing                loans                              | 6,361                            | 5,913                       | 5,636                            |
| OREO                / OAO                                        | 71                               | 84                          | 490                              |
| Non-performing                assets                             | 6,432                            | 5,997                       | 6,126                            |
| Non-performing                assets / Total assets              | 1.14%                            | 1.09%                       | 1.07%                            |
| Allowance                for loan losses / Total loans           | 1.01%                            | 1.00%                       | 1.24%                            |
| Allowance                for loan losses / Non-performing assets | 61.2%                            | 63.8%                       | 73.8%                            |

***Non-interest      Income:***

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*Table          of Contents*

***Non-interest      Expense:***

**Nine      Months Ended September 30, 2007 compared to Nine Months Ended September 30,      2006**

***Net      Income:***

***Net      Interest Income:***

***Provision      for Loan Losses:***

***Non-interest      Income:***

***Non-interest      Expense:***

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*Table          of Contents*

**Changes      in Financial Condition**

**September      30, 2007 vs. December 31, 2006**

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*Table            of Contents*

**Capital      Resources**

|                                                   |   |   |   |                             |   |                              |   |                                   |   | Minimum                Required |   |
|--------------------------------------------------------|--------|--------|--------|----------------------------------|--------|-----------------------------------|--------|----------------------------------------|--------|---------------------------------|--------|
|                                                   |   |   |   |                             |   | Minimum                Required   |   | To                Be Well Capitalized  |   |
|                                                   |   |   |   |                             |   | For                Capital        |   | Under                Prompt Corrective |   |
|                                                   |   | Actual |   | Adequacy                Purposes |   | Action                Regulations |   |
|                                                   |   | Amount |   | Ratio                            |   | Amount                            |   | Ratio                                  |   | Amount                          |   | Ratio |   |
|                                                   |   |   |   |                             |   |                              |   |                                   |   |                            |   |   |   |
| Total                capital (to risk weighted assets) |   |   |   |                             |   |                              |   |                                   |   |                            |   |   |   |
| Consolidated                                           |   | $      | 64.2   |                             |   | 15.8                              | %      | $                                      | 32.5   |                            |   | 8.0 | % | $ | - |   |   | N/A |   |
| State                Bank                              |   |   | 48.7   |                             |   | 12.4                              |   |                                   | 31.5   |                            |   | 8.0 |   |   | 39.3 |   |   | 10.0 |   |

**LIQUIDITY**

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*Table          of Contents*

**Off-Balance-Sheet      Borrowing Arrangements:**

**ASSET      LIABILITY MANAGEMENT**

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*Table          of Contents*

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*Table          of Contents*

**Item      3. Quantitative and Qualitative Disclosures About Market      Risk**

----

*Table          of Contents*

**Principal/Notional      Amount Maturing or Assumed to Withdraw In:**

**(Dollars      in Thousands)**

| Comparison                of 2007 to 2006:       |   | First  |    | Years                               |   |       |   |   |    |
|--------------------------------------------------|--------|--------|---------|-------------------------------------|--------|------------|--------|--------|---------|
| Total                rate-sensitive assets:      |   | Year   |    | 2                -                5 |   | Thereafter |   | Total  |    |
| At                September 30, 2007             |   | $      | 175,702 |                                | $      | 184,873    |   | $      | 134,470 |   | $ | 495,045 |   |
| At                December 31, 2006              |   |   | 195,015 |                                |   | 170,804    |   |   | 120,379 |   |   | 486,198 |   |
| Increase                (decrease)               |   | $      | (19,313 | )                                   | $      | 14,069     |   | $      | 14,091  |   | $ | 8,847 |   |
|                                             |   |   |    |                                |   |       |   |   |    |   |   |   |   |
| Total                rate-sensitive liabilities: |   |   |    |                                |   |       |   |   |    |   |   |   |   |
| At                September 30, 2007             |   | $      | 248,234 |                                | $      | 230,870    |   | $      | 21,660  |   | $ | 500,764 |   |
| At                December 31, 2006              |   |   | 232,446 |                                |   | 237,240    |   |   | 21,349  |   |   | 491,035 |   |
| Increase                (decrease)               |   | $      | 15,788  |                                | $      | (6,370     | )      | $      | 311     |   | $ | 9,729 |   |

**Item      4. Controls and Procedures**

| **·** | information                required to be disclosed by the Company in this Quarterly Report                on Form                10-Q and other reports which the Company files or submits under the                Exchange Act would be accumulated                and |
|------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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*Table          of Contents*

| **·** | information                required to be disclosed by the Company in this Quarterly Report                on Form                10-Q and other reports which the Company files or submits under the                Exchange Act would be recorded, processed, summarized and reported                within                the time periods specified in the SEC’s rules and forms;                and |
|------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **·** | the                Company’s disclosure controls and procedures were effective as of the end                of the quarterly period covered by this Quarterly Report on Form                10-Q. |
|------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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*Table          of Contents*

**PART      II - OTHER INFORMATION**

**Item      1. Legal Proceedings**

**Item      1A. Risk Factors**

**Item      2. Unregistered Sales of Equity Securities and Use of      Proceeds**

|   | a. | Not                applicable |
|--------|----|-------------------------------|

|  | b. | Not                applicable |
|--|----|-------------------------------|

|  | c. | The                following table provides information regarding repurchases of the                Company’s common shares during the three months ended September 30,                2007: |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Period                                                | Total                Number ofShares                Purchased (1) | Average                PricePaid                per Share | Total                Number of Shares Purchased as Part of Publicly Announced Plans or                Programs | Maximum                Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased                Under the Plans or Programs (2) |
|-------------------------------------------------------|-------------------------------------------------------------------|-----------------------------------------------------------|----------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------|
| July                1 through July 31, 2007           | 19,568                                                            | $12.61                                                    | 16,000                                                                                                         | 222,000                                                                                                                                        |
| August                1 through August 31, 2007       | —                                                           | —                                                   | —                                                                                                        | 222,000                                                                                                                                        |
| September                1 through September 30, 2007 | 2,682                                                             | $12.67                                                    | —                                                                                                        | 222,000                                                                                                                                        |

----

| (1) | In                July and September 3,568 and 2,682 of the repurchased shares respectively,                were purchased in the open market by Reliance Financial Services,                an                indirect subsidiary of the Company, in its capacity as the administrator                of the Company’s Employee Stock Ownership and Savings Plan. The balance of                shares repurchased were part of the publicly announced                plan, |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | On                April 12, 2007 the Company announced that its Board of Directors                had                authorized a stock repurchase program pursuant to which the Company                may                purchase up to 250,000 common shares over the ensuing 15-month                period. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Item      3. Defaults Upon Senior Securities**

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*Table          of Contents*

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

**Item      5. Other Information**

**Item      6. Exhibits**

|  | 31.1 | -                Rule 13a-14(a)/15d-14(a) Certification (Principal Executive                Officer) |
|--|------|------------------------------------------------------------------------------------------------------|

|  | 31.2 | -                Rule 13a-14(a)/15d-14(a) Certification (Principal Financial                Officer) |
|--|------|------------------------------------------------------------------------------------------------------|

|  | 32.1 | -                Section 1350 Certification (Principal Executive                Officer) |
|--|------|------------------------------------------------------------------------------------------|

|  | 32.2 | -                Section 1350 Certification (Principal Financial                Officer) |
|--|------|------------------------------------------------------------------------------------------|

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*Table          of Contents*

**SIGNATURES**

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