diff --git a/Makefile b/Makefile
index 19ac1f7a..adb62b03 100644
--- a/Makefile
+++ b/Makefile
@@ -1,17 +1,16 @@
 CODE   = amount.cc ledger.cc parse.cc reports.cc
 OBJS   = $(patsubst %.cc,%.o,$(CODE))
 CFLAGS = -Wall -ansi -pedantic
-#DFLAGS = -O3 -fomit-frame-pointer -mcpu=pentium
+DFLAGS = -O3 -fomit-frame-pointer -mcpu=pentium
 #DFLAGS = -g -DDEBUG=1
-DFLAGS = -O2
 INCS   =
 LIBS   = -lgmpxx -lgmp -lpcre
 
 ifdef GNUCASH
-CODE   := $(CODE) gnucash.cc
+CODE   := $(CODE)   gnucash.cc
 CFLAGS := $(CFLAGS) -DREAD_GNUCASH=1
-INCS   := $(INCS) -I/usr/include/xmltok
-LIBS   := $(LIBS) -lxmlparse
+INCS   := $(INCS)   -I/usr/include/xmltok
+LIBS   := $(LIBS)   -lxmlparse
 endif
 
 all: make.deps ledger ledger.info
diff --git a/ledger.cc b/ledger.cc
index fe05d19b..b77b8856 100644
--- a/ledger.cc
+++ b/ledger.cc
@@ -323,9 +323,13 @@ bool matches(const regexps_map& regexps, const std::string& str,
 //	  << (match ? "match" : "not match") << std::endl;
   }
 
-  if (match && ! definite && by_exclusion) {
-//    out << "  Note: Matched by exclusion rule" << std::endl;
-    *by_exclusion = true;
+  if (by_exclusion) {
+    if (match && ! definite && by_exclusion) {
+//      out << "  Note: Matched by exclusion rule" << std::endl;
+      *by_exclusion = true;
+    } else {
+      *by_exclusion = false;
+    }
   }
 
 //  out << "  Final result: " << (match ? "match" : "not match")
diff --git a/reports.cc b/reports.cc
index 920967ef..da33f42f 100644
--- a/reports.cc
+++ b/reports.cc
@@ -100,7 +100,7 @@ void report_balances(std::ostream& out, regexps_map& regexps)
 	      acct->checked = 1;
 	  }
 	  else {
-	    bool by_exclusion;
+	    bool by_exclusion = false;
 	    bool match = matches(regexps, acct->as_str(),
 				 &by_exclusion);
 	    if (! match) {