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River Valley Bancorp (NASDAQ: RIVR), an Indiana corporation (the “Corporation”) and holding company for River Valley Financial Bank, based in Madison, Indiana announced today earnings for the period ended June 30, 2011.
Net income for the quarter ending June 30, 2011 was $621,519 or $0.35 per share. Net income for the like period in 2010 was $715,816, or $0.41 per share. For the quarter ended June 30, 2011, the return on average assets was 0.63%, and the return on average equity was 7.58%, which compares to 0.72% and 8.98%, respectively, for the same period ended June 30, 2010.
The quarterly results reflect modestly improving interest margins and slightly lower operating expenses, offset by higher provision for loan losses and lower noninterest income. Noninterest income decreased $200,000 in the current period in comparison to 2010, primarily from a decrease in sales of loans to the secondary market, and an increase in losses on real estate owned.
For the six-month period ended June 30, 2011, net income was $1.4 million, or $0.82 per share. For the six-month period ended June 30, 2010, net income was approximately the same, but the earnings per share was $0.83 per share. The return on average assets for the six-month period ended June 30, 2011 was 0.73%, and the return on average equity was 8.78%. For the same six-month period in 2010, those corresponding numbers were 0.72% and 9.08%.
For year-to-year comparison for the six-month period ended June 30th the Corporation expensed $323,000 more for the provision for loan losses in 2011, which partially offset a $391,000 increase in net interest margin. There was a modest decrease in noninterest income between like periods for the primary reasons discussed on the quarterly results, and moderately higher noninterest expense in 2011.
Assets totaled $399.9 million as of June 30, 2011, an increase of approximately $5.5 million from the $394.4 million reported as of June 30, 2010, and a $13.3 million increase from the $386.6 million recorded as of December 31, 2010. Net loans, including loans held for sale, were $260.9 million as of June 30, 2011, a decrease of $10.4 million from the balance reported as of June 30, 2010 of $271.3 million, and a decrease of $5.6 million from the balance of $266.5 million reported as of December 31, 2010. As of June 30, 2011, deposits totaled $296.1 million, an increase of $7.5 million from the $288.6 million reported as of June 30, 2010 and a $9.8 million increase from the $286.3 million recorded on December 31, 2010.